Car Bill of Sale

To purchase a vehicle or get your current one fixed, you will need to sign a car bill of sale. This contract serves as your proof that the dealership is legally obligated to sell you the vehicle. It also keeps both parties on equal ground and protects consumers from unfair practices by dealerships and manufacturers. If you are interested in purchasing a new or used auto, read this article to learn how this essential legal document works!

Car Bill of Sale Template

Motor Vehicle Bill of Sale by State

What is a Car Bill of Sale

A car bill of sale is a legal document that proves that a dealership and buyer have agreed to purchase a vehicle. It is also known as an auto sale contract or title transfer.

This contract doesn’t need to be written by hand, but it must be in writing. It should have all relevant information, including the vehicle’s make, model, year, and VIN number.

The car bill of sale should also include the selling price of the car and the signatures of both parties involved in the transaction. Both parties must sign this document for it to be valid.

Why Do You Need a Car Bill of Sale?

A car bill of sale protects consumers from unfair practices by dealerships and manufacturers. In addition to proving ownership, this document ensures that both parties are on equal ground regarding legal rights and obligations regarding the vehicle being sold (or traded).

For example, if something happened during or after your purchase (such as a defect in the car or a dispute with the dealership), this document will help you seek compensation. It also shows that you are free to sell the vehicle to someone else.

What Should Be Included in a Car Bill of Sale?

A car bill of sale should include:

• The date of the sale or transfer and the location where it took place (e.g., dealership)

• The names, addresses, and signatures of both parties involved (buyer and seller) – if there is a lienholder, their name must be included. In some states, it’s also necessary to have their contact information. The lienholder will keep all current titles from previous owners until all payments have been made. Then, they will send a title transfer form to the DMV for processing when this happens.

• The vehicle’s year, make, model, VIN (vehicle identification number), and odometer reading. If you’re the new owner, you’ll need to transfer the title to your name. The seller should provide this information on their signed bill of sale.

• If applicable, the vehicle’s purchase price or sales price of the trade-in.

• If there is a lienholder on the car, they must also sign a statement that they were paid in full or released from liability. This ensures that there are no unpaid debts on the vehicle and that it is available for purchase by you.

How to Obtain a Car Bill of Sale

The car bill of sale is a legal document that must be filled out and signed before a notary public or DMV employee. They will verify the identity of everyone who signs it and make sure that you have all the information required to transfer ownership of the vehicle.

To obtain a car bill of sale, you can:

In-person

• Go to your local DMV office with the buyer, former owner, and other parties involved. Get it notarized at the DMV office or take it to a notary public for signature. Bring one copy when you register your vehicle at your local DMV office.

• The second copy will be sent back to you by mail. Note: Your state may require an odometer reading on your application form for it to be processed correctly by the DMV. For example, California requires odometer readings on all bills of sale as verification that the seller is not overstating the mileage.

• Go to a DMV office and ask for a car bill of sale form. You can also request it by mail or fax. If you send in a request by mail, include your name, address, date of birth, vehicle identification number (VIN), and the names of everyone involved in the transaction.

• Your state may require an odometer reading on your application form for it to be processed correctly by the DMV. For example, California requires odometer readings on all bills of sale as verification that the seller is not overstating the mileage.

Obtain by phone

To request a car bill of sale over the phone:

Call your state DMV and ask for the forms department. Tell the representative which form you will need and what information you are required to submit. Make sure you have a pen ready to complete the form with your personal information and vehicle details. If you have any questions, be sure to ask them before hanging up.

By Mail

To request a car bill of sale by mail:

• Send your request to the DMV in the state where you purchased the vehicle. Request a car bill of sale form and include your name, address, date of birth, vehicle identification number (VIN), and the names of everyone involved in the transaction so that the DMV can verify your identity.

• Be sure to sign and date the form. If you are sending in multiple forms, make sure you have included all information for each receiving a copy of the form. In addition, include all payment methods for fees associated with processing your application. If you are mailing out multiple copies, have one copy for each applicant on file.

• Please send your completed forms with payment for fees by mail or deliver them to a DMV office location within ten days after purchasing your vehicle. If you fail to send in this information within ten business days, you may have to pay additional late fees and fines at a later time if the DMV is unable to locate your form.

By Fax

To send a car bill of sale by fax:

• Fax your request to the DMV in the state where you purchased the vehicle. Include your name, address, date of birth, VIN, and the names of everyone involved in the transaction. Be sure to sign and date the form. If you are sending in multiple forms, make sure you have included all information for each receiving a copy of the form.

• In addition, include all payment methods for fees associated with processing your application. If you are mailing out multiple copies, have one copy for each applicant on file. Faxed documents are considered received five business days after they are sent, so make sure to send them at least ten business days after purchasing your vehicle to ensure that they arrive on time.

FAQ

A car bill of sale is a legal document used to transfer ownership of a vehicle from one individual to another. You must include the information listed above in your car bill of sale form, so you do not encounter any issues with the DMV later down the road.

You can create a bill of sale using the DMV’s official form in your state, or create your own.

If you choose to create your bill of sale for a car form, you can check template examples online. Most states have a form specific to the state. Most of these state-specific online bills of sale for car templates are free and printable.

You can also download a blank bill of sale form if you want to make your own, although you run the risk of not including information required by a specific state.

• Complete each section on the vehicle title in full, including any lienholder information, seller’s signature, and date, and buyer’s signature and date.
• Sign any attachments (such as personal property sales tax statement or vehicle identification number (VIN) certificate).
• Complete all blanks on the form as appropriate, indicating that the vehicle is not subject to a security interest. If applicable, indicate that the vehicle is subject to an order for repossession by a lienholder.
• Include a Recreational Vehicle (RV) designation if the title shows a camper or trailer.

Conclusion

The DMV bill of sale is a common form used to transfer ownership of a vehicle from one individual to another. You must include the information listed above in your car bill of sale form, so you do not encounter any issues with the DMV later down the road.

It is not unusual for situations to come up after a sale is complete. Be sure and keep your bill of sale document in a secure place. If something does happen and you need to produce a bill of sale, you will be glad to have done this right.