If you are thinking of selling your car or buying a used one, then you should ensure that the sale is documented with an auto bill of sale form. A bill of sale provides the seller with proof that the title for the car has been legally transferred to a third party. For a buyer, an bill of sale form is a record that the purchase of the automobile did in fact occur. It is necessary that each bill of sale form should include certain basic information. A complete description of the car including the vehicle identification number as well as the name and address of both the buyer and the seller must all be written down.

An auto bill of sale form needs to be provided before a vehicle can be registered in the new owners name in nearly every states. The main reason this is required is to record the vehicle purchase price for tax assessment as well as to record the odometer reading, which is used to prevent odometer fraud.

It is important to use a professional bill of sale form that records all of the necessary information. If any of the required information is not recorded many states will not acknowledge the form provided.

Although there are one or two states that do not require a bill of sale form in order to finalise your vehicle registration, consumers are still advised to fill in such a form for their own protection and peace of mind.

An auto bill of sale form can be written in only a few minutes, but will provide a lifetime of protection.