What Is a Bill of Sale for Used Cars?

A bill of sale is a legal document made by a seller to a buyer. It is most commonly associated with used car transactions.

Contents

Usually a bill of sale contains the following: the date of purchase, location of purchase, value of purchase and names of seller and buyer.

Purpose

In order to register the vehicle you bought at your local DMV (Department of Vehicles) office, you need a bill of sale. Also, you need a document to verify you are the legal owner, and to determine the sales tax, which is based on your jurisdiction.

Obtainment

Every state has a bill of sale. It can be obtained by going to your local DMV office or downloading one online.

Other Uses

A bill of sale is not just restricted to used car transactions. It can also be used for other kinds of used vehicles, such as a motorcycle or boat.

Significance

The bill of sale acts as written evidence of the transfer of property from one person to the other--in this case, from the seller to the buyer.