Buying or selling a motor vehicle is a major financial transaction for most people. If you are planning on buying or selling a car, then you have likely done a lot of preparation, such as ensuring you receive or pay a price that seems reasonable to you. What you may have overlooked, however, is the importance of a bill of sale once your transaction is finally completed. A bill of sale is an extremely important document when buying or selling a car and a bill of sale template can help you during your own purchase or sale. Here are just four reasons why you need a bill of sale when buying or selling an automobile.
A signed bill of sale provides important legal protections to the buyer and even to the seller. For the buyer, the bill of sale proves that a transaction took place. This information is extremely important if something serious is wrong with the vehicle that the seller knew about but failed to notify the buyer of. Furthermore, without a bill of sale tickets on the vehicle, such as parking and speeding tickets, that are incurred by the new owner could become the responsibility of the previous owner. It is extremely important that when creating a bill of sale that it be signed by both parties.
A bill of sale for a car is much more complicated than the receipt you receive at your local supermarket or in most retail stores. In most states, a bill of sale for a car must include relatively detailed information, including the:
- Odometer reading
- Vehicle Identification Number (VIN)
This information can make registering the car in the new owner’s name much easier since this is also the information many states require during registration.
Smarter purchasing decisions
A bill of sale can also make it easier to make a smarter and more informed decision about the car being purchased. While the seller may have provided you with a vehicle history report, you may feel more comfortable carrying out your own check on the vehicle’s history. The information included on the bill of sale can be compared against a vehicle history report to ensure that the vehicle history report is accurate. Also, you can use the bill of sale to conduct your own inquiries into the vehicle’s history.
It’s the law
In some states, getting a bill of sale not only makes practical and financial sense, but it is also the law. Additionally, most states also layout requirements for what information must be included on a bill of sale. Some states even require that a bill of sale for an automobile be notarized. Find out your own state’s laws and remember that a bill of sale is not proof of ownership. For ownership, you will need a title transfer.
Writing out a bill of sale is not something that comes naturally to most people. Fortunately, a bill of sale template can help those who are selling or purchasing a vehicle ensure that their bill of sale covers all necessary information and protects them in case a dispute about the transaction arises later on.