What Is a Vehicle Bill of Sale and Why You Need One

What is a vehicle bill of sale?

A vehicle bill of sale is a written record, signed by the seller and the buyer, documenting the transfer of a car, truck, motorcycle, RV, boat or trailer. It identifies both parties and the vehicle, states the purchase price and the date of sale, and records the terms — most often that the vehicle is sold "as is."

A general bill of sale does the same job for other personal property: furniture, equipment, electronics, musical instruments, livestock and more.

Bill of sale vs. certificate of title

The certificate of title is the official, state-issued proof of ownership; it must be signed over to the buyer to transfer a titled vehicle. A bill of sale does not replace the title. Instead, it supports it — giving the buyer evidence of the purchase price for sales-tax purposes and giving the seller proof of the date they stopped owning the vehicle.

Why buyers and sellers both need one

For the seller

• Proof of the exact date and time ownership transferred — critical if the buyer gets parking tickets, tolls or is in an accident before re-registering.
• Documentation that the vehicle was sold "as is," limiting later disputes about its condition.
• Support for any release-of-liability or notice-of-transfer filing your state requires.

For the buyer

• Proof of purchase price for calculating sales or use tax at registration.
• Evidence of ownership while the new title is being processed.
• A written record of the seller's promise that the vehicle is free of liens.

What to include in a vehicle bill of sale

1. Full legal names and addresses of the seller and buyer.
2. Date of sale and the state where the sale occurred.
3. Vehicle year, make, model, body style and color.
4. The 17-character Vehicle Identification Number (VIN), copied exactly from the title and the vehicle.
5. Odometer reading at the time of sale, with the federal odometer disclosure.
6. Purchase price and method of payment.
7. An "as is" clause or a description of any warranty.
8. The seller's statement that they own the vehicle and it is free of liens.
9. Signatures and printed names of both parties — and a notary block if your state requires one.

The federal odometer disclosure requirement

Federal law (49 U.S.C. § 32705 and NHTSA's regulations at 49 CFR Part 580) requires the seller to disclose the mileage in writing when ownership of a motor vehicle is transferred. The disclosure states whether the reading reflects the actual mileage, mileage in excess of the odometer's mechanical limits, or is not the actual mileage.

Under NHTSA's rule effective January 1, 2021, vehicles of model year 2011 and newer are exempt from the odometer disclosure requirement only once they are 20 years old; model year 2010 and older vehicles remain exempt after 10 years. For most cars sold today, the disclosure is required. It is usually made on the title itself — recording it on the bill of sale as well gives both parties a matching record.

Selling a car "as is"

In most private-party sales, the vehicle is sold "as is, where is," meaning the seller makes no warranty about its condition and the buyer accepts it with any existing faults. Putting this language in writing protects the seller. Buyers should get an independent pre-purchase inspection and a vehicle history report before signing.

Note that dealers are subject to the FTC Used Car Rule and must display a Buyers Guide; private sellers are not, but "as is" terms should still be stated clearly in the bill of sale.

Does a bill of sale need to be notarized?

Most states do not require a vehicle bill of sale to be notarized, but a few states require notarization for certain title or bill-of-sale documents, and some buyers or lenders ask for it anyway. Because requirements vary and change, check your state motor vehicle agency's website before the sale. US Form Kit lets you add an optional notary acknowledgment block in one tap.

After the sale: checklist

• Sign the title over to the buyer and complete the odometer section.
• Give the buyer a signed copy of the bill of sale and keep one yourself.
• Remove your license plates if your state requires it.
• File any notice of transfer or release of liability with your state.
• Cancel or transfer your insurance only after the transfer is complete.