Do I Need A Bill Of Sale To Sell My Car?
Many states require a bill of sale when you sell your car to a private buyer. Even if your state doesn't require it, you should complete one for your own protection.
PrivateAuto makes it easy with an official bill of sale for your state. You and the buyer simply review the details, then digitally sign the bill of sale after the buyer inspects the vehicle.
No printing or scanning; sign electronically in the PrivateAuto app. You always have the signed document as a record in your dashboard, should you ever need it.
No printing or scanning; sign electronically in the PrivateAuto app. You always have the signed document as a record in your dashboard, should you ever need it.
What is a Bill of Sale?
The bill of sale form is a legal document that confirms the ownership transfer of a vehicle from you to the buyer.
Whether or not your state requires it, a bill of sale is a really smart idea. It memorializes the VIN, selling price, vehicle mileage, and other key details—and it has the buyer’s signature. Here’s how it can protect you:
1. Release of liability: a bill of sale proves you have transferred ownership of the vehicle. This helps protect you from any future liability related to the vehicle's use, such as traffic violations or accidents.
2. Protection against fraud: the bill of sale helps protect you from potential fraud by establishing the date of the private sale and the identity of the buyer, ensuring that any future issues are directed toward the new owner.
3. Tax purposes: the bill of sale documents the transaction's details, including the sale price, which may be required for tax reporting and record-keeping purposes.
4. Peace of mind: the bill of sale offers you peace of mind, knowing that the transaction is documented and legitimate. You have a legal record of the transaction should you ever need it.
Similar to a receipt from any transaction, a bill of sale serves as proof that you and the buyer have entered into a contract. While the new owner takes the certificate of title with them, the bill of sale remains with you, providing evidence of the sale and confirming that you are no longer responsible for the vehicle.
Whether or not your state requires it, a bill of sale is a really smart idea. It memorializes the VIN, selling price, vehicle mileage, and other key details—and it has the buyer’s signature. Here’s how it can protect you:
1. Release of liability: a bill of sale proves you have transferred ownership of the vehicle. This helps protect you from any future liability related to the vehicle's use, such as traffic violations or accidents.
2. Protection against fraud: the bill of sale helps protect you from potential fraud by establishing the date of the private sale and the identity of the buyer, ensuring that any future issues are directed toward the new owner.
3. Tax purposes: the bill of sale documents the transaction's details, including the sale price, which may be required for tax reporting and record-keeping purposes.
4. Peace of mind: the bill of sale offers you peace of mind, knowing that the transaction is documented and legitimate. You have a legal record of the transaction should you ever need it.
Similar to a receipt from any transaction, a bill of sale serves as proof that you and the buyer have entered into a contract. While the new owner takes the certificate of title with them, the bill of sale remains with you, providing evidence of the sale and confirming that you are no longer responsible for the vehicle.
Do I Sign the Bill of Sale Before or After the Payment?
Should you sign the bill of sale before receiving payment? Or could that leave you vulnerable to a fraudulent buyer making off with your car and not paying you for it?
If you don’t sign the bill of sale, the buyer may not feel comfortable parting with their money. They have as much reason to distrust you as you have to distrust them. It’s a catch-22, but we’ve solved it.
With PrivateAuto, you don’t have to worry about payment timing or the order of operations. Our process protects both parties in an orchestrated, step-by-step workflow.
Here’s how it plays out:
1. Inspect the vehicle together, and then both you and the buyer electronically sign the bill of sale form in our mobile app
2. Each of you gets notified that the other party has signed the bill of sale
3. The buyer is prompted to release payment, and feels confident doing so, given that you have signed a legally binding document
4. Payment immediately appears in your PrivateAuto Pay account
5. You confirm payment, then sign the title over to the buyer
Our transactional infrastructure protects both parties and solves the problem of trust between strangers.
If you don’t sign the bill of sale, the buyer may not feel comfortable parting with their money. They have as much reason to distrust you as you have to distrust them. It’s a catch-22, but we’ve solved it.
With PrivateAuto, you don’t have to worry about payment timing or the order of operations. Our process protects both parties in an orchestrated, step-by-step workflow.
Here’s how it plays out:
1. Inspect the vehicle together, and then both you and the buyer electronically sign the bill of sale form in our mobile app
2. Each of you gets notified that the other party has signed the bill of sale
3. The buyer is prompted to release payment, and feels confident doing so, given that you have signed a legally binding document
4. Payment immediately appears in your PrivateAuto Pay account
5. You confirm payment, then sign the title over to the buyer
Our transactional infrastructure protects both parties and solves the problem of trust between strangers.
Which States Require a Motor Vehicle Bill of Sale?
Here are the states where you’re legally obligated to have a bill of sale when selling a car:
1. Alabama
2. Arkansas
3. Connecticut
4. Georgia
5. Hawaii
6. Louisiana
7. Maine
8. Maryland
9. Montana
10. Nebraska
11. Nevada
12. New Hampshire
13. New Mexico
14. Ohio
15. Rhode Island
16. Vermont
17. West Virginia
18. Wyoming
Other states, such as Alaska, Delaware, and South Carolina, require a bill of sale if the vehicle title does not have space for recording the sale price and other sale details.
1. Alabama
2. Arkansas
3. Connecticut
4. Georgia
5. Hawaii
6. Louisiana
7. Maine
8. Maryland
9. Montana
10. Nebraska
11. Nevada
12. New Hampshire
13. New Mexico
14. Ohio
15. Rhode Island
16. Vermont
17. West Virginia
18. Wyoming
Other states, such as Alaska, Delaware, and South Carolina, require a bill of sale if the vehicle title does not have space for recording the sale price and other sale details.
What Info Needs to Be On a Bill of Sale?
Each state might have different requirements for what must be included in a bill of sale, but all include such pertinent info as the names and addresses of the buyer and seller, vehicle info, and purchase price.
Here’s a more exhaustive list of what most states’ bills of sale include:
Full name
Address
Contact information (phone number and/or email address)
Full name
Address
Contact information (phone number and/or email address)
Make (manufacturer)
Model
Year
Body style
Vehicle Identification Number (VIN)
Odometer reading (mileage)
Color
Type of vehicle, description, including condition
Purchase price (in words and numbers)
Date and time of sale (month, day, and year)
Payment method (cash, check, money order, or electronic transfer)
An acknowledgment that the new owner purchases the vehicle with or without a warranty, as the case may be
Disclosure of known defects or issues with the vehicle
Any agreed-upon repairs or maintenance to be performed before or after the sale
Terms of a return policy, if any
Any other specific terms agreed upon by both parties
Both the buyer and the seller should sign and print their names
The date of signing
Witness signatures, if required by your state, or if desired for extra validation
Notarization (if required or desired—some states require the bill of sale to be notarized, while others don’t)
Carefully review key information, such as the VIN, before signing to be sure there are no errors in the document. Serious errors could void the bill of sale or stall the title transfer process until they’re corrected.
Here’s a more exhaustive list of what most states’ bills of sale include:
•
Seller's info:
Full name
Address
Contact information (phone number and/or email address)
•
Buyer's info:
Full name
Address
Contact information (phone number and/or email address)
•
Vehicle info:
Make (manufacturer)
Model
Year
Body style
Vehicle Identification Number (VIN)
Odometer reading (mileage)
Color
Type of vehicle, description, including condition
•
Transaction details:
Purchase price (in words and numbers)
Date and time of sale (month, day, and year)
Payment method (cash, check, money order, or electronic transfer)
•
Additional terms and conditions (if any):
An acknowledgment that the new owner purchases the vehicle with or without a warranty, as the case may be
Disclosure of known defects or issues with the vehicle
Any agreed-upon repairs or maintenance to be performed before or after the sale
Terms of a return policy, if any
Any other specific terms agreed upon by both parties
•
Signatures:
Both the buyer and the seller should sign and print their names
The date of signing
Witness signatures, if required by your state, or if desired for extra validation
Notarization (if required or desired—some states require the bill of sale to be notarized, while others don’t)
Carefully review key information, such as the VIN, before signing to be sure there are no errors in the document. Serious errors could void the bill of sale or stall the title transfer process until they’re corrected.
PrivateAuto Makes the Bill of Sale Easy
When you sell your car via PrivateAuto, we include your state’s official bill of sale as part of our in-app process. Both buyer and seller will e-sign the document at the appropriate stage in the transaction, after which the buyer can transfer payment and you can sign over the title.
Plus, we give you a whole lot of transactional tools to make your sale fast, safe, and easy. To get started, create your vehicle listing.
Plus, we give you a whole lot of transactional tools to make your sale fast, safe, and easy. To get started, create your vehicle listing.
Bill of Sale FAQ
What paperwork do I need to sell my car privately in NY?
To sell your car privately in New York, you need to provide the following documentation:
- Vehicle title (certificate of title)
- Odometer disclosure statement
- Notice of sale (form MV-912)
- VIN verification
- Lien release (if applicable)
- Emissions and safety inspection
- Proof of identity
Unless you live in California or Minnesota, you will also need to remove your license plates. In most states, you can transfer them to a different vehicle or surrender them at your local DMV office.
Check out our complete guide to license plate disposal to learn more about what to do with your old plates.
- Vehicle title (certificate of title)
- Odometer disclosure statement
- Notice of sale (form MV-912)
- VIN verification
- Lien release (if applicable)
- Emissions and safety inspection
- Proof of identity
Unless you live in California or Minnesota, you will also need to remove your license plates. In most states, you can transfer them to a different vehicle or surrender them at your local DMV office.
Check out our complete guide to license plate disposal to learn more about what to do with your old plates.