What Is a Bill of Sale?

A bill of sale is a legal document that records the transfer of ownership of an item from a seller to a buyer. For motor vehicles, it serves as a receipt documenting the sale date, purchase price, vehicle details, and the identities of both parties.

The term applies to many types of property, but vehicle bills of sale are among the most common because DMVs use them during title transfer and registration.

A bill of sale for a car specifically documents a private party motor vehicle transaction. It includes the VIN, year, make, model, odometer reading, and sale price.

It does not replace the certificate of title. The buyer must still complete title transfer with the state DMV to legally register the vehicle.

A bill of sale protects both buyer and seller by creating a written record of the transaction terms. It helps the buyer register the vehicle and helps the seller prove they no longer own it.

DMVs commonly use the purchase price listed on the bill of sale to calculate sales tax on private party transfers.

Standard fields include seller and buyer names, VIN, year, make, model, body style, color, odometer reading, sale date, purchase price, and both signatures.

Federal law requires odometer disclosure for vehicles less than 20 years old. Many states also expect governing law language and as-is clauses for private sales.