What Is an Automobile Bill of Sale?

Verify that your bill of sale is correct before signing anything.

An automotive bill of sale is a legally binding document designed to protect the rights of both buyer and seller. Every piece of information on the bill of sale is vital and should be double-checked prior to signing.

Definition

In essence, a bill of sale is a document displaying the voluntary transfer of a car from one person to another, and is considered a legally binding contract.

Absolute Bill of Sale

An "absolute" bill of sale is simply a receipt, and most often contains only that information that concerns the sale. These include the date, car, description, odometer reading and cost.

Conditional Bill of Sale

A conditional bill of sale is given whenever a car is financed, and provides documentation for the seller that money is owed. These may include the down payment, money owed, payment terms and loan collateral.

Vehicle Description

A bill of sale must include the vehicle's VIN (Vehicle Identification Number), make, model, color and odometer reading.

As-Is vs. Warrantied

Most used cars are sold as-is (without a warranty), which indicates that the buyer is completely responsible for any vehicle imperfections. The buyer assumes all risks and responsibilities for the car at the time of signing.

References

• Law Depot: Bill of Sale FAQ
• Boatbillofsale: Bill of Sale FAQ
• US Legal: Georgia Bills of Sale Forms