This document sometimes isn’t required if you’re living in certain states. The bill of sale is evidence that a transfer of ownership took place between parties. Here’s the paperwork you need to make the sale of a car a smooth process and fully compliant with state laws. While you can use it for any land vehicle, they are often used when someone wants to sell a car. If the buyer of the vehicle is involved in an accident or gets a speeding ticket, the seller can use the bill of sale to show that the vehicle is no longer theirs and they are not liable.

The title transfer will free the seller from the liabilities of the vehicle. Once the buyer signs the document and the relevant government authority processes it, they will have legal proof of ownership. But once you have the document, you will have legal ownership of the vehicle. A title could be considered a complementary document to the bill of sale because you can’t get it without one. Obtaining the title is the last step in the sales process. The seller is responsible for creating the bill of sale, and most states require a bill of sale to register the vehicle. It would have details of the sale and the vehicle, such as the date, the name of the seller and buyer, the type and color of the vehicle, the selling amount, and the VIN number. These documents are similar, but both are important in the sales process.Ī Vehicle Bill of Sale proves that a transfer between a seller and a buyer occurred. What’s the Difference Between a Vehicle Bill of Sale and a Title?Īfter purchasing a vehicle, there are two primary documents you need to have in your possession: the vehicle bill of sale and the title. It is commonly used for a car and can be referred to by other names: It is required to register a vehicle at the Department of Motor Vehicles (DMV). State DMV Locations and Bill of Sale FormsĪ Vehicle Bill of Sale is a legal document used to transfer ownership of a motor vehicle from one person to another.

How to Use a Vehicle Bill of Sale For Buying or Selling a Car.

A Bill of Sale serves as an official record that a car was sold on a specific date for a certain price. In exchange for a certain amount of money, the seller agrees to transfer ownership of the vehicle to the buyer. A Vehicle Bill of Sale is a legal document that records the sale of a car, motorcycle, or other vehicles between two parties - a seller and a buyer.

Simple used car bill of sale