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  • Stubbuilder
  • Apr 11, 2024

How To Make a Bill of Sale for a Car?

When you are selling your car which is of a high value, you should have a car bill of sale to present it to who you have sold the car to. The car bill of sale trade is a receipt for you and your buyer.

However, not every state requires a car bill of sale, it is always a good idea to provide one since it not only shows that you have received the money- or trade- but it can also outline the terms of the sale.

To avoid the taxes on your vehicle imposed by your state or country, it is generally necessary to get a car bill of sale trade, which verifies the sale of your vehicle. Moreover, this document serves as proof to the Department of Motor Vehicles that the buyer has fulfilled the payment for the car and is now eligible to get the title and registration.

Finally, the bill of sale of a car shows the Department of Motor Vehicles how much you have paid for the car, so they know how much it should be charged for your taxes.

In this blog, we will be talking about how to make a bill for the sale of a car and more about it. Let’s get started.

Bill of Sale Finishing Tips

Only minimum things are required in a car bill of sale of the car, but if you have a document that protects you and the buyer, you should include more than the minimum.

  • Ensure you get the buyer’s complete name and his physical address. In case you have an issue with the title or if the buyer breaks the contract you will need to know how to contact him or her. Check the buyer’s driver’s license to ensure the name and spelling are correct.
  • Ensure that the vehicle bill of sale is clear as to whether the seller has paid for the vehicle in full or if the seller will make the payments on the vehicle.
  • Includes the price of the vehicle on the vehicle bill of sale.
  • Mark the method of payment, whether it is cash, cheque, or credit card. If you are accepting a trade, make sure to insert a whole description of the item you are accepting in the trade.
  • Make sure that the date of the sale is correct.
  • Includes the correct description of the car, including its year, model, VIN, current mileage, and the current license plate number.
  • You should also add the city, country, and state of the transactions that have occurred.
  • Signature of the buyer and seller.

Information About Warranty

The inclusion of warranty information is crucial above all else. Neglecting to do so may lead the buyer to assert that you made statements or suggestions about the vehicle having a warranty, and subsequently demand that you fulfill the warranty terms.

When selling a vehicle without any warranty, it is crucial to include a clear statement in the vehicle bill of sale stating that it is being sold “as it is.” Moreover, it is essential to make sure that the buyer completely understands and accepts this condition. Once the buyer takes ownership of the vehicle, it is significant to stress that any breakdown or mechanical problems that may arise, even if they occur immediately after the sale, are no longer your responsibility.

While many sellers will demand a test drive of the vehicle, they cannot blame you if they choose not to. Honesty is key when it comes to the state of the vehicle, and any significant problems, like a defective water pump, should be disclosed to the buyer. While the vehicle may still run without overheating initially, the buyer might only encounter the issue after driving a specific distance. Refusing to reimburse the buyer for a vehicle with a faulty water pump could harm your reputation and future sales prospects.

Mistakes To Avoid

If you have a notary which is not mandatory, if the transaction is between you and someone from a different state, it is a piece of good advice to have a notary in hand- or at least a third party as a witness.

Many people try to scam others by selling them cars that are out of state. The scammers also say they are in the military. This does not mean that you should trust someone who says that he or she is in the military, but instead, you should ask for military ID proof in addition to the driver’s license.

Never hand a bill of sale to the buyer until you have the whole payment in your hands and you have verified the payment which should be valid. Once you hand over the car bill of sale to the buyer then it becomes difficult to prove that you didn’t get paid.

Make certain that both you and the purchaser have a signed document of the bill of sale for the vehicle. If your state necessitates the registration of the car’s bill of sale with the county clerk, it is recommended to file it promptly, preferably on the day of sale.

Finally, you should contact the Department of Motor Vehicles and then notify them that you have sold the car. Give the representative buyer’s information. In that way, if the buyer is in an accident you have an extra layer of security to prove that you no longer own the car.

Who Signs Bill of Sale Trade?

In most cases, a column may have a married couple’s name or it might have only one spouse’s name on it. The car bill of sale should contain the same names that are in the column. If the title has both the names, then both should sign the car bill of sale. But, if the title has only one spouse’s name, that spouse is responsible for signing the vehicle bill of sale.


In summary, preparing a bill of sale for a vehicle is an uncomplicated yet vital task that entails recording crucial information regarding the sale. By including specifics such as the parties engaged, description of the vehicle, purchase amount, and terms of the transaction, you can guarantee transparent documentation of the change in ownership. Adhering to legal regulations and utilizing a template or professional support can further boost the accuracy and validity of your bill of sale, ensuring protection and peace of mind for both the buyer and seller. In order to create paystub generator free then you should look for Stubbuilder.