Car Bill of Sale: The Complete Guide

Selling or buying a car privately? A bill of sale is one of the most important documents in the transaction. This guide covers everything from what to include to how to protect yourself.

What Is a Car Bill of Sale?

A car bill of sale is a legal document that records the private sale of a motor vehicle between two individuals. It serves as a receipt for the buyer and a release of liability for the seller. Most state DMVs require it when transferring a vehicle title.

What to Include in a Car Bill of Sale

A complete car bill of sale should contain:

Vehicle Information

• Year, Make, Model: e.g., "2020 Toyota Camry SE"
• VIN: The 17-character Vehicle Identification Number (check the dashboard, driver's door jamb, or title)
• Odometer reading: Required by federal law for vehicles less than 20 years old
• Color: Exterior and interior
• License plate number: Current plate at time of sale

Seller and Buyer Details

• Full legal names (as they appear on ID)
• Current addresses
• Phone numbers
• Driver's license numbers (some states require this)

Sale Terms

• Sale price (the actual amount paid)
• Payment method (cash, cashier's check, bank transfer)
• Date of sale
• Whether the vehicle is sold "as-is" or with warranty

The Selling Process: Step by Step

1. Gather documents: Title, bill of sale, maintenance records, smog/emissions certification (if required)
2. Set a fair price: Check Kelley Blue Book or Edmunds for market value
3. Meet the buyer: Choose a public, well-lit location. Many police stations offer safe transaction zones.
4. Verify the buyer's identity: Check their driver's license
5. Complete the bill of sale: Both parties sign. Get it notarized if your state requires it.
6. Sign over the title: Fill in the buyer's information and sign the back of the title
7. Submit a release of liability: Many states let you do this online to formally notify the DMV you've sold the vehicle
8. Remove your plates: Required in most states

Protecting Yourself as a Seller

• Accept secure payment: Cash or cashier's check. Never accept personal checks — they can bounce.
• File a release of liability: This protects you if the buyer gets tickets or into accidents before transferring the title.
• Keep a copy of the bill of sale: Store it with your records for at least 3 years.
• Remove personal belongings: Check the glove box, trunk, and under seats.
• Cancel your insurance: But only after the sale is complete and plates are removed.

Protecting Yourself as a Buyer

• Run a VIN check: Use CARFAX or the NICB VINCheck to check for accidents, liens, and theft records.
• Get a pre-purchase inspection: Have a mechanic inspect the vehicle before buying.
• Verify the title: Make sure the VIN on the title matches the vehicle. Check for liens.
• Transfer title promptly: Most states require title transfer within 10–30 days. Delays can result in fines.
• Get insurance before driving: You need at minimum liability coverage before driving the car home.

State-Specific Requirements

Every state has different rules for private vehicle sales. Some require notarization, others need smog checks, and title transfer deadlines range from 10 to 180 days. Check your specific state's requirements: