Motor Vehicle Bill of Sale (Used Car)

Motor Vehicle Bill of Sale (Used Car): a practical guide

A Motor Vehicle Bill of Sale (Used Car) is a written record of an agreed sale of a used car. It identifies the parties and vehicle, records the price, and gives them a place to describe any additional terms and sign.

What it's for

People use this document to keep a shared record of the car sale, including which vehicle is changing hands, the agreed price, and when the parties intend the handover to take place. It can help both sides refer back to what they agreed if they later have different recollections.

Use it for a straightforward sale of a used car between people or businesses. A sale involving financing, installment payments, a trade-in, a broker, or several linked vehicles may need more detailed paperwork. Registration, ownership paperwork, witness, notarization, and wording rules differ by country and region, so check local requirements or ask a qualified lawyer when the stakes are high.

Who uses it

• A person selling a used car directly to another person.
• A buyer purchasing a used car from an individual seller.
• A small business selling or buying a company car.
• A family or co-owners recording a sale between multiple sellers or buyers.
• A buyer and seller who want a written record alongside separate vehicle ownership paperwork.

Terms to decide on

Parties and authority

Use the full names of each seller and buyer, including every co-owner or co-buyer. If a company is involved, identify it and name the person signing on its behalf; confirm that the seller is authorized to sell the car.

Vehicle identity

Copy the VIN or chassis number from the vehicle and compare it with the ownership or registration records. Check the make, model, year, and registration plate details for accuracy, and resolve any mismatch before signing.

Price and payment

Write the agreed price and currency, and say how and when payment will be made. If payment is split, describe each payment and what remains due so neither side has to infer the arrangement.

Condition and known issues

State whether the buyer has inspected or test-driven the car and list any known damage, mechanical problems, missing parts, or agreed repairs. Describe specific conditions clearly rather than relying on a broad statement such as “as is.”

Odometer reading

Record the displayed mileage and its unit, such as kilometers or miles, as close to handover as practical. If the reading is known to be inaccurate, altered, or not a complete measure of the car's use, say so clearly.

Handover and included items

Specify the planned date and place for handover and what goes with the car, such as keys, manuals, or listed accessories. State when possession is expected to change and who will handle any separate ownership or registration paperwork.

Common mistakes

• Entering a VIN from memory or copying it without checking the number on the car. A single incorrect character can make it unclear which vehicle the record describes.
• Listing only one person when there are several owners or buyers. Include each party who is part of the sale and make sure the signature blocks reflect them.
• Writing the price without its currency or leaving payment timing unclear. Record whether payment is complete or describe what is still due and when.
• Using vague condition language while leaving known problems unmentioned. Name the issue, its location, and any repair or price adjustment the parties agreed to.
• Recording mileage without units or overlooking a reading that may be inaccurate. Note what the display showed and explain any known limitation.
• Signing before the parties agree on the handover date, included items, and who will manage separate transfer paperwork. Different assumptions can lead to problems after the car is delivered.

Before you sign

• Compare the VIN or chassis number on the car with the number in the document and ownership records.
• Check that every seller and buyer is named and that any company representative is authorized to sign.
• Confirm the price, currency, payment method, and any remaining payment dates.
• Inspect the car and write down known issues, agreed repairs, and items included in the sale.
• Record the odometer reading with its unit and explain any known inaccuracy.
• Agree on the handover date, place, keys, and any separate paperwork each side will provide.
• Check local rules for required wording, witnesses, notarization, registration, or notice periods.
• Read every entry and additional term together, correct errors, and make sure each party keeps a copy.