How To Write a Bill of Sale for a Car (2024)

What you should include in a bill of sale

Updated on April 23, 2022

Reviewed byAndy Smith

Fact checked byRebecca McClay

In This Article

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In This Article

  • What Is a Bill of Sale?
  • Who Needs a Bill of Sale for a Car?
  • How To Write a Bill of Sale for a Car
  • Frequently Asked Questions (FAQs)

How To Write a Bill of Sale for a Car (1)

A bill of sale documents the purchase of a piece of property and its transfer from a seller to a buyer. It’s often used in vehicle sale transactions and may be required by your state.

Learn more about what’s included in a bill of sale, whether you need one to sell your car, and how to write one.

Key Takeaways

  • A bill of sale for a car documents the purchase of a vehicle and typically includes the date, purchase price, vehicle details, and involved parties.
  • Some states require a bill of sale for vehicle sales while others don’t.
  • A bill of sale can help to prove the price paid for the vehicle to the state for sales tax purposes. It can also protect the seller against liability after the transfer of property.
  • Regardless of state requirements, a bill of sale is a good protective step for buyers and sellers.

What Is a Bill of Sale?

A bill of sale is a document that provides proof of a sale and the transfer of property from one party to another. It can be used when selling a variety of items but is most commonly used for vehicle sale transactions.

The bill of sale will identify the parties involved in the transaction, the property being transferred, and the date and price of the transaction. As a result, both parties will have proof of the sale. It can be important to show a release of liability on the part of the seller.

For example, say a car was sold from one private party to another. However, the buyer did not properly register the vehicle and used the car to commit a crime. With a bill of sale, the seller could prove they were no longer in possession of the vehicle.

Who Needs a Bill of Sale for a Car?

It’s wise to create a bill of sale for all private vehicle sale transactions so there is a record showing both parties agreed on the terms. However, in some states, it’s required. Several states also require you to use a specific form and/or have the bill of sale notarized.

Here’s a detailed look at the bill of sale requirements by state.

StateRequires Bill of Sale for Private Party Vehicle Purchase with TitleRequires a Notarized Bill of SaleRequires Specific Bill of Sale FormState Provides Form
AlabamaYesNoNoYes
AlaskaNoNoNoYes
ArizonaNoNoNoYes
ArkansasNoNoNoNot found
CaliforniaYesNoNoYes
ColoradoYesNoNoYes
ConnecticutYesNoNoYes
DelawareNoNoNoNot found
FloridaYesNoYesYes
GeorgiaYesNoYesYes
HawaiiNoNoNoNot found
IdahoYesNoNoYes
IllinoisNo (But may be required on a case by case basis)NoNoNot found
IndianaNoNoNoYes
IowaYesNoNoYes
KansasNo (unless the title doesn't have space for the purchase price)NoYesYes
KentuckyNoNoNoNot found
LouisianaNo (unless a title has not been issued in the state for the vehicle before)YesNoYes
MaineYesNoNoYes
MarylandYesYes (under some conditions)YesYes
MassachusettsNoNoNoNot found
MichiganNoNoNoNot found
MinnesotaNoNoNoNot found
MississippiNo (unless the title doesn't have space for the purchase price)NoNoNot found
MissouriYes (Or a Notice of Sale)NoYesYes
MontanaNoNoNoYes
NebraskaYes (or the DoR Form 6)Not specifiedNoYes
NevadaYesNoYesYes
New HampshireNo (except for title exempt vehicles)NoNoNot found
New JerseyYesNoNoNot found
New MexicoNo (Unless Assignment of Title is not on the back of the Title)NoYesYes
New YorkYesNoNoYes
North CarolinaNoNoNoNot found
North DakotaNoNoNoYes
OhioNoNoNoNot found
OklahomaNoNoNoNot found
OregonNo (But you can sign either the title or a bill of sale)NoNoYes
PennsylvaniaNoNoNoNot found
Rhode IslandYesNoNoNot found
South CarolinaNo (Unless the purchase price and odometer reading are not on the title)NoNoNot found
South DakotaNoNoNoYes
TennesseeNoNoNoNot found
TexasNoNoNoNot found
UtahNoNoNoYes
VermontYesNoNoYes
VirginiaYesNoNoYes
WashingtonYesNoNoYes
West VirginiaYes (If the sale price is less than 50% of the NADA Clean Book loan value)YesYesYes
WisconsinNoNoNoYes
WyomingYesYesNot specifiedYes

How To Write a Bill of Sale for a Car

While many states provide bill of sale forms, your state may also allow you to write one yourself. However, it will need specific information that often includes:

  • Date the vehicle was sold
  • Selling price of the vehicle
  • Vehicle’s make, year, model, odometer reading, and vehicle identification number (VIN)
  • Name, address, and signature of the buyer
  • Name, address, and signature of the seller

Frequently Asked Questions (FAQs)

How do you fill out a title when selling a car?

Filling out the title when selling your car will vary slightly from state to state. It typically requires completing a few fields like the selling date, selling price, odometer reading, seller’s and buyer’s names. Signatures are often required to release seller interest in the vehicle, transfer ownership to the buyer, and certify that all the information provided was true and correct.

Who pays sales tax when you’re selling a car privately?

When you sell a car privately, the buyer will pay any applicable sales tax to the state’s driving authority when they register and title the vehicle. States often give buyers a set period to register the vehicle and pay the tax.

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Sources

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

  1. Cornell Law School. "Bill of Sale."

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How To Write a Bill of Sale for a Car (2024)

FAQs

How To Write a Bill of Sale for a Car? ›

It should include a description of the sold item, the date and location of the transaction, and the amount paid from buyer to seller, as well as the names, street addresses, and signatures of the buyer and seller.

How do you write a bill for sale? ›

It should include a description of the sold item, the date and location of the transaction, and the amount paid from buyer to seller, as well as the names, street addresses, and signatures of the buyer and seller.

Does NJ require a notarized bill of sale? ›

A New Jersey motor vehicle bill of sale is a legal document that provides proof of the legal sale, purchase, and change of ownership of a motor vehicle. This form records necessary information about the seller, buyer, and vehicle for registration purposes. The bill of sale requires notarization.

How should a bill of sale be worded? ›

A general bill of sale should include the following:
  1. Names, addresses, and contact information of the buyer and seller.
  2. Date of the sale.
  3. Amount the buyer paid for the property.
  4. Description of the property.
  5. If the item is being sold as-is, a statement for this.

Can I register a car in NJ with just a bill of sale? ›

You will need all of the item listed in the first section (10 total), plus the following: The current title with a sales tax stamp, if sales tax has already been paid. If vehicle is non-titled, the last previously issued registration document and the bill of sale.

Is a handwritten bill of sale OK? ›

A bill of sale does not have to be digital to be considered valid. Both handwritten and digital formats are generally acceptable, as long as all necessary information is listed and you have the consent of both parties.

Can I sell my car to my son for $1 in NJ? ›

To gift someone a vehicle, you must transfer the vehicle title to their name and create a bill of sale. Selling a vehicle for $1 instead of gifting it could result in your recipient paying sales tax based on the car's fair market value — it's better to stick with the official gifting process.

What is a basic bill of sale NJ? ›

A New Jersey bill of sale creates a written record of a buyer providing a seller with payment for an item sold. It outlines the transaction's details, including the parties' names, a description of the transferred property, and the sale date.

Do I need a bill of sale to sell my car in NJ? ›

Although not legally required in New Jersey, a Bill of Sale should include the following information: Year, Make and Model of the Vehicle. Vehicle Identification Number (VIN) Date of Sale.

How do I write a bill? ›

A bill should be written so that each individual thing the bill is doing will be its own section. You may also need a section on how the bill will be funded. If your bill requires money, you will want to state how much money will be spent and from where the money will come.

Is a handwritten bill of sale legal in Texas? ›

Yes, Texas recognizes handwritten bills of sale as valid, as long as they contain all the necessary information and are signed by both the buyer and the seller. However, using a typed or printed document is generally more legible and professional.

Can I drive a car without plates if I just bought it in NJ? ›

Can You Drive A Car Without Plates When You Just Bought It? In New Jersey, cars and trucks must be titled, registered, and insured before a licensed driver takes it on the road. Most dealers will issue temporary tags to new customers.

Can I use a bill of sale to get a title in NJ? ›

To do a New Jersey title transfer, you'll need: The original title, signed by the buyer and seller. A bill of sale (that includes mileage, date of sale, and price)

Can I sell my car without a title in NJ? ›

A car title is an important legal document. Without a vehicle title, you have no way to prove you've obtained the vehicle legally and have a right to sell it. Whenever a vehicle is sold, each buyer must fill out and sign the title properly to prove ownership.

Is a handwritten bill of sale legal in Georgia? ›

Can you hand write a bill of sale in Georgia? In Georgia, a bill of sale for a car does not need to be notarized. Like the state form provided, any hand-drafted bill of sale will have to contain the following information: The names, contact information, and signatures of the seller and the buyer.

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