A used car bill of sale documents the details of the transaction. It also becomes a legal and binding agreement between the buyer and seller. To protect the parties involved, the vehicle bill of sale should include the following, at a minimum:
These are minimum guidelines. Check with the local Department of Motor Vehicles (DMV) for state-specific information. Some state websites provide free bill of sale forms, or bill of sale templates that can be downloaded and printed. Copies of the bill of sale should be made for the buyer, seller and DMV. It may be necessary to have the original and copies notarized. A used car bill of sale, along with other forms of identification and proof of ownership, must be presented to the DMV for titling, registration, and transfer of ownership.
Terms of Sale
Terms of the sale, or purchase agreement, can be included with a used car bill of sale. This information should include any agreements made between the buyer and seller. A purchase agreement may include payment schedules, inspection contingencies, and lien-holder data. The terms of sale should also include any implied or explicit liability information, rather than relying on spoken promises. Used car dealerships should include warranties and statements of vehicle condition.
When purchasing a used car from a dealership, additional information or forms may be mandated by state or local regulations. This information may include:
Be sure to compare the information on the used car bill of sale, especially the VIN. Insuring all information is accurately transferred to the title, will avoid issues at the DMV when transferring ownership and registering the vehicle.