The buyer of a used car will need a used car bill of sale to register the vehicle at the DMV. The bill of sale allows the state to calculate auto sales tax. It also documents the identities of the buyer and seller, as well as identifying the vehicle by VIN number to help protect against the sales of stolen vehicles.
- Find used car bill of sale templates online. An unofficial DMV web site online provides sample bill of sale forms by state. Check out the bill of sale resources at DMV.org. Enter your state of residence, and click into a sample bill of sale form to see what is included in this document
- Print out bill of sale forms. Make paper copies of bill of sale forms to keep on hand when you are shopping at private party used car sales
- Take the bill of sale form with you to the closing. When you have decided you're ready to buy, bring the bill of sale along with you, and collect the title from the seller. The buyer and seller should go together to a notary to sign over the title, and possibly to the DMV to take care of any other paperwork concerns
How to Fill out a Used Car Bill of Sale with Payments
In most cases, a used car bill of sale only includes the sales amount that was paid for a vehicle by the buyer to the seller. However, there may come a time when you want to sell a vehicle to a buyer who may not be able to pay you all of the money for the car at one time, or maybe you have made an installment agreement with the buyer. If this is the case, you need to know how create a vehicle bill of sale form that informs interested parties that the vehicle has not been paid for in full.
Find an Acceptable Bill of Sale Template
You need one that indicates that a deposit only has been made and that a balance on the vehicle remains. Look for forms that mention a "Promissory Note".
Find a Promissory Note Form Template
Search for a Promissory Note form. You don't need a complicated Promissory Note. Just make sure it includes the following:
- Name of Maker (You) and name of Borrower (Buyer)
- Date of the agreement
- Amount of deposit or down payment
- Amount of monthly payments
- Date on which first payment is due (and subsequent due dates)
- How the default (non-payment) of the loan will be handled
Fill Out the Forms
Fill in the blanks on both template forms. Make sure to calculate payments correctly and make sure to list how long you will wait in the event that the loan goes into default. You don't want to have to wait for many months before you can reclaim a vehicle due to non-payment.
Consider a Notary Public
You should consider have the documents notarized in order to make them more credible should you need to take the buyer to court for default or non-payment on the vehicle contract.