Writing a Successful Vehicle Bill of Sale – Top Steps to Follow

An Auto bill of sale form is needed in a lot of states for the registration of used cars that are purchased newly. Such kinds of states generally need an auto bill of sale that is state-specific, which documents all the particular details – like getting real odometer / mileage reading of the used vehicle or the purchase price for tax assessment. In such states, there is no acceptance given to a generic auto bill of sale form. A state specific auto bill of sale form must be obtained. Here are some of the most important steps that you should follow at the time of writing a bill of sale for vehicle in a successful way.


It is among the most vital aspects of a Vehicle Bill of Sale document in most states. Whether you are selling or buying, you have to be clear regarding your liability. Make sure that you mention whether the car is being sold in an “As-Is” fashion. In that case, the purchaser will assume all the responsibility for the vehicle – including repairs in the future. Alternatively, you have to mention whether you are selling the car with a limited warranty.

Personal Safety

During sale or purchase of a car from some unknown party, it is important to be mindful of personal safety. You need to have a legally valid document which specifies where exactly the transaction would occur. It is best to get the transaction carried out in a safe spot, where the transfer of money would be done, such as the bank of the seller or the buyer. You also need to be careful in case the other party attempts to change the location of the car delivery. There could be risks involved in that case.


You have to use a Bill of Sale to detail all the important responsibilities, which can reduce the risks of conflict, writing all the steps of transfer. There are plenty of DMV requirements that a car bill of sale in Alabama needs to mention. Your Bill of Sale must address all the important issues, like:

  • Types of documents needed for transfer
  • Use Tax
  • Transfer fee needed by DMV
  • DMV requirement for odometer disclosures
  • DMV requirement for smog certification

Your bill of sale in Alabama needs to explain clearly whether you – the seller, or the buyer, would be responsible for the completion of the requirements aforementioned. For instance, rules and regulations in many states mention that the purchaser bears the responsibility for use tax and transfer fee. This should be reflected by your bill of sale terms.

Financial Safety

Once you document all the vehicle as well as buyer and seller details, you have to include details regarding the mode of payment. You also need to include the exact sum that both parties have consented to. The date of sale must be included as well. Keep in mind that this document serves as the sale receipt, and thus – it is essential to put in a date. It is also necessary to document the date of sale because the DMV in almost every state demands that the title transfer of a car occurs within a specific number of days after the sale date. The payment method must be mentioned as well, which can help safeguard the seller.

Kai Alana

The author Kai Alana