People wonder if they need a bill of sale document for selling a car. It’s going to depend on where you live. You should check with your state’s Department of Motor Vehicles to know for sure (we have this list later on in this article).
You really can’t go wrong having one as it protects both you and the buyer. They will need it to prove that they now own the vehicle and since that’s important to them, you should provide it. It also protects you as the selling because the buyer states that they paid you for the vehicle.
Note: If you want to make sure that the Bill of Sale document you find is legal, then you should really contact a lawyer. The owner of this website does not claim to be a lawyer and it is your responsibility to make sure you follow the correct laws in your state to complete the sale of an automobile.
Download a Bill of Sale Document
Bill of Sale Template
There are places to get a Bill of Sale document online. Some state DMVs offer Bill of Sale documents on their websites, so that’s a good first place to check. Use the links above to find your DMV’s information about bill of sale documents.
Here is one place you can find Bill of Sale documents for each state:
http://www.dmv.org/bill-of-sale.php
Please note: The link above is not a government website – even though it kind of looks like one.
Here’s the Bill of Sale document I use (bill of sale Word doc):
- http://www.cartips.com/wp-content/uploads/Bill-of-Sale.doc (24 kb Word doc)
- http://www.cartips.com/wp-content/uploads/Bill-of-Sale.pdf (26 kb PDF file)
Note: If you want to make sure that the Bill of Sale document you find is legal, then you should really contact a lawyer. The owner of this website does not claim to be a lawyer and it is your responsibility to make sure you follow the correct laws in your state to complete the sale of an automobile.
What Should a Bill of Sale Document Say?
There are a number of things the bill of sale should say. They include:
- Seller’s name
- Buyer’s name
- VIN of the vehicle
- Vehicle year, make and model
- Odometer reading / disclosure
- Sale amount
- Date of the sale
Check Your State’s DMV
Here is the list of the Department of Motor Vehicles for every state in the United States – pick your state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Along With the Bill of Sale Document, What Else is Needed?
Payment
First, make sure you get cash or payment.
Title
Second, sign the title over to them. Record the odometer mileage. This protects you as the seller because if the new owner gets in an accident on the way home, you’ve shown when the vehicle was sold and it protects you / limits your liability.
You may opt to have a release of liability document for them to sign as well. It just states that you’re no longer responsible for the vehicle. You can include a line like this in the Bill of Sale document if you want.
Plates
Third, remove your plates/tags from the vehicle. I had someone once say that they wanted them on the car and they’d send them back to me but I declined. The license plates are your property. Don’t include them.
Maintenance Receipts
Fourth, hand over any maintenance records if you have them and want to give them to the buyer. You may choose to not do this as it’s one way where you can be a victim of identity theft. Yes, your address, signature and even partial credit card information is probably on those receipts. Either cut those parts out or cover over them with a marker if you hand them over.
Check the Car Over
Fifth, make sure all your property has been removed from the vehicle.
Keys
Sixth, hand over the keys – both/all sets.
Cancel Insurance
Finally, go cancel the insurance on the vehicle. Store the Bill of Sale document somewhere you know where it is in case you need to find it.
Smog Test
Your state’s DMV might require you get a smog test or there might be other requirements. Make sure you look up their website and find out all that you need to do. Make sure the registration for the car is up to date or you might owe money to the state.
Conclusion
It is in your best interest to have both you and the buyer sign a Bill of Sale document when selling your car. It protects the buyer, too. They will appreciate you having one ready. They may also bring one. In that case, look them both over and decide either to just sign one set or sign both sets of documents.
Make sure you see the buyer’s driver’s license so that you know it’s them. Make sure their signature matches, too. Don’t worry about offending them – this is a business deal. You’re not going to be best friends or anything. You most likely won’t ever see this person again in your life. It’s important to protect yourself, so don’t be afraid to ask for ID or ask them anything else. Treat the buyer right and obey the law.
I hope this article helped you understand what’s needed in a bill of sale document for selling a car. If you have questions or even comments, please leave them below. Please also share this article so that others know about it.