In the process of selling a car, one of the most crucial documents you need to understand is the Bill of Sale.
Here is how to write a bill of sale for a car:
Write a bill of sale for a car by including a clear title, seller and buyer details, vehicle information, purchase price, payment terms, and signatures. Check your state’s requirements and use templates to ensure a legally binding and comprehensive document.
This article will provide a comprehensive guide on how to write a bill of sale for a car with plenty of examples and free templates.
What Is a Bill of Sale for a Car?
A Bill of Sale is more than just a receipt for a transaction.
It is a legally binding document that records the sale of a tangible asset like a car.
It substantiates the shift of ownership from the seller to the buyer, providing a record of the transaction.
The Bill of Sale is important for several reasons:
- Proof of Ownership: It serves as the buyer’s proof of ownership, which they will need for various purposes such as obtaining insurance or registering the car.
- Release of Liability: For the seller, it’s a release of liability, showing that they no longer own the car and are not responsible for issues such as parking tickets, accidents, or damage after the sale.
- Documentation for Tax Purposes: The document can be used for tax purposes, as it contains information on the sale price.
With the definition out of the way, let’s go through an easy way to write a bill of sale for a car (with lots of examples).
How to Write a Bill of Sale for a Car
Here’s a step-by-step guide on how to write a bill of sale for a car:
1) Start with the Title and Date
The first step in creating a bill of sale is to clearly indicate the title at the top of the document.
This is usually something straightforward, such as “Bill of Sale.” Following the title, you should also include the date of the transaction.
This helps establish the timeline of the sale, indicating when the ownership of the vehicle was transferred from the seller to the buyer.
The date can be crucial in case of disputes or for tax purposes.
For example:
BILL OF SALE
Date: May 3, 2023
2) Add Details about the Seller and Buyer
The next section should provide detailed information about both the seller and the buyer.
This includes the full legal names of both parties, their complete addresses, and contact information such as phone numbers and email addresses.
Including such detailed information helps in clearly identifying the parties involved in the transaction.
For example:
Seller Information:
Name: John Doe
Address: 123 Elm St, Anytown, State, ZIP
Phone: (123) 456-7890
Email: john.doe@example.comBuyer Information:
Name: Jane Smith
Address: 456 Oak Ave, Anytown, State, ZIP
Phone: (098) 765-4321
Email: jane.smith@example.com
3) Don’t Forget the Vehicle Information
The bill of sale should include a comprehensive description of the vehicle being sold.
This typically includes details such as the make of the car, the specific model, the year of manufacture, vehicle color, Vehicle Identification Number (VIN), and the current mileage.
By providing a detailed description, you help to identify the specific vehicle involved in the transaction.
For example:
Vehicle Information:
Make: Toyota
Model: Camry
Year: 2018
Color: Blue
VIN: 1HGCM82633A123456
Mileage: 45,000
4) State the Purchase Price
The document should clearly state the agreed-upon selling price of the vehicle.
This is important for both parties for record-keeping and tax purposes
It’s also useful to include the form of payment used in the transaction, whether it was cash, check, or another form of payment.
For example:
Purchase Price: $10,000
Form of Payment: Cash
5) Include the Payment Terms
If the vehicle was not paid for in full at the time of the sale, the bill of sale should outline the agreed-upon terms of payment.
This includes information about any down payment made, the amount and frequency of installment payments, and the date by which the full payment should be made.
For example:
Down Payment: $2,000
Remaining Balance: $8,000
Installment Payment: $1,000 monthly
Full Payment Due By: December 3, 2023
6) Put In an As-Is Clause
It’s typically advisable to include an “as-is” clause in a car bill of sale.
This clause states that the buyer is accepting the car in its current condition, and any issues that arise after the sale are not the responsibility of the seller.
Such a clause helps protect the seller from potential liability for future problems with the car.
For example:
As-Is Clause: The vehicle is sold “as is,” without any warranties, express or implied, as to its condition. The buyer accepts full responsibility for all repairs and maintenance.
7) End With Signatures
The final part of the bill of sale should be the signatures of both the buyer and the seller, along with the date of signing.
This indicates that both parties have read, understood, and agreed to the terms of the sale.
It’s also advisable to print the names of both parties under their signatures for clarity.
For example:
Seller Signature: ____________ Date: _
Printed Name: John DoeBuyer Signature: ____________ Date: _
Printed Name: Jane Smith
This format ensures the document is clear and legally binding.
Remember to keep a copy of the signed bill of sale for your records. It can serve as proof of the transaction and might be required for tax reporting purposes.
Also, consider having a witness or a notary public present during the signing, especially if it’s required by your state law.
Here is a good video about how to write a bill of sale:
What To Include in a Bill of Sale for a Car (Summary Checklist)
While writing a bill of sale for a car, it’s important to ensure that it includes the following essential details:
- Full Legal Names of Both Parties: This is to ensure that the document is legally binding on both the seller and the buyer.
- Contact Information for Both Parties: This includes both their addresses and phone numbers. This can be useful if either party needs to be contacted in the future regarding the transaction.
- Full Description of the Vehicle: Make sure to include a complete and accurate description of the car. This will include details such as the car’s make, model, VIN, color, and current mileage.
- Date of Sale: The date of the transaction should be clearly stated. This is crucial as it shows when the ownership of the car was transferred.
- Purchase Price: The price at which the car was sold should be clearly stated. This is important for both the buyer and the seller for tax purposes.
- Payment Terms: The terms of payment should be clearly outlined. This includes details on whether the vehicle was paid for in full at the time of sale, or if there was an agreement for payment in installments.
- As-Is Clause: It’s recommended to include an “as-is” clause. This indicates that the buyer is accepting the car in its current condition, and the seller won’t be held liable for any future issues with the vehicle.
- Signatures of Both Parties: Lastly, the document should be signed and dated by both the seller and the buyer. This demonstrates that both parties agree to the terms and conditions of the sale.
What Not To Include in a Bill of Sale for a Car
There are also certain things that should not be included to protect the privacy and security of the involved parties:
- Personal Identification Numbers: Sharing sensitive personal information in a bill of sale may pose a risk of identity theft in case the document gets lost or stolen. Don’t share your Driver’s Liscene number or SSN. It’s crucial to take extra precautions when handling such information to prevent potential harm.
- Bank Account Details: To protect financial security, the seller’s or buyer’s bank account details should not be included in the bill of sale. If the purchase is being financed, that information should be included in a separate loan agreement.
How to Write a Bill of Sale for Used Car?
Writing a bill of sale for a used car follows the same guidelines as for a new car.
Here are some additional pointers:
- Detailed Vehicle Description: Ensure that the description of the vehicle is accurate. This includes any noticeable flaws or damages.
- As-Is Clause: It’s crucial to include an “as-is” clause when selling a used car. This clause means that the buyer accepts the vehicle with all its known and unknown problems.
- Odometer Disclosure Statement: Federal law requires the seller of a used car to provide an accurate odometer reading at the time of sale. This could be included in the bill of sale or in a separate document.
Writing a Bill of Sale: Chart of State Requirements
Different states have varying requirements for a bill of sale.
Here’s a chart with the important details:
| US State | Requires Bill of Sale | Requires Notarization |
| Alabama | Yes | No |
| Alaska | No | No |
| Arizona | No | No |
| Arkansas | Yes | No |
| California | No | No |
| Colorado | Yes | No |
| Connecticut | Yes | No |
| Delaware | No | No |
| Florida | No | No |
| Georgia | No | No |
| Hawaii | Yes | No |
| Idaho | Yes | No |
| Illinois | No | No |
| Indiana | No | No |
| Iowa | No | No |
| Kansas | No | No |
| Kentucky | No | No |
| Louisiana | No | Yes |
| Maine | Yes | No |
| Maryland | No | Yes |
| Massachusetts | No | No |
| Michigan | No | No |
| Minnesota | No | No |
| Mississippi | No | No |
| Missouri | No | No |
| Montana | No | Yes |
| Nebraska | Yes | Yes |
| Nevada | No | No |
| New Hampshire | No | Yes |
| New Jersey | No | No |
| New Mexico | No | No |
| New York | Yes | No |
| North Carolina | No | No |
| North Dakota | No | No |
| Ohio | Yes | No |
| Oklahoma | No | No |
| Oregon | No | No |
| Pennsylvania | No | No |
| Rhode Island | Yes | No |
| South Carolina | No | No |
| South Dakota | Yes | No |
| Tennessee | No | No |
| Texas | No | No |
| Utah | No | No |
| Vermont | Yes | No |
| Virginia | No | No |
| Washington | Yes | No |
| West Virginia | Yes | Yes |
| Wisconsin | No | No |
| Wyoming | Yes | No |
Note: This chart is a simplified summary. It’s always recommended to check your local laws or DMV website for the most accurate information.
Bill of Sale Examples
A bill of sale that is well-organized and structured can be highly beneficial in facilitating a smooth and legally binding car transaction.
Here are two examples of how to write a bill of sale for a car.
Example 1:
BILL OF SALE
Date: January 1, 2023
Seller Information:
Name: John Doe
Address: 123 Elm St, Anytown, State, ZIP
Phone: (123) 456-7890
Email: john.doe@example.com
Buyer Information:
Name: Jane Smith
Address: 456 Oak Ave, Anytown, State, ZIP
Phone: (098) 765-4321
Email: jane.smith@example.com
Vehicle Information:
Make: Toyota
Model: Camry
Year: 2018
Color: Blue
VIN: 1HGCM82633A123456
Mileage: 45,000
Purchase Price: $10,000
Form of Payment: Cash
As-Is Clause: The vehicle is sold “as is,” without any warranties, express or implied, as to its condition. The buyer accepts full responsibility for all repairs and maintenance.
Seller Signature: ________________________ Date: ___________
Printed Name: John Doe
Buyer Signature: ________________________ Date: ___________
Printed Name: Jane Smith
Example 2:
BILL OF SALE
Date: February 2, 2023
Seller Information:
Name: Michael Johnson
Address: 789 Pine Rd, Anytown, State, ZIP
Phone: (321) 654-9870
Email: michael.johnson@example.com
Buyer Information:
Name: Sarah Williams
Address: 012 Maple Ln, Anytown, State, ZIP
Phone: (789) 012-3456
Email: sarah.williams@example.com
Vehicle Information:
Make: Honda
Model: Accord
Year: 2020
Color: White
VIN: 5J8TB4H5XFL012345
Mileage: 30,000
Purchase Price: $15,000
Down Payment: $5,000
Remaining Balance: $10,000
Installment Payment: $1,000 monthly
Full Payment Due By: September 2, 2023
As-Is Clause: The vehicle is sold “as is,” without any warranties, express or implied, as to its condition. The buyer accepts full responsibility for all repairs and maintenance.
Seller Signature: ________________________ Date: ___________
Printed Name: Michael Johnson
Buyer Signature: ________________________ Date: ___________
Printed Name: Sarah Williams
Bill of Sale Templates
Here are two templates that you can use as a starting point when you’re preparing a bill of sale:
Template 1:
BILL OF SALE
Date: _______________
Seller Information:
Name: _______________
Address: _______________
Phone: _______________
Email: _______________
Buyer Information:
Name: _______________
Address: _______________
Phone: _______________
Email: _______________
Vehicle Information:
Make: _______________
Model: _______________
Year: _______________
Color: _______________
VIN: _______________
Mileage: _______________
Purchase Price: _______________
Form of Payment: _______________
As-Is Clause: The vehicle is sold “as is,” without any warranties, express or implied, as to its condition. The buyer accepts full responsibility for all repairs and maintenance.
Seller Signature: ________________________ Date: ___________
Printed Name: _______________
Buyer Signature: ________________________ Date: ___________
Printed Name: _______________
Template 2:
BILL OF SALE
Date: _______________
Seller Information:
Name: _______________
Address: _______________
Phone: _______________
Email: _______________
Buyer Information:
Name: _______________
Address: _______________
Phone: _______________
Email: _______________
Vehicle Information:
Make: _______________
Model: _______________
Year: _______________
Color: _______________
VIN: _______________
Mileage: _______________
Purchase Price: _______________
Down Payment: _______________
Remaining Balance: _______________
Installment Payment: _______________ monthly
Full Payment Due By: _______________
As-Is Clause: The vehicle is sold “as is,” without any warranties, express or implied, as to its condition. The buyer accepts full responsibility for all repairs and maintenance.
Seller Signature: ________________________ Date: ___________
Printed Name: _______________
Buyer Signature: ________________________ Date: ___________
Printed Name: _______________
These templates can be printed and filled out manually, or you can use them as a guide to create a digital version of your bill of sale.
Remember, while these templates include many of the most common elements found in a bill of sale for a car, you should always check your local regulations to ensure you include any additional information required by your state.
Can You Write a Handwritten Bill of Sale for a Car?
Certainly! It is possible to create a bill of sale for a car using a handwritten document.
As long as it includes all the necessary information and is signed by both parties, a handwritten bill of sale is considered legally valid.
However, it’s generally more professional and easier to read if the bill of sale is typed.
Many states offer bill of sale templates that you can fill out, which ensures you include all necessary information.
Final Thoughts: How To Write a Bill of Sale for a Car
If you’re purchasing or selling a car, it’s crucial to understand the process of creating a bill of sale.
This document acts as a record of the transaction and can protect both parties in case of disputes. As always, make sure to check your specific state requirements to ensure your bill of sale is legally compliant.
Thanks for reading!
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