Do I need a bill of sale to sell my car?

A bill of sale is a document that records the terms of the agreement between the buyer and the seller. It should include:

• Names and addresses of buyer and seller

• Vehicle VIN and description (year, make, model, etc.)

• Odometer reading

• Date that the buyer takes possession

• Price agreed upon

• Disclosures about the condition of the vehicle

• Additional terms of the sale

• Dated signatures of both parties

Important: A bill of sale is NOT the same as a transfer of title. The title transfer must be finalized by the buyer at the DMV, usually at the same time as they register it. In some states you need a bill of sale to complete this process.

In some states it is required by law to have a bill of sale for all vehicle sales (as well as boats, trailers, and motorcycles).

In other states, it may not be required, but there are some very good reasons to have one anyway:

1. Release of Liability. After the buyer takes off with the vehicle, as well as the signed title, there is no public record of the transfer until they file it with the DMV. So, anything that happens with the car can come back to you. In such cases, it is good to have a bill of sale to prove you have given up possession of the vehicle.

2. Tax Purposes. As the seller of the vehicle, you can be liable for taxes if you sold it for a profit. As a buyer, you are required to pay sales tax on your purchase at the DMV when you register the car. In either scenario, it's helpful to have a bill of sale as documentation.

Related: Do I need to pay tax to sell a car?

3. Disclosures Can Protect the Seller. By putting in writing any known issues (such as damages or defects), the seller can head off recourse from the buyer claiming a breach of consumer protection laws.

Altogether, even if not legally required, it is highly recommended to have a bill of sale and keep it in a safe place.

Here are some suggestions:

• Look up the rules specific to your state
  Some states require the bill of sale to be notarized or have a specific format that they require you to follow. If you need a notary, arrange to meet at a notary's office.

• Download a PDF template
  Most state DMV websites have their own template you can fill in and print out before you meet with the buyer.

• Do it yourself
  If your state accepts a generic Bill of Sale, there is no reason you cannot simply type one up yourself in Google Docs or even use a pen and paper. The key is to get all the proper information correct and to have both parties sign and date. This can be a legally-binding document.

• Online bill of sale
  If you create your bill of sale electronically you can share it with the buyer over email and have them sign and return. This has the added benefit of leaving a copy of the document in your email inbox or on your hard drive. You can create such a document in Adobe Acrobat, but this requires a bit of technical ability on both buyer and seller. There are also many paid document services that will simplify signature exchange.

• Double-check your work
  This is an important document, so closely review all the details.

• Don't lose it
  Keep your bill of sale in a safe place and make a digital copy for your files.

With KeySavvy, you don't need to think about any of this; we create the bill of sale for you, and you will always have access to a digital copy from your KeySavvy Dashboard.

• Cars are not donuts.

• A bill of sale for a vehicle is a document that legally records the details of the transaction between buyer and seller.

• Many states require a bill of sale for all vehicle sales. Check the rules with your DMV.

• Even if it is not required, a bill of sale gives the seller extra protection through release of liability and provides an important record for potential taxes.

• A bill of sale can be produced and signed without much difficulty.

• KeySavvy's service includes creating a bill of sale that will always be available for download through the KeySavvy dashboard.