Vehicle Bill of Sale Form  

A Vehicle Bill of Sale is an official receipt that documents that one party sold a vehicle to another under agreed-upon terms. In most U.S. states, a valid Bill of Sale is one of the required documents (along with the signed Certificate of Title) for the buyer to request title transfer and register the vehicle. After the sale, the seller signs over the Title certificate to the buyer, and the buyer submits that signed title to the DMV (or equivalent agency) to record ownership in their name, paying taxes and fees as required.

Legal Significance of a Bill of Sale

A Bill of Sale by itself does not establish legal ownership in title states, but it has important legal value. For the seller, it shows they sold and delivered the vehicle and may help support that they are no longer responsible for that vehicle after the sale (especially in states where a release of liability or notice of sale is required). 

For the buyer, it is proof of the purchase, helps guard against fraud, and prevents the seller from later claiming ownership. However, it does not substitute for the title transfer process: the buyer must file the signed Certificate of Title, pay required charges, and complete registration within the deadline required by their state.

Whether you are buying a new boat or selling an old car, here’s a list of other practical instances when you need a Vehicle Bill of Sale:

• To satisfy statutory requirements, especially in interstate sales or transfers
• To support tax filing 
• To assist in insurance claims
• To facilitate official registration processes

What We Offer

Customized templates to process the sale & purchase of any type of vehicle! Grab a free template now, ready to print, or access online to efficiently process and finalize any type of legal transfer of a vehicle registered in the U.S. Always make sure you keep a copy of the bill after the sale!

Users:

• Private sellers and buyers
• Mechanics or repair shops
• Vehicle-manufacturing companies
•  Small-scale resellers 
• Notaries or estate executors
• Lawyers and legal advisors
• Farm owners and operators
• Factory owners & businesses 

Types of Vehicle

Vehicles span a wide range, from luxury yachts and mobile homes to mopeds and motorcycles. Given the distinct purposes, uses, and design features of each category, governments have established different laws and regulations for them.

For example:

• RVs may require special licenses, such as a CDL or Class B.
• Vehicles used for business may require commercial insurance, DOT numbers, and special permits.
• Vehicles meant for off-road use (think dirt bikes & ATVs!) must have Off-Highway Permits before they can drive on trails.
• Unpowered commercial trailers are subject to special safety laws, such as tests requiring functioning tail lights, brake lights, turn signals, and reflectors.
• Electric scooters and low-speed vehicles (like golf carts) often have speed-based registration exemptions, but still must meet helmet laws, age restrictions, and local traffic ordinances.

What’s the DMW?

The Department of Motor Vehicles is the designated government agency responsible for administering motor vehicle registration and driver licensing. Find your local DMW office here! 

Note that some vehicles may need to be registered with other government agencies, such as the wildlife departments or the local natural resource agency.

Vehicle Registration

Right after a sale, buyers must register the vehicle with the state DMV. 

This process involves a few steps: 

• Step 1: Filling out a Vehicle Registration Application form (along with required attachments) for the particular vehicle in question. The exact form varies by state; e.g., California’s REG 343 or New York’s MV-82.
• Step 2: Paying the Registration Fee. These vary by state, too!
• Step 3: Submitting your Forms & Fees to the DMV
• Step 4: Receiving Plates, Registration Card & Sticker

Keep in mind that registration must be renewed annually or biennially, depending on where you are using or operating the vehicle!

Check with your local DMW or other relevant agency for the exact registration process, fee schedules & documentary requirements for different types of vehicles!

Legal Requirements of a Vehicle Bill of Sale

Each state or locality may have its own rules about what must be included in a bill of sale. Be sure to check with your local DMV to ensure your Bill of Sale document meets all legal requirements.

Our template has been expertly crafted to meet your official documentation needs. Once you download the file to your computer, you’ll find 4 separate documents:

• The Bill of Sale Document
• An Odometer Disclosure Statement
• A Notarization Form
• A checklist of supporting documents attached to the bill of sales involving the sale or ownership transfer of any type of vehicle registered or traded in the U.S. 

Below, I present a user-friendly guide on how to fill out our Bill of Sale document from scratch!

Step-by-step Guide to Using Our Premade Vehicle Bill of Sale

Our template is tailored to U.S. market needs and legal requirements, and we designed our vehicle bill of sale template to be as generic and simple as possible. This means you can use it to sell, buy, gift, trade, or otherwise transfer any type of motorized or non-motorized vehicle in the U.S.!

Once you download the template, simply follow the instructions below to complete the form, finalize the sale or transfer of the vehicle, and save yourself hours of research, drafting, and formatting a bill of sale.

Note down when & where the Bill is being signed

Before digging deep into the details of the transaction, let’s cover the basics to ensure proper documentation of the Bill of Sale, for example…

• When was the bill signed? All terms in the Bill shall come into effect as of this date.  This date is what courts and agencies look at for deadlines, warranties, return windows, and tax timing. If payment or delivery happened on a different day, note those dates separately in the bill.

• Where was the bill of sale signed? Pinning down the city, county, and state helps determine which state or local laws apply in case of a dispute later on. Remember, not every legal forum will have the jurisdiction to hear your case. Courts often look first to the place of signing when deciding applicable law, unless your contract names a different governing law or forum.

Identify both parties to the Sale

Identify the seller & buyer to ensure proper documentation for legal purposes and future reference. Use our dedicated space to record the following as accurately & diligently as possible, ensuring there’s no dispute or confusion about who is selling the vehicle to whom:

• Full legal names
• Postal address
• Email ID
• Telephone #
• License number

Co-buying or selling?

If there’s more than one seller or buyer involved, you must identify and note down the ID details for each one of them. But first, check the relevant box to specify if the transaction is being entered into by:

• One individual buyer
• Co-buyers
• One individual seller
• Co-sellers 

Specify what type of transaction you are entering

Use this section to specify the nature of the transaction. Is it a regular commercial sale? A gift meant for a loved one? Perhaps you are trading your vehicle for another one? Either way, you can think of a bill of sale as a receipt that may be referred back to if there is ever a legal dispute or you need to supply evidence for tax reasons.

In our template, you need to mark the relevant checkbox to describe the nature & type of transaction you are working with.

1. For regular sales, tick the first checkbox and enter the exact paid purchase price carefully, preferably in both numbers and words. Use permanent ink and draw a line through any unused space after the amount in words. This makes it difficult for anyone to alter the value later. Now, specify how the payment shall be made, whether via cash, check, a digital money transfer, etc. A miscellaneous ‘Other’ category is added for any other type of payment processing method not covered by default.
   
2. For trade-ins with another vehicle, check the second option and use the blank space  to specify what that vehicle is valued at. You must also add relevant vehicular information to help identify the vehicle you are trading for. See the next section for more guidance on how to accurately identify a vehicle for legal purposes.

3. For gift-based transactions, check the last box. In these types of transactions, no monetary payment is involved. However, you may still need to specify the value of the vehicle in the blank space provided to you. This valuation is important to ensure that the fair market value is well-documented for audits or disputes. For example, if the gift is questioned later, a stated value helps show it was not an under-the-table sale.

Use Version II of BOS if the sale involves trade-ins or gifts.

Insert vehicle details

Get ready to browse through some old invoices & manuals, or find those certification labels on the door jamb, or sometimes under the hood of the vehicle. These are places where you can access the specifications of the vehicle in question.

Without detailed specifications and diligently noted registration numbers, there’s no way to confirm which vehicle is being sold, gifted, or traded in. Feel free to attach recent photos of the vehicle as a supporting document to the bill.

Vehicle details:

• Year: Specify the model’s exact year of manufacture
• Make: Enter the name of the manufacturer, e.g., Honda or Ferrari
• Model: Enter the specific model name and number, like Sportsman 470
• Engine Type: State the engine layout and key specs (e.g., “Inline-4 DOHC 2.0L, turbocharged”). You’ll find this in the owner’s manual, spec sheet/window sticker, under-hood emissions label, or on the engine cover/badge. 
• Fuel Type: Specify the exact fuel or power source (e.g., Gasoline/Petrol, Diesel, CNG, LPG, Plug-In Hybrid, Battery Electric, Hydrogen, etc.). Check the fuel-filler door or cap label, owner’s manual, window sticker, or emissions label. Warning: Make sure to match what’s printed—using the wrong fuel can void warranties or damage the engine.
• Color: Enter the primary exterior color. You can use secondary descriptions such Matte, Metallic, or Neon for better identification of the color.
• VIN: Diligently note down the full 17-character Vehicle Identification Number — usually found on the frame
• Odometer Reading: Carefully and honestly record the number of miles as they appear on the odometer. Simply write Not Applicable” if the vehicle does not have an odometer
• Engine No.: Note the engine serial number, usually stamped directly on the engine casing
• Registration No.: The vehicle’s current official registration number, if registered

Define the terms of the sale

Are taxes included in the purchase price?

A Bill of Sale ensures proper reporting, prevents over-taxation, and protects both parties during audits. Make sure to clarify whether the paid purchase price is inclusive of government taxes or not. 

Your document must also specify who is responsible for paying the tax: the seller, the buyer, or a third party. Buyers are usually responsible for paying sales or use tax when registering the vehicle.

Note that if the vehicle is a gift, taxes are typically based on fair market value.

Does the buyer have a right to a pre-sale inspection?

A bill of sale protects the buyers through an inspection clause, giving them a chance to test-run the item before finalising the sale.  For example, if you are buying a boat, you might have the boat inspected by a certified marine surveyor who performs a detailed inspection of its structure, systems, engine, and overall seaworthiness.

Legal warranties, disclosures & disclaimers

Clarifying any active warranties or guarantees is essential at the time of sale. If the vehicle experiences performance issues after purchase, the buyer may be eligible for coverage under a warranty provided by the manufacturer, insurer, seller, or a third party.

Use this section of a bill of sale to clarify if a warranty is provided, or if the vehicle is being sold as-is – that is, in its current condition with the seller making no promises to fix, repair, or maintain the vehicle after the sale or transfer.

What’s an Odometer Disclosure Statement?

An odometer statement is required under U.S. federal law for any vehicle under 10 years old and weighing less than 16,000 lbs. Sellers are obliged to disclose if the device has exceeded its mechanical limits or has been altered or tampered with. In the event of failure to do so, fraud laws may apply, leading to potential civil fines or criminal penalties, depending on your state or locale.

Our Bill of Sale packages come with a built-in Odometer Disclosure Statement, making it easy to include key transaction details—such as vehicle description, mileage, and party information—along with required signatures. This helps prevent odometer fraud while ensuring compliance with federal, state, and local laws.

What Is Notarization?

Some U.S. states require that the Bill of Sale be signed in the presence of a Notary Public to make the transaction legally valid. While notarization isn’t always mandatory, it’s highly recommended, especially when dealing with high-value vehicles or when required by your local DMV.

Why notarize? Notarization adds an extra layer of legal security to the sale transaction, helping prevent fraud and ensuring that both parties can be held fully accountable under the stated terms of the agreement.

What Must Be Attached to a Bill of Sale

Supporting documents are more than paperwork—they’re your safety net. When attached to your Bill of Sale, they help tally vital information, protect both parties, and keep future legal disputes at bay.

Here’s a comprehensive list of supporting documents you might need to attach to a vehicle bill of sale:

• Document Name
• Certificate of Title
• Previous Bill of Sale 
• Copy of Buyer’s Photo ID
• Copy of Seller’s Photo ID
• Lien Release Letter
• Inspection Certificate
• Off-Highway Vehicle or Trail Permit 
• Emission Compliance Certificate
• Odometer Disclosure Statement
• Proof of insurance
• Proof of payment
• Warranty document
• Recent photographs of the vehicle
• Notarization Form
• Maintenance Records
• Operating Manual for Users
• Tax Records
• Power of Attorney

What You Need to Know as a Vehicle Buyer or Seller

Here are some things to note & watch out for before selling, buying, or otherwise legally transferring title or ownership of a vehicle:

• State Requirements: Before finalizing a sale, make sure to check with the relevant government departments to see if there are any state-specific laws, rules, regulations, exemptions, procedural or substantive requirements, or other important considerations that apply to you. 
• Fraud Laws: Lying about odometer readings is against the law. Fraud laws may apply if you tamper with the odometer or fail to disclose an important defect or fault in the vehicle. This is because sellers are legally obliged to act in good faith when describing the vehicle’s condition to a potential buyer.
• Theft Check: Always verify the Vehicle Identification Number (VIN) to ensure it matches the details of the vehicle certificate of title. You can use NICB VINCheck to ensure the vehicle is not stolen or salvaged. This precautionary measure is especially needed or particularly recommended when buying from private sellers.
• Proof of Title: Selling without a title is illegal in nearly all states. If you are buying, it’s important to check for the current owner’s valid legal title or other ownership document to ensure they have the right to legal transfer title and ownership rights in the first place
• Notarization Rules: Check with your local laws to see if you require notarization or any other additional forms for titling, registration, or off-road certification.
• Tax Exemptions: Check the IRS website to confirm if your new vehicle may be exempt from government taxes, such as during sales involving agricultural or farm tractors. Similarly, vehicles purchased by members of foreign diplomatic missions are also exempt from any government sales tax. 
• Lien: If the vehicle was previously financed by a bank or private lender, then the loan or lien must be paid off, and the lienholders must release their claim before the title can be legally transferred.
• Insurance: All U.S states (except NH) require minimum liability insurance to register and drive. Driving without insurance can result in license suspension, fines, or even jail time!
• Emission Laws: New vehicles must be EPA-certified before sale. Check out EPA regulations for emission standards for all vehicles sold in the U.S.
• Vehicle-specific Rules & Regulations: Note that legal requirements for registration or use may vary depending on the speed or engine power of a vehicle. For example, a low-speed electric scooter may not require registration in some states, while a high-powered dirt bike or ATV might need full registration, insurance, and compliance with road safety standards.
• Release of Liability: Sellers must notify the DMV that the vehicle has been sold by filing a Notice of Transfer or a Release of Liability. This protects them from being liable for things like parking tickets, tolls, accidents, or any illegal use of the vehicle after the sale or transfer has occurred.

Here are common legal pitfalls to avoid for both buyers & sellers:

• Selling without a title
• Not disclosing lien or salvage history
• Not reporting the sale to your local DMW office
• Using fake or forged documents, such as fake Inspection reports or false certificates of title
• Not disclosing odometer readings

8 Useful Tips for Anyone Using a Bill of Sale to Sell or Purchase Vehicles in the U.S.

• To avoid human error, make sure you note down numerical terms such as license numbers, serial and registration numbers, and other vehicle specifications as accurately and diligently as possible.
• To avoid inconvenience or delays in communication later, make sure you are adding updated contact information of both parties, such as current residential or business addresses, verified telephone numbers, and active Email IDs.
• Name, label, and reference each supporting document to facilitate the smooth exchange of information between the seller, buyer, and third parties, such as insurers or government agencies.
• If you’re using this Bill of Sale outside the U.S., you can easily insert the appropriate currency symbol using the editable file. For non-monetary exchanges (e.g., trade or barter), you can use the alternative version of the templates we offer (Version II).
• Always attach proof of payment as a supporting doc, such as a receipt, check copy, or bank transfer record.
• If there are active warranties on the vehicle, the buyer must be provided with the relevant documentation to ensure they can benefit from these in the future.
• Even in states where notarization is not required by law, you are still advised to notarize your Bill of Sale, as this makes the document harder to dispute in a court of law.

Final Thoughts

Whether it’s a private transaction, a dealership sale, or any other type of legal ownership transfer, you always need a valid bill of sale to lay down the terms & conditions of the sale for both parties. Without a permanent written record of the sale transaction, you can not prove that a certain sale took place on a particular date and location on certain specific terms. In this way, a bill of sale protects both parties from legal troubles, misrepresentations, or costly surprises down the road if the vehicle turns out to be faulty. 

To ensure quick & easy vehicle sales, download our free template NOW, and ensure legal transparency for all parties involved!