Vehicle Bill Of Sale In Illinois: Definition And Use (2026)

What Is an Illinois Vehicle Bill of Sale?

A bill of sale contains essential information about the transaction and the parties involved, from contact details to the vehicle’s condition. It shows payment occurred and that the seller agreed to the sale.

Additionally, it protects the seller from being held responsible for car accidents or crimes, like theft, in which their vehicle is involved. For the buyer, the bill of sale helps prevent disputes and hidden fees.

Is a Bill of Sale Required in Illinois?

A bill of sale isn’t required in Illinois. Parties can agree to an oral sales contract without writing a bill of sale, but under Illinois’ Uniform Commercial Code § 2-201, items sold for $500 or more cannot be enforced without a contract.

The bill of sale protects both parties if the deal falls through before the delivery of the vehicle. Moreover, you don’t need a bill of sale to transfer title or obtain an Illinois car registration.

Still, it can be an important document to have in the event of a dispute later, so buyers and sellers should keep a copy for their records. For example, if there are issues with the reported price on the RUT-50, you have evidence of what you paid for the car in the bill of sale.

Licensed used vehicle dealers are the exception, since state law says they must furnish every buyer with a properly executed bill of sale, so whether you need one in Illinois depends on who you buy from.

What to Include in an Illinois Vehicle Bill of Sale

The bill of sale should at least describe the vehicle, name the parties, state the sales price and acknowledge payment.

While there aren’t legal requirements for a vehicle bill of sale in Illinois, consider including the following:

• Names of the buyer and seller
• Sales date
• Price
• Year, make, model and VIN
• Condition, including “as-is” terms
• Buyer’s and seller’s addresses
• Odometer reading

Federal law requires an odometer disclosure when most vehicles change hands. Exceptions may include 2011 or newer vehicles once they are 20 years old. Model year 2010 and older vehicles may be exempt after 10 years. Vehicles over 16,000 lbs GVWR are also exempt.

It can still be a good option to record the odometer reading on the bill of sale.

Special Conditions to Note (As-Is and Salvage Sales)

You might want to include any special conditions on the sale, though. For example, if the vehicle has known problems, the bill of sale might state that the car was sold “as-is.”

Similarly, if you sold a vehicle with a salvage title because it was stolen or declared a total loss, the bill of sale might note that the car was salvaged.

How to Handle Liens on an Illinois Vehicle

Vehicles subject to liens cannot be sold without the lienholder’s approval. If you want to sell a vehicle subject to a lien, you’ll typically pay off the loan and obtain a lien release before selling it.

How to Transfer Title and Register a Vehicle in Illinois

Dealerships usually register vehicles on behalf of buyers. After a private sale, however, the seller must sign the assignment and warranty of title section on the certificate of title. They should give this to the buyer.

To register a vehicle, the buyer needs the signed title, a registration application and a tax form (RUT-50, Private Party Vehicle Use Tax Transaction) reporting the sales price. Buyers have 20 days from the date they receive the vehicle and signed title to register it. The RUT-50 is due within 30 days.

The registration of title fee is $165.

Illinois Private Party Vehicle Tax

For purchases under $15,000, the tax depends on the vehicle’s age. For a one-year-old or newer vehicle, the tax is $465. An 11-year-old or older vehicle has a $100 tax.

For purchases of $15,000 or more, the tax is a flat amount depending on the price band:

• $30,000–$49,999.99: $1,600
• $20,000–$24,000: $1,100
• $15,000–$19,000: $850

Transferring a title from spouses, parents, children or siblings has a tax fee of $15. Late filings and late payment penalties will apply.

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