What is A Car Bill Of Sale?

If you are planning to sell your car and don’t want any misunderstanding, you must know what is a car bill of sale. This paperwork ensures the legal transaction of car and helps deal with future consequences.

While some states require a specific car bill of sale, some allow it to make a custom form that includes all details. Read on to understand how to get a bill of sale, how to write a bill of sale, and more.

What Needs To Be On A Car Bill Of Sale? 

A car bill of sale is a record of a transaction of ownership between a car seller and a buyer. It serves as a receipt and invoice and contains outlines of guarantees and conditions of selling the car. Dealerships or private car sellers usually generate bills of sale. For the seller, the car bill of sale proves that he won’t be liable if the car causes an accident.

For Buyer, a car bill of sale proves ownership and helps understand the condition and engine performance of the car while buying. Even the buyer can take legal action if find any undisclosed faults after buying the car.

Car bill of sale is legally required for most of the states in the USA including Alabama, Colorado, New York, and Hawaii. Some states like New Hampshire, Louisiana, and West Virginia, require a lawyer public to witness the signing of a car bill of sale.

How To Get A Bill Of Sale For A Car?

If your state requires a car bill of sale, contact with Department of Motor Vehicles (DMV) to get the form of the bill of sale. While some states ask official form, some states allow drafting of a bill of sale. If you want to draft a car bill of sale, you can take the aid of many online templates.

How To Get A Bill Of Sale For A Car?

In this case, you can take templates from Adobe, Google Docs, and Microsoft Office, input the information, and print the document. However, if your state needs to approve the document template, contact with local DMV and follow their guidelines.

How To Write A Bill Of Sale For A Car?

If your state doesn’t require any specific form, you can then write a car bill of sale. Below are some components that you must include in car bill of sale form:

How To Write A Bill Of Sale For A Car?
  • Date of accepting buyer’s money and handing over the car.
  • Transaction amount.
  • The car model, year, VIN, license plate number, and current mileage.
  • Transferable warranty information or as-is condition.
  • Buyer’s full name, phone number and address.
  • Seller’s full name, phone number and address.
  • Confirmation of good faith.
  • Signatures of both seller and buyer.
  • Space for signature verification by a lawyer.


Can You Make A Car Bill Of Sale After Selling Your Car?

Yes, however, it can be more difficult to take buyers’ signatures after selling a car. A car bill of sale is a legal document that proves the ownership exchange between seller and buyer. If one party starts bargaining after completing the exchange, the other party can use this document as an enforceable contract.

What if A Buyer Refuses To Sign A Bill Of Sale?

If the buyer refuses to sign on car bill of sale, the seller won’t be able to use this document as an enforceable contract. However, sellers can still use this paper to establish the proof of car exchange and other purposes.

How To Fill Out A Title When Selling A Car?

The process of filling out a title while selling a car varies depending on the state you live in. However, it needs to complete steps like the selling price, selling date and the name of the buyer and seller.

Final Words

A car bill of sale is a vital paper that is proof of purchase and handover of ownership. It includes contract and sales receipts that are beneficial for both buyer and seller. So the car owner and buyer should complete their deal through car bill of sale even if the state doesn’t require it.

My name is Henry Roberts and I am an experienced car mechanic with over 15 years of expertise in the automotive industry. I am currently running a Auto Repair Shop in Denver, Colorado. I have been servicing and repairing vehicles at my shop, where i have built a solid reputation for my skill and knowledge. I am passionate about sharing my automotive knowledge through blogging and my goal is to provide accurate and helpful information to car owners to keep their vehicles in perfect condition.

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