If you're ready to sell your car, find out if your state provides a bill of sale form. A bill of sale for a car is a legal document that confirms the sale and transfer of possession of a motor vehicle. A bill of car sale requires the following things: Name of both buyer and seller; Address of both buyer and seller; Whole information of car which is being sold like model, size, colour, design etc. These are relatively simple documents for sales that do not require special agreements or circumstances. The bill of sale also verifies the car's current odometer reading. , find out if your state provides a bill of sale form. They’re fairly self-explanatory, but most bill of sale forms ask for: Seller information like name, address, phone number, driver’s license number, and signature. Other states, such as Ohio, have a “promissory note” section on the formal bill of sale of a motor vehicle. A bill of sale for a car should include: 1. It usually contains the personal information of the buyer and seller, a description of the vehicle, and a statement of the price and terms of sale. Generally, the seller writes up the bill of sale which should spell out all the details of the exchange. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. This description could include a statement that the seller acknowledges the sale of the car as described, and for the amount indicated, and certifies that the information provided in the bill is true to the best of his or her knowledge. A description of the nature of the agreement between the buyer and seller. But if you have a different agreement, put it in the bill of sale. Keep in mind that a bill of sale is not proof of ownership of a vehicle. Not all states require them, but it’s a good idea to create one — it can prevent misunderstandings between you and the buyer. Consider bringing a professional mechanic with you to inspect the car if you are going to buy it in as-is condition. I sold a car to a person and created a bill of sale myself. You may have little to no legal recourse if you sign on the dotted line and discover later that you got the short end of the stick. Other states do not require it altogether. The information can be handwritten by the seller. Special RequirementsSome states require a bill of sale for a motor vehicle be notarized. Most private party sales are assumed to be “as is,” meaning that there's no warranty. In this case, the buyer and seller have to verify their identities and sign the bill before a public notary. We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. The amount paid for the transfer of rights to the vehicle and the date of sale. Below are bill of sale samples. For the buyer, it gives specific information about the vehicle that can be checked against a Vehicle History Report. The seller commonly draws up the agreement for both parties to sign -- preferably in the presence of a notary public. Many or all of the products featured here are from our partners who compensate us. It also details the terms of the sale, including information about price, delivery, and condition. The section must be completed if the buyer is paying for the car in installments. For the seller, a bill of sale shows the date the vehicle was sold and information about the buyer. The selling price of the car. For example, the web address for California's Department of Motor Vehicles is. The full names, addresses and signatures of the buyer and seller. A Bill of Sale is a document that is used to transfer ownership of a good or goods from a seller to a buyer. Pre-qualified offers are not binding. Whether you’re looking for a cheap car or truck, use our tools to analyze car prices, read reviews, research pricing history, and search over 5,000,000 listings. Generally, it reads something like this: “I declare under penalty of perjury that the statements herein contained are true and correct to the best of my knowledge and belief.”. Print out a Bill of Sale. Buyer BewareA bill of sale for a car is a binding contract. If the car incurs a traffic violation or gets involved in an accident, the seller can prove that he or she was no longer in possession of the vehicle and is therefore not liable. A bill of sale also acts as a record of the sale price and date of a vehicle. Meet Your State's Requirements Sample Bill of Sale Form For Car. If the engine fails a few blocks from the seller’s garage, the seller is under no obligation to take back the car or pay for repairs. Refinancing may lower your car payment or help you repay faster. It is used in situations where the former owner transfers possession of the goods to a new owner. Either you or the seller must pay off the lien before you can get a new title from a motor vehicle agency. Our partners compensate us. A bill of sale is like a receipt. Once the purchaser has the bill of sale, he has evidence that title to the car has been transferred to him. Our partners cannot pay us to guarantee favorable reviews of their products or services. It acts as a contract to transfer the vehicle to you as the new and rightful owner, says Nolo, an online legal resource. A brief description of the automobile being sold. Indicate that the car is a gift or a partial gift and state the reduced price, if any money changed hands. If the car is a gift or partial gift, you should still create a bill of sale. You can also search online for the following: “automobile bill of sale [name of state].” Carefully scan the results and select one that comes from your state’s motor vehicle department. The seller can design a unique bill format for his showroom using Bill of Sale Forms. Even if your local DMV does not need a bill of sale to complete a title transfer or vehicle registration, you should get one to avoid future misunderstandings between you and the other person involved in the transaction. Indicate that the car is a gift or a partial gift and state the reduced price, if any money changed hands. All financial products, shopping products and services are presented without warranty. The vehicle’s … However, you can also issue a bill of sale when you sell personal property like clothes, furniture, or even a puppy. It usually contains the personal information of the buyer and seller, a description of the vehicle, and a statement of the price and terms of sale. Autolist is building a better automotive buying experience for everyone, by offering the best apps and the largest selection of new and used cars in the United States. 5 Reasons to Say No to 72- and 84-Month Auto Loans. Auto Loan Refinance Calculator: How Much Can You Save? And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. It could also include a statement that the buyer accepts receipt of the bill of sale and understands that the vehicle is sold in as-is condition. If you are the buyer, review it carefully and look for inconsistencies between the terms of sale and what you agreed with the seller. Pre-qualified offers are not binding. I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Pay particular attention to statutes regarding payment, warranty, delivery, and any special conditions. Many states have readymade Bill of Sale forms. Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc.: Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812, Prevent identity theft, protect your credit, The difference between term and whole life insurance, How medical conditions affect your life insurance rate. Once you complete the document or fill in the blanks, the buyer and seller should each receive a copy. This includes the names, addresses, phone numbers, and driver license numbers of both the buyer and seller. Your state’s motor vehicle department website might have a bill of sale form you can download and fill in. Try this calculator to see if it’s right for you. Writing a bill of sale for gifting a car is not complicated, and the seller can usually use a bill of sale template found online. What does a car bill of sale look like So, to earn a determination in regards to what advice to include, figure more information about the firm, its goods or services, and also the abilities required for the job. Warranty information. Above the signature there's language stating that the information is accurate. He told the clerk that the interior had been all torn up by the previous owners dogs. If your state does not require a bill of sale or does not specify what it should include, you can draft a simple proof of sale contract on a word processor or check online for a generic copy. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Gifting a car to another person almost always requires a bill of sale verifying that the car is being given as a gift. It also means that you acknowledge that the seller does not extend you any warranty coverage. It includes the description of the car (year, make and model), mileage, any warranty information and the price of the car. Compare car loans from multiple lenders to find your best rate and learn what you need to know before you apply. The buyer, a witness and myself signed the bill of sale (2 copies: one for both parties) which indicated that no returns were to be accepted, that the car carried no warranty, and that I as the seller was no longer responsible for the car … These comprise of all the essential segments that are essential to define a car sale. But if you have a different agreement, put it in the bill of sale. The first thing that should appear on a motor vehicle bill of sale is the heading. If either party initiates legal proceedings that involve the negotiation or sale of the car, both parties will need a record of the transaction to prove their case. Most private party sales are assumed to be “as is,” meaning that there's no warranty. Car Affordability Calculator: How Much Can You Spend? While you’re on the department’s site, check your state’s bill of sale requirements. A bill of sale does not prove ownership—only a title transfer does that. To find such a form, visit your state’s DMV or Department of Transportation website. If not, you can write your own with the information provided below. When evaluating offers, please review the financial institution’s Terms and Conditions. To assume full ownership, you need to have title to the car, and it should be free and clear of liens. In this way, it acts as an invoice and a receipt for the people involved in the transaction. When evaluating offers, please review the financial institution’s Terms and Conditions. 5. The description of purchased or sold car should be mentioned with – * the year, model and make of car If not, you can write your own with the information provided below. The bill of sale is a contract between a car buyer and seller. Here is a list of our partners. You may need both documents for registration and licensing purposes. My uncle bought a car from his company for $1000 and blue book on the car was more like $7000. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. It should be centered, in bold, and usually in all capital letters. You can also find a free, editable bill of sale template from the Microsoft Office Templates store. All financial products, shopping products and services are presented without warranty. Most states require that the bill of sale identify the vehicle’s make, model, year, and identification number (VIN). Then search for a Bill of Sale. If your state doesn’t provide a bill of sale, you can write one with key information about the vehicle and sale. 4. The full names, addresses and signatures of the buyer and seller. When my uncle went to register the car the clerk questioned the price listed on the bill of sale. Serial number and identification number; It also requires a vehicle identification number and license number. Typically, the seller drafts the bill. For example, the web address for California's Department of Motor Vehicles is www.dmv.ca.gov and it provides a bill of sale that you can download. He is the author of 10 books. Both the buyer and seller should have copies of the form. The website will probably end in “.gov.”. A bill of sale is a document that transfers ownership of goods from one person to another. A Motor Vehicle Bill of Sale should include the following: Year, Make, and Model Vehicle Identification Number (VIN) Date of Transaction (Sale Date) A bill of sale is a document that verifies your purchase, and therefore your ownership of, a valuable asset such as a car, a TV or other large item.Not only does the bill of sale prove you legally own the item, it may be used to determine how much sales tax you pay. Where Do You Find a Bill of Sale Form?You can get a bill of sale form from the website or local office of your state’s Department of Motor Vehicles. This may influence which products we write about and where and how the product appears on a page. A bill of sale for a car should include: 1. The date of the sale. Our opinions are our own. Bills of sale may be used in a wide variety of transactions: people can sell their goods, exchange them, give them as gifts or mortgage them to get a loan. They should be typed on a computer with spaces left for the car information. 5. Print out the document. 2. Here is the quote from the Bill of Sale form from California: This line is right above where you sign. If the bill of sale stipulates that the car is being sold as-is, your signature on the contract means that you agree to accept the vehicle with any apparent or hidden defects it may have. Typically, a bill of sale for a car includes the following information: Information about the parties to the contract. Documents of public record, such as car titles, must be notarized. A bill of sale comes in handy when selling items, such as a used car, to another party. Buyer information like name, address, phone number, driver’s license number, and signature. Other states are similar. Calculate your monthly car payment and see how term, interest rate and credit score change the result. Disclaimer: NerdWallet strives to keep its information accurate and up to date. When Should a Bill of Sale Be Used? The date of the agreement, the purchase price, and any identifying numbers for the sold item should be clearly indicated on the form as well. NerdWallet strives to keep its information accurate and up to date. It us very easy and simple to write one which we are going to tell you below, an bill of sale for a car should contain the following details : First of all the date of sale should be mentioned on the bill. So how do we make money? The date of the sale. Car Loan Calculator: Estimate Your Auto Loan Payments. The bill of sale gives proof of the exchange of goods for money and requires specific language to make sure all parties are covered. The notary then signs, dates, and applies his or her seal on the bill. In addition to the basic contact info for both the buyer and seller, your used car bill of sale needs to include the purchase amount and plenty of identifying details for the vehicle in question, from the VIN to its appearance. What is the Purpose of a Bill of Sale?A bill of sale for a car serves as evidence of a contract. A notary public must follow certain procedures when notarizing a bill of sale for a car. Above the signature there's language stating that the information is accurate. Most bill of … Both buyer and seller can use it for tax purposes, and either party can use it to show when responsibility for the vehicle changed. The contract agreement A seller can use a bill of sale to show that he or she sold the car without warranty, and a buyer can use it to prove that he or she made full payment to the seller in anticipation of receiving full ownership of the vehicle. It is proof that the original owner of a vehicle transferred possession to another person and received compensation for it. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Philip Reed is an automotive expert who writes a syndicated column for The seller should have it checked by a third party to avoid spelling errors and to make sure the handwriting is legible. While selling a car, the seller is required to present a proper car bill of sale to the buyer. If the vehicle is a gift or a partial gift, the bill of sale should reflect the fact and state the amount of consideration paid, if any. A few states require that the bill of sale is notarized (stamped by a notary public as additional legal proof of its accuracy). Most states require a bill of sale when buying or selling vehicles or animals such as horses, so that there is proof of purchase. Get a CopyBoth the buyer and seller should keep signed copies of the bill of sale for their records. A bill of sale is proof that you bought the car. Some states require a bill of sale for a car to be notarized; a few require that it include an odometer reading. Even if your state does not require a bill of sale to be notarized, having a notary act as a witness to the contract protects you, either as the buyer or seller. By keeping what goes into writing a bill of sale in mind, you can write one yourself without having to hire a professional. If the car you are buying was financed, whoever is servicing the loan holds the title to the car until the loan is cleared. The promissory note contains the names of the buyer and seller, the principal purchase price, and the amount and number of monthly payments the buyer has to make to complete the purchase. Generally, it reads something like this: “I declare under penalty of perjury that the statements herein contained are true and correct to the best of my knowledge and belief.”. 2. The bill comes in handy to the buyer for different reasons like proof to the bank that may have offered him car loan and for certain provisions at work. The text can say “Bill of Sale” or “Deed of Sale,” whichever is appropriate in your locality or region. A bill of sale is a document that verifies you’ve sold your car and provides basic information about the vehicle and the terms of the sale. It goes without saying that both buyer and seller should verify all signed copies are identical. However, this does not influence our evaluations. The bill of sale should show the seller's name and address as well as the date the sale was concluded. Bills of sale can help to prove the identity of a vehicle’s true legal owner. If the car is a gift or partial gift, you should still create a bill of sale. 2. NerdWallet that has been carried by USA Today, Yahoo Finance and others. If you are buying a used car from a friend or other private person, you may need to get a bill of sale before you can register the vehicle with your local motor vehicle agency. Some states, such as Tennessee, require the seller to disclose the exact odometer reading of the vehicle at the time of sale and warrant that the reading reflects the actual mileage of the vehicle. The bill of sale should include the full name, address and phone number of both the buyer and the seller involved in the transaction. Even if your state doesn’t offer a downloadable vehicle bill of sale form, you might be able to find a free template online — or you can easily write one yourself. A bill of sale for a car is a legal document that confirms the sale and transfer of possession of a motor vehicle. You can use a bill of sale to document a variety of purchases, with most people using them for cars, motorcycles, or boats. The bill of sale for a car lists the specific date, the specific location and the amount of money for which the seller sold the car. BILL OF SALE. If you are the buyer, keep your copy with the title of the vehicle. 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