How To Write A Bill Of Sale For A Car (2026)

What Is a Bill of Sale for a Car?

A car bill of sale affirms a car sale. In some cases, a buyer may need to present it when registering the car. A seller might need to file it to release themselves from legal liability.

Why a Bill of Sale Matters

A bill of sale serves two purposes. First, it’s a receipt that acknowledges payment and the seller’s intent. Without this document, a seller might argue that they simply leased the car.

Second, it contains the terms of the sale, forming an enforceable contract. Without written terms, a party might dispute the agreement.

What to Include in a Vehicle Bill of Sale

Although requirements vary by state, you’ll usually need to include the following on a vehicle bill of sale:

• Transaction date
• Vehicle description, including VIN, make and model
• Odometer reading
• Party names and addresses
• Price

The Odometer Disclosure

The odometer reading is required by federal law. It must include mileage (in full miles), the transfer date and the names and addresses of buyer and seller.

There are some exceptions. No reading is needed:

• After 10 years (for cars from 2010 or earlier)
• After 20 years (for cars from 2011 or earlier)

You don’t need a reading for cars with a gross vehicle weight rating (GVWR) over 16,000 pounds.

How to Find or Create a Bill of Sale Form

In many states, you don’t need to know how to write a bill of sale for a car because the state has an official form. For example, the Utah bill of sale form is accessible online.

Does the Bill of Sale Need to Be Notarized?

Some states require notarization. For example, in Louisiana, a bill of sale must be signed before a notary public and two witnesses, and the notary and witnesses must also sign. In California, no notarization is needed.

How to Handle Warranty Information in a Bill of Sale

Some states impose implied warranties on used car sales. Sellers who don’t want to provide a warranty must include a disclaimer or the words “as-is.” Buyers who want a warranty against vehicle defects should include warranty terms.

If a seller wants to exclude the warranty of merchantability, they have to specifically and conspicuously use the word “merchantability” in writing. However, disclaimers don’t ever protect sellers who misrepresent vehicles.

Common Mistakes to Avoid When Writing a Bill of Sale

Common mistakes include vague vehicle descriptions and missing signatures. The most serious error is deliberately misstating the price to evade sales tax, which may constitute a crime. Another common mistake is not keeping an original copy.

For a seller, the costliest mistake is failing to file a release of liability. Each state has unique requirements. For instance, in California, sellers have to file a Notice of Transfer and Release of Liability (NRL) with the California DMV within five days of the sale.

Other Requirements for Transferring Vehicle Ownership

In most states, a buyer will need to file a state title application with the state DMV, provide a federal odometer disclosure and pay any required taxes and fees.

Deadlines After You Sign

In many states, there are different deadlines for buyers and sellers.

For example, in California, a buyer has 10 days to transfer ownership with the DMV. The seller has five days to file a release of liability.

In Texas, a buyer must apply for a new title within 30 days of buying the vehicle. They have 60 days to apply if they’re in active military service.

How to Add Additional Terms to a Bill of Sale

The bill of sale can include additional contract provisions, such as payment terms. When adding these provisions, describe them clearly, using plain language.

Have More Legal Questions About Buying or Selling a Car?

If you have legal questions about buying or selling a car, ConsumerShield can help. Explore our online tools and resources today.