A bill of sale in Illinois isn’t required when registering a vehicle that has been bought through a private sale or dealership sale within the state. However, if you have just moved to the state of Illinois and need to register a vehicle that has an out-of-state title, you will be required to have some proof of ownership, such as the title of the vehicle or this form. As such, the state of Illinois does not provide its own bill of sale document.
You are probably asking yourself, why have one at all if it isn’t required? Having it in Illinois has some benefits, mainly being proof that the transaction has occurred and giving both the seller and the buyer legal protection should a dispute arise regarding the sale of the vehicle.
For buyers, this form can be used as proof that you were not responsible for parking tickets, fines, or accidents that occurred before the date of the sale. It works the same way for the seller, acting as proof that they are not responsible for anything that happened after the date of sale.
For those who wish to use their vehicle for tax or business purposes, you will be required to have this bill of sale in Illinois.
Once the sale has been made, it is up to the buyer to register and title the vehicle with the Illinois secretary of State’s vehicle services division.
Other Requirements
The seller is required to provide an odometer disclosure statement for title transfers (Form VSD 333.4) when selling and transferring ownership of the vehicle. This is done to prove that the mileage on the odometer has not been tampered with or altered in any way.
The seller will also need to complete a Report of Sale (Form VSD-703), which must then be submitted to the secretary of State’s vehicle services divison. This should be done immediately after the vehicle has been sold.
This bill of sale should be written in clear English, without the use of legal jargon. A copy should be given to both the buyer and the seller for their records.
Junk vehicles
If the owner plans to send the vehicle to salvage or has lost the title, they will need to submit a junk vehicle notification form (Form VSD-325) to the state of Illinois. You will also need the correctly assigned certificate of title, salvage certificate, or certificate of purchase, all of which acts as an acceptable bill of sale in Illinois.
Required Details for a Bill of Sale Illinois
When creating a bill of sale in Illinois, you must include the following details:
- The full legal names of both the seller and the buyer
- The full addresses of both the seller and the buyer
- Vehicles details, including the make, model, year, condition, color, odometer reading, and VIN
- The date that the sale took place
- How much the vehicle was sold for
- Both parties must sign it
After Buying a Vehicle in Illinois
Once you have bought the vehicle, you will have 7 days in which to register it at the Secretary of State VSD. You will need to complete an Application for Vehicle Transaction (Form VSD-190), which can be done online or face to face at your local driver services office. For the majority of situations, you will be able to start and complete the process using Illinois’ electronic registration and title (ERT) system.
Illinois law states that after the sale and before you register the vehicle, you are not permitted to operate the vehicle using the plates that are on it because these still belong to the seller of the vehicle.
Registering a Vehicle in Illinois
In Illinois, you have 20 days from the date of the transaction to register a vehicle. Once your vehicle has been registered, you will need to renew the license plates annually. You can renew a registered vehicle online through the vehicle services page.
If you are registering a vehicle for the first time, you will need to do so in person at your nearest Secretary of State office. Documents can also be sent by post to an SOS facility.
Documents Required When Registering a Vehicle in Illinois
When registering a vehicle in Illinois, the following documents are required:
- Bill of sale (if applicable)
- Odometer disclosure statement for title transfers (VSD 333.4)
- Application for vehicle transaction (Form VSD 190). If you are filing online, this must be sent to a local SOS facility within 7 days
- A seller’s report of sale (VSD-703)
- Certification of title, which needs to be signed by the previous owner
- Tax RUT-50, which can be obtained at an SOS office
- A valid Illinois driver’s license
- The correct amount to cover registration fees (this is typically between $150 to $165)
- Proof of Car Insurance that covers the state minimums:
- Coverage for bodily injury liability – $25,000 per individual and $50,000 per incident/accident
- Coverage for property damage liability – $20,000 per incident/accident
- Coverage for uninsured motorist bodily injury – $25,000 per individual and $50,000 per incident/accident
- If you are registering a vehicle on behalf of another person, you will need to complete a motor vehicle power of attorney.
What a Tax RUT-50 Form is
In Illinois, you will need a tax RUT-50 form if you have purchased a vehicle from a private seller. It is also referred to as a Private Party Vehicle Use Tax. In other words, it taxes you when purchasing or acquiring a vehicle from a private seller rather than a dealership. This includes vehicles that are given as a gift, and it applies to vehicles that were registered in another state.
The amount of tax that you pay will depend on how much the vehicle cost and, in some cases, the age of the vehicle. For example, as of 2021, a vehicle that has a price of between $15,000 and $19,000 would have a tax amount of $750. Vehicles that fall under $15,000 are taxed by the age of the vehicle, which can range between $25 to $390.
Your Tax RUT-50 form should be sent to:
Office of Illinois Secretary of State Vehicle Services Department
Howlett Building
Springfield, IL 62756
Conclusion
A bill of sale in Illinois is a very essential document due to the reasons stated in this article. It is necessary to ensure that this document is filed in a proper manner, following all the necessary requirements so that it may prove to be beneficial to it’s user.
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