Why You Need an Auto Bill of Sale Form before You Buy or Sell a Used Car

It is important to complete an auto bill of salespecific auto bill of sale form.
form when selling or buyinga used car. For theTo register a used car in other states, all that's
seller, an auto bill of sale form provides proofrequired is that thetitle assignment section on the
thattitle to the used car has been legallytitle be completed and signed. Many of
transferred. For the buyer, the autobill of salethesestates have added to the title assignment
form documents the purchase of the used car.section of the title theinformation that was
The auto bill ofsale form should contain:previously collected with separate documents
1. name and address of the buyer;(i.e.odometer disclosure statement, sales price/tax
2. name, address and signature of the seller;statements, etc.). In thesestates, an auto bill of
3. complete vehicle description, including thesale form is not required to register the used
Vehicle Identificationcarand is used by the seller/buyer to document
Number(VIN);the initial sale/purchase of theautomobile.
4. description of trade-in, if any;A promissory note form is a written promise to
5. purchase price of the vehicle.pay money to someone. Apromissory note form
Auto bill of sale forms are required in manycan be used to create a legally binding agreement
states to register the newlypurchased used car.whenfinancing the sale of personal property, such
These states usually require a state specific autoas a used car. You cancomplete a promissory
billof sale form that documents specificnote`s payment schedule to fit your needs. You
information such as the purchase pricefor taxset outthe terms of the loan in a secured
assessment or to obtain the actual mileagepromissory note form: how much is loaned,the
odometer reading of theused car. A generic autointerest rate, the rate of repayment and the
bill of sale form will not be accepted insecurity interest.
thesestates. You will need to obtain a state