A DMV (Department of Motor Vehicles) bill of sale is an important form to keep regarding your car. You often need one to register and title your car with the state. Remember that a bill of sale is not sufficient to prove you own a vehicle―you have to obtain the title to prove ownership.
How to Write
Both buyers and sellers should obtain copies of the bill of sale with signatures from both parties. Each bill of sale should contain the following information about the transaction:
- Make, model, year, and vehicle identification number (VIN)
- Final sale price of the vehicle
- Any warranty that the parties agreed upon
- Names of the buyer and the seller
- County and state where the vehicle was sold
Including all of this information is necessary to make the sale legally sufficient. Every single vehicle has a unique VIN, which is used to help track the car for insurance and other purposes. You can find your vehicle’s VIN on the inside of the driver’s door.
Including the odometer reading will make your bill of sale more thorough and give everyone a basic idea of the vehicle’s condition, but it should not take the place of a mechanic’s inspection.
Some states may require the bill of sale to list additional information, such as the buyer and seller’s addresses and phone numbers as well, which is wise even if the state does not require it because you might need to contact the other party later regarding the vehicle’s history or another matter. The bill of sale also comes in handy if your state requires any licensing or registration fees based on the vehicle’s value. If the state agency has to estimate the value because there is no bill of sale available, you could pay more in fees than you would have to with the bill of sale.