32 Free Car Bill of Sale Templates – Fillable Forms – PDF

32 Free Car Bill of Sale Templates – Fillable Forms – PDF

It is common knowledge that when you buy or sell something, a document needs to confirm that transaction. This document reveals the nature of the sale, including the buyer and seller’s names, the product’s price, and other relevant information. Such documents are typically referred to as a bill of sale. Alternatively, a bill of sale can also be called a sales receipt or proof of car purchase.

Likewise, when buying or selling a car, a car bill of sale is an important document to have. It is a legal document highlighting the terms and agreement of a car sale and providing sufficient evidence that a car was sold.

This article will explore all you need to know about a bill of sale for cars document and how to get a template.

What is a Car Bill of Sale?

A car bill of sale is a legal document representing the transaction and transfer of the said car between a seller and buyer. The document is critical as it highlights the terms of the agreement between the persons involved in the car purchase.

The car bill of sale is proof that the vehicle was sold from one party to another. In addition, you will find details such as the amount of purchase, terms and conditions of sale, buyer and seller information, date of transfer, and other relevant information in the document’s contents.  The car bill of sale is typically signed after the buyer has paid in full and the seller has tendered the certificate of title to the buyer. 

Car bill of sale can also be referred to as:

  • Automobile bill of sale
  • Auto bill of sale
  • Vehicle sale receipt
  • DMV bill of sale
  • Car purchase agreement
  • Proof of purchase
  • Auto purchase agreement

Note: It is essential to point out that a car bill of sale involves the seller and the buyer. The seller is the company or individual selling the car, while the buyer is the individual or company making payments for the said car.

Importance of Car Bill of Sale

The car bill of sale is an important document that proves that a car was sold from one party to another in exchange for the money. It is a binding document that is necessary in the sale and purchase of a vehicle. Some of its relevance include:

Prevent disputes

If the car bill of sale is neither present nor signed into agreement during a car purchase, it is often deemed invalid. This means that disputes may occur over the vehicle’s ownership or condition in the nearest future. For instance, the seller might sue for theft after selling, and the law might support their claims without proper documentation. The buyer can also be liable to pay for fines or damages to the car after payment has been completed if there’s no bill of sale present. The document clearly states the present condition of the vehicle and its new owner.

Establishes new owner

The bill of sale document explicitly states the new legal owner of the car. Thus, the seller will not be held liable for damages, insurance, or fines incurred after the purchase has been completed with a car bill of sale document.

Reveals the nature of the payment

The bill of sale document also describes the nature of payment offered to the seller to purchase the car. For instance, the document could state whether the payment was total or partial. If the payments made are partial, the sale car bill will reveal the amount to be completed and the agreed due date for payment.

For registration purposes

In some states across America, a buyer may not be allowed to register their car with the DMV without a bill of sale document. Thus, the document isn’t only for the buyer and seller but also for registration and documentation purposes.

Proof for tax and insurance

The car bill of purchase template is also necessary for tax and insurance claims.

Some states may not require you to have an auto bill of sale. However, it is vital to have one in place.

When to Use it?

The car bill of sale is a legal document signed into an agreement between the seller and buyer after completing payments. The car bill of sale certifies that the car has been bought in its current condition.

It doesn’t matter if the car already has some issues. If the car bill of purchase has been signed, it’s no longer a problem for the seller. Thus, if the vehicle has future issues, the seller will not pay for repairs, damages, or fines.

Essential Information to be Included

A car bill of sale should include the following:

Vehicular information: Details such as the brand, model, color, year, and making should be included.

Odometer readings: The odometers reveal the number of mileage that the car has run. The odometer readings should be recorded at the point of sale.

Buyer information: The document should also contain the full name, contact address, phone number, or other vital details.

Seller information: The document should also record the seller’s correct name, phone number, and contact address.

Payment details: The price of the car should be stated as well as the nature of the payment. If the payment was completed in lump sum or in installments, it should also be noted. The form of payment (cash or electronic transfer) should be included.

VIN: The vehicle information number (VIN) is unique to every car. Thus, it should be included.

Sale date: The accurate date of the car purchase should be added as well.

Vehicle condition: The car’s current condition at the point of purchase is essential information that should be included in the document.

Terms and conditions: Technical phrases such as ‘the vehicle is being sold as is’ should be clearly stated in the document to prevent future disputes.

Signature: Both seller and buyer should sign the document, making it legal and valid.

Tip: In some cases, other information such as names and signatures of witnesses, liens or encumbrances against the vehicle, and the location where the car was last registered may be included.

It is essential that when filling the document, you do not use nicknames as it somewhat voids the document. Instead, ensure that the actual legal names of the buyer and seller are used throughout the document. 

Car Bill of Sale Templates

From what we have explored so far, the car bill of sale is essential in selling or purchasing any car. Thankfully, we have provided a free downloadable car bill of sale template for your use. This car bill of sale template features all the sections that need filling by both seller and buyer.

vehicle bill of sale template word

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    How Does a Car Bill of Sale Work?

    Before filling out a car bill of sale template, both buyer and seller must agree. Typically, the following steps should be done:

    Negotiate the terms of sale

    For the car sale to be valid, both parties need to be on the same page on the car price, payment method, and other conditions such as warranty. The car is sold in its present condition (or ‘as-is’). If there is no warranty included in terms of the agreement, this means that the buyer takes full responsibility for the car’s current conditions.

    Fill out the form

    Both buyer and seller need to fill out their names and contact details on the car bill of sale form. In addition, details such as price, warranty information, model, making, brand, year, vehicle condition, payment type, and the mileage must be included. The mileage can also be filled in a separate document, according to some states.

    Finally, the vehicle identification number (VIN) should also be added to the document. It’s an actual 17-character code used to confirm the vehicle’s registration status and if it has been in an accident or stolen by someone else. This code is typically located inside the driver’s side door or windshield.

    Here are a few forms:

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    bill of sale word template 14

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      Gather related documents

      Other documents, such as the certificate of title, is presented to the buyer before the sale is made. If the seller doesn’t have the certificate of title, the buyer can head over to the DMV to process a new one. It typically costs around $20 and takes about 10 – 14 business days for the DMV to process.

      Complete the sale

      After the previous steps have been completed, both parties should sign the car bill of sale and keep copies of each for record purposes. After which, the seller relinquishes possession of the car, including the pink slip, to the buyer for payment. The car bill of sale doesn’t need to be notarized. However, in states like Nebraska, Montana, Maryland, West Virginia, and Louisiana, you’d need to contact a notary to authenticate the document.

      Register the car at the DMV

      The buyer would need to register the vehicle within 10 days at the DMV. In addition, they must submit a copy of the car bill of sale, proof of insurance, a valid ID, and certificate of title, plus additional fees for the car registration process.

      Note: You should also note that while the car bill of sale is a legal document, it doesn’t automatically confirm the new ownership. Thus, it is required that both parties visit the DMV together to handle the paperwork and transfer the title.

      In most cases, the buyer has a time limit of 30 days after purchasing the car to apply for a title transfer at the DMV and register the vehicle there. Failure to do so may incur late fees.

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        State DMV Locations and Bill of Sale

        The table below shows the comprehensive DMV locations across the US and the corresponding car bill of sale template to download. You can look up your current location and find out the nearest DMV address to go register a car and request a certificate of title.

        StateDMV LocationIs a Vehicle Bill of Sale Required?
        AlabamaAlabama Vehicle Licensing OfficesYes
        AlaskaAlaska Division of Motor Vehicles (DMV) OfficesNo
        Arizona  Arizona Motor Vehicles Division (MVD) LocationsNo
        ArkansasArkansas Department of Finance and Administration Office LocationsYes
        CaliforniaCalifornia DMV Field OfficesNo
        ColoradoColorado County Motor Vehicle OfficesYes
        ConnecticutConnecticut Department of Motor Vehicles OfficesYes
        DelawareDelaware DMV Contact and Location InformationNo
        District of ColumbiaDistrict of Columbia DMV   LocationsNo
        FloridaFlorida Highway Safety and Motor Vehicles (SOV) Office LocationsNo
        GeorgiaGeorgia County Tag Office LocationsYes
        HawaiiHawaii Vehicle Licensing and Registration Division LocationsYes
        IdahoIdaho Division of Motor Vehicles (DMV) LocationsNo
        IllinoisIllinois Drivers Service Facility LocationsYes
        IndianaIndiana Bureau of Motor Vehicles Branch MapNo
        IowaIowa Department of Transportation (DOT) LocationsYes
        KansasKansas County Treasurers Association Location DirectoryYes
        KentuckyKentucky Driver Services OfficesNo
        LouisianaLouisiana Office of Motor Vehicles (OMV) LocationsNo
        Maine  Maine Bureau of Motor Vehicles (BMV) LocationsYes
        MarylandMaryland Motor Vehicle Administration (MVA) LocationsYes
        Massachusetts (MA)  Massachusetts Registry of Motor Vehicles (RMV) LocationsYes
        Michigan (MI)Michigan Secretary of State (SOS) Office LocatorYes
        Minnesota (MN)Minnesota Driver and Vehicle Services Office LocationsNo
        Mississippi (MS)Minnesota Driver and Vehicle Services Office LocationsYes
        Missouri (MO)Missouri Department of Revenue Motor Vehicle and Driver License Office LocationsYes
        Montana (MT)Montana Motor Vehicle Division LocationsYes
        Nebraska (NE)Nebraska Department of Motor Vehicles County LocationsYes
        Nevada (NV)Nevada Department of Motor Vehicles Office LocationsYes
        New Hampshire (NH)New Hampshire Department of Motor Vehicles LocationsYes
        New Jersey (NJ)New Jersey Motor Vehicle Commission Facility LocationsNo
        New Mexico (NM)New Mexico Motor Vehicle Division LocationsYes
        New York (NY)New York Department of Motor Vehicles Office LocationsYes
        North Carolina (NC)North Carolina DMV Office LocationsNo
        North Dakota (ND)North Dakota Motor Vehicle Site LocationsNo
        Ohio (OH)Ohio Bureau of Motor Vehicles (BMV) LocationsYes
        Oklahoma (OK)Oklahoma Department of Public Safety (DPS) LocationsYes
        Oregon (OR)Oregon Department of Motor Vehicles (DMV) LocationsNo
        Pennsylvania (PA)Pennsylvania DMV LocationsNo
        Rhode Island (RI)Rhode Island DMV LocationsYes
        South Carolina (SC)South Carolina DMV LocationsNo
        South DakotaSouth Dakota County Treasurers Contact InformationYes
        TennesseeTennessee Drivers Services LocationsNo
        TexasTexas DMV Contact InformationYes
        UtahUtah DMV Office LocationsYes
        VermontVermont Department of Motor Vehicles DMV LocationsYes
        VirginiaVirginia Department of Motor Vehicles DMV LocationsNo
        WashingtonWashington State Department of Licensing (DOL) LocationsYes
        West VirginiaWest Virginia Department of Motor Vehicles Regional Office LocationsYes
        WisconsinWisconsin (DMV) Customer Service CentersNo
        WyomingWyoming (DOT) Drivers Services LocationsYes

        Key Takeaways

        From what we’ve discussed so far:

        • A car bill of sale is an essential document to have, even if the state doesn’t require it.
        • A car bill of sale is a legal document highlighting the agreement between a seller and buyer to purchase a car.
        • 16 states across the US would require a car bill of sale.
        • In some states, a car bill of sale is needed for its registration at the DMV.
        • Some states would require a notary to authenticate the bill of sale.