The motor vehicle bill of sale form may be used as proof to your local Department of Motor Vehicles (DMV) that a sale occurred. The new owner will need this form in order to register. It is also referred to as a receipt of purchase and shall include the vehicle information (including the VIN number), sale price, date of sale, and the names/signatures of both buyer and seller.
By State
- Alabama
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What is a Motor Vehicle Bill of Sale?
A Motor Vehicle Bill of Sale is required in most states in order to complete a transaction involving a motor vehicle. It’s an important document especially in the private market by individuals and used car sales. The document records the transaction and it can be used as proof of purchase, much like a receipt. A Motor Vehicle Bill of Sale should include the following:
- Year, Make, and Model
- Vehicle Identification Number (VIN)
- Date of Transaction (Sale Date)
- Sale Price
- Names/Addresses/Signatures of both Buyer and Seller
How to Use a Motor Vehicle Bill of Sale
Not only is a Motor Vehicle Bill of Sale used to show proof of purchase, but it also acts as a valuable document for both the buyer and the seller. For the buyer, he or she can use a copy of the Vehicle Bill of Sale when going to the DMV when submitting the Title to transfer ownership, as many states require a Bill of Sale when submitting a Title transfer. As for the seller, a Motor Vehicle Bill of Sale indicates that the vehicle is no longer in their possession, which is important if the new owner gets into legal trouble with the vehicle (traffic tickets, accidents). The seller is mainly responsible for drafting the Motor Vehicle Bill of Sale prior to the transaction.
Once the Motor Vehicle Bill of Sale is signed and completed by both the buyer and seller, each must receive a copy for their records. Some states require that a Motor Vehicle Bill of Sale be notarized, make sure to check with your respective state. When buying or selling a vehicle, see instructions on how to use your Motor Vehicle Bill of Sale.
