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Vehicle bill of sale


Collectively referred to as the “Parties”.

This Bill of Sale, hereinafter referred to as “Agreement”, is entered into and made effective
upon signature by both Parties. 

1. Consideration:

FOR AND IN CONSIDERATION of the sum of $[ INSERT AMOUNT] United States Dollars (USD) (including all sales taxes) the receipt of which from [INSERT BUYER’S  NAME] is hereby acknowledged, the Seller hereby sells, transfers and delivers unto the Buyer as of the [INSERT DATE] , the Motor Vehicle.

2. Payment Method:

Payment is to be made by [Certified Check / Cash].

3. Description of Motor Vehicle: 

  1. Make: [Insert the make of the vehicle which is being sold].
  2. Model: [Insert the model of the vehicle that is being sold].
  3. Vehicle Type: [Insert the kind of vehicle that is being sold]
  4. Vehicle Identification Number (VIN): [Insert VIN]
  5. Year: [Insert the year that the vehicle being sold was manufactured.]
  6. Body Style: [Insert body style e.g. Two-door Sedan]
  7. Features: [Insert features e.g. Vehicle is equipped with XM radio and tracking device etc].
  8. Odometer reading: [Insert Odometer reading]

4. Warranties and Covenants: The Seller warrants that:

  1. The Seller is the legal owner of the Motor Vehicle and has the legal right to dispose, bail, alienate and sell the Motor Vehicle at will;
  2. The Motor Vehicle is free of all liens and encumbrances;
  3. The Seller covenants to defend the title of the Motor Vehicle against any and all claims raised by other parties concerning ownership rights to the Motor Vehicle
  4. Any and all demands raised by other parties with the right to possession of the Motor Vehicle.

5. “AS IS Condition” :

The Buyer acknowledges that the Motor Vehicle is sold “as is”. The Seller expressly disclaims any implied warranty as to fitness for a particular purpose and any implied warranty as to merchantability. The Seller expressly disclaims any expressed or implied warranties.

6. Working Order:

Any warranty as to the condition or working order of the vehicle is expressly disclaimed by the Seller.

7. Manufacturer’s Warranty:

Any disclaimer of Warranties by the Seller in the Bill of Sale will not in any way affect the terms of any applicable warranties from the Manufacturer of the Motor Vehicle. 

8. Liabilities:

The Seller does not assume, nor does the seller authorize any other person on the behalf of the Seller to assume, any liability in connection with the sale or delivery of the Motor Vehicle. 

9. Inspection:

The Buyer accepts the Motor Vehicle in its existing condition given that the Buyer has either inspected the Motor Vehicle or was given the opportunity to inspect the Motor Vehicle but chose not to inspect it.

10. Governing Law:

This Bill of Sale will be construed in accordance with and governed by the laws of State of [Insert name of State].

Template does not constitute any form of legal advice, and the User is at all times encouraged to request external specific legal advice in respect of the execution of legal documents.
Vehicle bill of sale

Buying or selling a car? Make sure you get it in writing. Ensure smooth ownership transfer of your automobile with a vehicle bill of sale.

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What is a vehicle bill of sale?

You’ve found the perfect buyer for your car, but sealing the deal isn't just about a handshake. In today's world, transferring ownership means crossing your T's and dotting your I's with the correct motor vehicle department and other agencies. That's where a well-crafted vehicle bill of sale comes in. 

A vehicle bill of sale serves as the proof of purchase, verifying the purchase of an automobile. It’s typically exchanged when ownership is transferred, such as when keys are handed over for payment. 

Its primary purpose is to formally document the transaction, ensuring alignment between buyer and seller on agreed terms. By delineating the terms in writing, it prevents disputes and misunderstandings. 

Moreover, it prompts discussions on important topics like warranties and conditions beforehand, reducing the likelihood of conflicts. In disputes, the bill of sale acts as valuable evidence in court. Additionally, it serves as tangible proof of ownership transfer, minimizing the risk of fraud or unjust claims to the item.

  • Verification of purchase: Provides tangible evidence of the transaction, affirming the buyer's vehicle acquisition.
  • Dispute prevention: Clearly outlines agreed-upon terms, reducing the likelihood of disagreements or misunderstandings between buyer and seller.
  • Facilitates discussions: Prompts dialogue on critical topics like warranties and conditions before finalizing the sale, fostering transparency and mutual understanding.
  • Legal evidence: Serves as valuable documentation in disputes, offering concrete proof of the transaction's terms and conditions.
  • Ownership confirmation: Acts as official confirmation that the buyer has become the vehicle's rightful owner, minimizing the risk of fraudulent claims or unfair seizure.

A vehicle bill of sale typically contains three fundamental parts:

  1. The buyer and seller's full names and contact information (address, postal code, phone numbers if desired), and a statement that the seller is transferring title to the buyer.
  2. A complete description of the purchased item, including its make, model, color, serial or registration numbers, and any other identifying numbers or marks.
  3. The purchase price for the item. This may also denote what currency will be used and how payment will occur (e.g., cash or credit card)

Buyer and seller responsibilities when it comes to vehicle sales

  • Ensure accurate contact information — Obtain the correct name and physical address of both parties involved in the deal. 
  • Exchange bill of sale only after payment — As the seller, hand over the completed bill of sale only after you've received payment and the transaction is finalized. This protects you from any outstanding payment issues, as the bill of sale is evidence of payment.
  • Consider a promissory note for deferred payments — If the buyer plans to make a down payment and pay the rest over time, consider executing a promissory note alongside the bill of sale to formalize the payment terms.
  • Sign and keep copies — Both parties should sign two copies of the bill of sale — one for each of you to keep for your records.
  • Optional: Bring a witness or notary — While not mandatory, having a third party present or getting your signatures notarized can provide additional assurance and documentation of the transaction.
  • Record the sale — Visit your local tax office to record the bill of sale. This helps estimate sales tax and officially documents the transaction.
  • Check for additional requirements — Depending on your location, additional documents may be required for the vehicle transfer. Check with your local motor vehicle agency and tax authority for specific requirements.

What to include in a vehicle bill of sale

To fill out the bill of sale form, you’ll need the buyer and seller's names and contact details and the vehicle’s make, model, body type, year of purchase, and registration number.

  • Location of sale: Specify the state and county where the sale will occur, ensuring clarity for both parties involved.
  • Purchase price: Include the total amount paid for the vehicle, covering any previous down payments to secure the purchase.
  • Names and addresses of parties: Provide detailed information about the seller and buyer, including names and addresses. Only the individual listed on the vehicle title can legally sell the vehicle.
  • Vehicle location and description: Offer a comprehensive description of the vehicle, including its make, model, year, body type, and Vehicle Identification Number (VIN). This ensures unambiguous identification of the sold vehicle.
  • Seller’s representations and warranties: Confirm that the seller holds ownership of the vehicle and that no other party has a claim to it.
  • Buyer’s representations and warranties: Assure that the individual signing the document on behalf of the buyer has the authority to do so.
  • No other warranties: State that the vehicle is sold "as is," relieving the seller of responsibility for future issues.
  • Inspection: Disclose any known defects or recent mechanical inspections conducted on the vehicle, ensuring transparency in the transaction.
  • Delivery of vehicle: Specify where and when the buyer will take possession of the car, establishing clear delivery terms.
  • Conveyance of title: The promise to transfer the vehicle title to the buyer upon receipt indicates the seller's commitment to completing the necessary paperwork for the title transfer.
  • Cancellation of insurance and tags: Agree to cancel any remaining insurance or tags associated with the vehicle, finalizing the transfer of ownership.
  • Additional terms of sale: Include any extra conditions or agreements agreed upon by both parties, such as cleaning requirements before delivery.
  • Signatures: Require signatures, printed names, and dates from the seller and buyer. Consider including phone numbers for clarity and have a witness sign if necessary.
  • Odometer disclosure statement: Comply with laws by accurately documenting the vehicle's mileage and providing essential details like the seller's name and the odometer reading.

Get driving faster with Contractbook. 

Incorporating Contractbook into your vehicle bill of sale process speeds up the entire transaction, from drafting to signing and storing the document. 

With Contractbook's user-friendly platform, you can easily customize your bill of sale template to include all necessary details, ensuring clarity and accuracy. The built-in e-signature feature simplifies the signing process for both parties, eliminating the need for in-person meetings and paper documentation. 

Once signed, Contractbook securely stores your bill of sale in a centralized digital hub, providing convenient access for future reference or legal purposes. By leveraging Contractbook's innovative solutions, you can ensure a smooth and efficient vehicle sale experience while maintaining compliance with legal requirements. And be out on the road faster than you think.

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Key Terms of
Vehicle bill of sale

This contract is a Vehicle Bill of Sale agreement between a Seller and a Buyer for the transfer of ownership of a motor vehicle. It outlines the consideration (purchase price), payment method, vehicle description, warranties and covenants from the Seller, condition of the vehicle being sold "as is", disclaimer of warranties, governing law, and other terms related to the sale transaction.

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