Bill Of Sale vs. Title: Understanding the Difference (2026)
Contributor
Reviewed By Adam Ramirez, J.D.
Editor
Summary
- The bill of sale and the vehicle title are two distinct documents
- The bill of sale is not always required, but the title is a necessity
When getting ready to sell a vehicle, you may have heard about filing a vehicle bill of sale and the need to transfer the title. But what is the difference when it comes to bill of sale vs. title? Learn more about these documents and why they may be able to help you avoid liability if the vehicle is involved in an accident.
What Is a Vehicle Title?
A vehicle title is a state-issued legal document that officially declares who the owner of the vehicle is. It includes the VIN, the owner’s name, contact information and the odometer reading. You have to transfer the title of a car if you sell it.
What Is a Bill of Sale?
The bill of sale functions as a record of the sale. It doesn’t legally transfer the vehicle to the new owner, but it can be used to prove that ownership has changed. This is vital if the vehicle is involved in a crash because it shows that it was not under your control.
Vehicle Title vs. Bill of Sale: Key Differences
When considering the differences between bill of sale vs. title, remember that the title is the official, government-issued document that proves legal ownership. You need this document to drive the car and to register it. The DMV issues the title.
One significant difference when it comes to a bill of sale vs. title is that the bill of sale is typically needed in private car vehicle sales. In Colorado, for instance, the buyer must obtain a bill of sale during private transactions.
Is a Bill of Sale Proof of Ownership?
No, the bill of sale is not proof of ownership. It is only a record of the transaction. The title is what legally states who the new owner is.
When Is a Bill of Sale Needed?
A bill of sale is typically necessary when the sale involves out-of-state parties, when there may be issues with the title or when state laws require it. In Georgia, for example, you need a bill of sale if the car is from 1985 or older and doesn’t require a title.
How to Sell a Car Without a Title
It can be very challenging to sell a car without a title, so it’s always important to contact the DMV or lender for a duplicate of this document. In some instances, such as when a vehicle is older, you may be able to use the bill of sale to demonstrate ownership.
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Frequently Asked Questions
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The pink slip is the car’s title.
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The lender will hold the vehicle title.
