If you are about to sell your car or buying a used one, then you should ensure that the sale is documented with an auto bill of sale form. For the seller, a bill of sale is beneficial as it provides evidence that the cars title has been legally transferred to new owner. For the buyer, an auto bill of sale documents the transaction and is the best way to prove ownership. There are a couple of things that each bill of sale form should contain. The names and addresses of both the buyer and the seller, a description of the automobile as well as the purchase price should all be documented.

An auto bill of sale form needs to be provided before a vehicle can be registered in the name of the new owner in most states. This law is in place for two main reasons. The first relates to the vehicles purchase price and its associated tax assessment. The second is concerned with the actual mileage of the used vehicle. By recording this at the time of re-sale, odometer fraud can be discovered down the track if this were to take place.

An auto bill of sale form that does not provide all the stated information will in many cases not be accepted and the car will not be fit for registration.

There are still a few states in which an auto bill of sale form is not necessary in order to register your vehicle. Notwithstanding it is still recommended to used car buyers to record all the relevant information at the time of sale in order to safeguard themselves from any disputes that could occur over the vehicle.

Writing an auto bill of sale form will take only moments but will help the buyer feel secure about their vehicle purchase and the money they have spent.