Not all states legally require a bill of sale, while others need the document notarized to be recognized as valid. In this case, the lender will need the bill of sale for the vehicle if the borrower defaults on their loan agreements. There are instances when a bill of sale for a car may be used as security for a loan this is when someone pledges a car as collateral for a loan. While a motor vehicle bill of sale is essentially a sales agreement, it can get complicated. While it is beneficial for both parties, it helps your local department of motor vehicles (DMV) keep track of all car sales, so everything is documented with a valid paper trail. It is a hybrid legal document between the car buyer and the seller detailing the sale of the vehicle between the parties and records the transfer of ownership. A vehicle bill of sale is a record of the sale of a motor vehicle that acts as a receipt and invoice for the transaction. What is a Bill of Sale for a Car?Ī bill of sale confirms the sale of personal property or assets. Whether you are the buyer or seller, we share some helpful information below on a bill of sale for a car. In the same breath, a bill of sale is also necessary when buying a used car privately, as you will need proof of purchase for your local DMV. If you are planning on selling your car privately, it is wise to ensure you have a bill of sale form ready for your buyer to complete, even if it isn't state law where you reside. A motor vehicle bill of sale details the terms of the transaction and serves as written evidence that the vehicle was sold. A bill of sale is a legal document used to record a transfer of ownership when selling your car, aircraft, motorcycle, watercraft, or any other asset in exchange for money.
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