Tips on Buying and Selling a Vehicle with a Bill of Sale
Whether you are purchasing or selling a car, the following guide will introduce you to the main principles of filling in a bill of sale template:
- Negotiate the terms. A motor vehicle bill of sale requires both the seller and the buyer to come up with suitable terms before signing the document. This includes reaching an agreement on the vehicle’s price, payment method, and transaction terms. Mind that cash payments are commonly made when the deal is being signed, while bank transfers must be finished before the transaction takes place.
- Obtain the VIN of your new car. Vehicle Identification Number (a unique 17-digit code) can be found on the interior dash or door jam from the driver’s side or under the hood. Buyers are responsible for identifying the VIN, so make sure to check it when purchasing a car. After obtaining the VIN, you’ll be able to access the history of repairs, accidents, and ownership of the automobile.
- Collect all required documents. In addition to the vehicle bill of sale, you’ll need to obtain the car’s Title and Registration. Mind that the Title might be missing; if this is the case, reach out to the local DMV to request a new Title. It’ll be provided within 14 business days. You’ll also need to gather an odometer disclosure statement and a photo ID of the seller.
- Finish the transaction. After collecting required documents, both sides should meet in a predetermined location to close the deal. While signing the motor vehicle bill of sale form, the buyer must provide the funds, while the seller is obliged to bring the vehicle. Depending on the laws of your state, either one of the sides will be responsible for paying the sales tax.
- Register the newly obtained vehicle. Once the sides finish the ownership transfer process, the car’s new owner should visit the local DMV to register their vehicle. Required documents include the bill of sale, odometer disclosure, proof of car insurance, owner’s ID, title, and tax charged by the state. Mind that some states demand buyers to provide results of emissions tests to register the vehicle.
Whether you are buying or selling a vehicle, you should use a bill of sale to record the transaction. A fillable template of the document can be obtained from our website. Every PDF in our database is downloadable and printable; one doesn’t even need to register to access the templates.