Do You Need a Bill of Sale for a Used Car?

If you're buying or selling a used car from a private party, you've probably wondered whether you actually need a bill of sale. The short answer: some states require one, and even where it isn't required, it's one of the smartest pieces of paper you can have. Here's why — and how to create one for free in a couple of minutes.

The short answer

Whether a bill of sale is legally required for a used-car sale depends on your state. Several states require a bill of sale as part of registering the vehicle or calculating sales tax; others rely primarily on the signed title. But required or not, a bill of sale protects both the buyer and the seller — so it's worth having in every private sale.

Why it matters — even when it's not required

For the seller: it ends your liability

Once you sell a car, you don't want to be on the hook for what happens next. A dated, signed bill of sale is your proof that you transferred ownership on a specific day. If the buyer racks up parking tickets, toll violations, or worse before they register the car in their name, your bill of sale shows the vehicle was no longer yours.

For the buyer: it's proof of purchase

The buyer needs to prove what they paid and that they legitimately bought the car — often to register it, to calculate sales tax, or simply to have a record if a dispute comes up later. The bill of sale is that proof.

For both: it records the deal in writing

Price, odometer reading, condition, "as-is" status — putting these in writing prevents the classic "that's not what we agreed" argument after the fact.

What a used-car bill of sale should include

A car bill of sale needs more detail than one for a general item. Make sure yours covers:

• Buyer and seller — full names and addresses.
• Vehicle details — year, make, model, body type, and color.
• VIN — the 17-character Vehicle Identification Number. This is essential.
• Odometer reading — the current mileage (see the federal note below).
• Sale price and payment method — the agreed amount and how it was paid.
• "As-is" statement — private used cars are almost always sold as-is, with no warranty.
• Title status — whether the title is clean, salvage, or rebuilt, and when the title will change hands.
• Date and signatures — both parties sign and date, with printed names.

The federal odometer disclosure rule

Federal law requires the seller to disclose the vehicle's mileage at the time of transfer for most vehicles less than 20 model years old. A good vehicle bill of sale builds this odometer statement in automatically, so you don't have to remember the exact wording.

Bill of sale vs. the title — what's the difference?

People often assume the bill of sale and the title are the same thing. They're not. The title is the official state document proving legal ownership; transferring it (signing it over) is what actually moves ownership of a titled vehicle. The bill of sale is the record of the transaction — who, what, when, how much. For a car sale you generally need both: sign over the title and complete a bill of sale, then finish your state's DMV process.

Does a car bill of sale need to be notarized?

In most states, no — a bill of sale is valid once both parties sign it. Louisiana is the notable exception, requiring a notarized bill of sale for vehicle transfers, and a few states may ask for notarization in specific cases. If you're unsure, our tool lets you add an optional notary block and witness line. See our full guide on when notarization is actually needed for details.

Frequently asked questions

Related reading: How to Write a Bill of Sale: A Step-by-Step Guide →  ·  When Does a Bill of Sale Need to Be Notarized? →  ·  What Does a Bill of Sale Look Like? →  ·  Horse Bill of Sale: What to Include →

Ready to make yours? Create your free vehicle bill of sale now →