Vehicle Bill of Sale Template

If you’re buying or selling a vehicle, you may need to complete several documents, such as a vehicle bill of sale. Although not all states, such as Florida, require this document, it's a good idea to prepare one because it offers proof of the sale. Take a closer look at how to write a bill of sale and why it’s essential.

What Is a Vehicle Bill of Sale?

A vehicle bill of sale records the transfer of ownership of a car or any other vehicle from the seller to the buyer. It’s similar to the contract you would sign at a dealership if you bought the car there.

But what is the difference between a bill of sale vs. title, then? The title is the official document proving ownership of the vehicle, while the bill of sale functions more like a receipt.

When Do You Need a Vehicle Bill of Sale?

Some states require a vehicle bill of sale whenever you purchase a car to be able to formally transfer ownership and to register it with the Department of Motor Vehicles (DMV). It’s an important document when selling or buying a vehicle privately.

Why Use a Vehicle Bill of Sale?

A bill of sale can protect you against liability in personal injury cases if the vehicle is involved in any type of accident. It’s also a helpful document for DMV registration in many states and can be useful for tax purposes. Additionally, it contains an as-is clause, which helps prevent disputes about the vehicle’s condition.

What Does a Vehicle Bill of Sale Contain?

The vehicle bill of sale generally includes the following:

• Name and address of the buyer and seller
• VIN
• Purchase price
• Date of the sale
• As-is clause
• Signatures of both parties

It should also contain a detailed description of the vehicle.

State-Specific Requirements and Notarization

Most states do not require a bill of sale, while others have you prepare one and get it notarized to be legally binding. States like Maryland require notarization, and others like New York require that the buyer sign the bill of sale even if the vehicle is a gift.

When it comes to gift transfers, state-specific laws may apply regarding sales taxes. Texas, for example, charges a flat gift tax fee of $10, but only for gifts between spouses, children/stepchildren, siblings, grandparents, parents/stepparents, guardians, certain trusts and 501(c)(3) organizations.

Usually, a gift of a vehicle to a non-family member will be taxed as a sale.

California can exempt smog certification in transfers between immediate family members.

How to Fill Out a Vehicle Bill of Sale

To fill out the vehicle bill of sale as the seller, you will need to provide all of the information regarding the vehicle, including the VIN. You will have to add the exact price and all of the pertinent information regarding the buyer and seller.

Common Mistakes to Avoid When Preparing a Bill of Sale

The most common mistakes to avoid are providing inaccurate information on the parties involved and not getting signatures. Not verifying lien details is another mistake.

Find Legal Help Today

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