What Does a Bill of Sale for a Car Have to Include?

A car bill of sale is a legally binding document that records the sale or transfer of a motor vehicle. Most states require automotive transactions to be accompanied by a bill of sale. Although it may be possible to make your own bill of sale, it's best to obtain a state-specific bill of sale from your motor vehicle office. This form is usually obtained for free from the office or downloaded online. Contact your motor vehicle office to determine how to acquire a bill of sale.

Information on Both Parties

A bill of sale must contain pertinent information on both parties: the buyer and the seller. The form should contain the buyer and seller's full names, as well as their addresses and telephone numbers. Other information, such as either person's driving license number, may be required as well. It's best to check with the specific state to determine if anything else is necessary.

Vehicle Information

The bill of sale must contain information about the property being transferred. In this case, the property is a vehicle. In addition to the year, make and model, the 17-digit VIN (Vehicle Identification Number) is also required. States use the VIN when registering the vehicle; it's a unique identifier similar to a serial number. The car's color is usually required, as well its current odometer reading.

Terms of the Sale

The terms of the sale, such as the sale price and the date, are required in the bill of sale. A statement of warranty is usually included with the bill of sale. For example, if the car is being sold "as is," a statement noting this would be added to the bill of sale language in the terms of the sale. Likewise, if any warranty is offered, it would be disclosed.

Odometer Disclosure

Many, but not all, states require the completion of an odometer disclosure statement. This may be a separate form coupled with the bill of sale, or the disclosure may be written into the bill of sale. The exact procedure varies among states. The odometer disclosure is used to point out any odometer discrepancies, such as a non-functional odometer or a vehicle that otherwise displays the incorrect mileage. If the odometer reading is true and accurate, the odometer disclosure would point this out.