When buying or selling vehicles in the United States, you should utilize a bill of sale to avoid any legal issues. A motor vehicle bill of sale form can be obtained for free online or in your local Department of Motor Vehicles (DMV). Using this document is a great way to secure your interests while purchasing or selling used cars.
Download your fillable Vehicle Bill of Sale Form in PDF format:
– Adobe PDF
Table of Contents
Check Motor Vehicle Bill of Sale Forms By State
- New Jersey
- New Mexico
- New York
- North Carolina
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
What is a Motor Vehicle Bill of Sale?
A bill of sale is a legal document used to register the transfer of ownership over a certain good from one party to another. The usage of such documents isn’t limited to automobiles; bills of sale cover any type of personal property, from jewelry to boats. In fact, even a receipt you get from the store when purchasing a pack of chewing gum can be considered a bill of sale.
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.
Why Use a Bill of Sale When Purchasing or Selling Motor Vehicles?
Bills of sale provide a simple and convenient way to record transaction information. This allows both buyers and sellers to utilize the bills when filling in their tax statements. Bills of sale can also be used for accounting purposes. Since bills of sale can act as proofs of ownership, they help the sides avoid legal disputes. When applying for a bank loan, a bill of sale can assist you in verifying ownership over your assets.
Bills of sale help protect the rights of both sellers and buyers. Through using the “As Is” term, sellers ensure that they won’t be held accountable for any damage to the item. On the other hand, buyers receive a possibility to register used vehicles with ease.
Important Points of Consideration on a Bill of Sale
When filling in a bill of sale, always check for the fields with personal information of the sides. The more diverse set of personal details your document includes, the better. Mind that the bill won’t be considered legally valid if it doesn’t contain necessary information, such as the names of the seller and the buyer. The document should also include fields for the sides’ addresses and phone numbers. It’s strongly advised (though not required) to include emails of the sides.
After indicating personal information of the buyer and the seller, make sure to specify the details of the property being sold. Motor vehicles bills of sale should include the VIN code, license plate number, and odometer disclosure statement.