Auto Bill of Sale – Some Questions Answered:
Description: Have you ever wondered what an auto bill of sale is all about? Here are some facts to understand.
Are you familiar with invoices? Of course, you know them as you have come across many receipts in your lifetime for the purchases that you have made so far, isn’t? This does not mean that invoices and receipts are one and the same as there are some variations between them. You can consider bill of sale as a combination of an invoice and a receipt. This means that in addition to acting as a tool for recording the transactions, it will also provide details about the specifics of the goods. The same thing happens in the case of auto bill of sale as well as it will provide complete details about automobile sold or that is meant for sales.
Who needs this document?
Some states need this document for vehicle registrations and for title transfers, but some states does not have this requirement. Still, any individual, who buys or sells a vehicle should have this document, even when they decide to use it for their own records too and not for any other purpose. When it comes to private used car market, this is the most commonly used document. For instance, let us consider that you are selling your car to your neighbor or any other known/unknown person; you will be using this document. One copy will be kept by you, while the other copy should be handed over to the purchaser to show the time to transferring the title of the vehicle and registering it on the name of the purchaser. When this is applicable for individual sellers, dealers generally handle all the paperwork to buyers, who purchase new or used vehicles from their lots.
What does the document actually do?
The auto bill of sale will:
- Act as the proof that the original owner has sold the automobile to a new owner.
- Provide a trace of the date of sale and the sale price of the automobile.
- Help the Department of Motor Vehicle to calculate fees
As against a formal bill of sale, some agencies operating in the automobile industry use the information present in the back of the title for completion of title transfer tasks. However, if you are a seller/buyer, you can still complete such a document for your records.
How to complete the document?
These documents are self-explanatory in nature. However, to make the job easier, there are templates available for this purpose. Generally, this document will ask for the following details:
- Information about the seller with his name, address, phone number, license number of himself or his driver and his signature.
- Details about the buyer with the same specifications like that of seller details
- The make, model, year of manufacture and the identification number of the automobile.
- The date of sale along with the cost of sale.
In the case of seller, he/she will keep the documents for their own records, while buyer will have to take his/her copy of document to the State Motor Vehicle Agency handling tasks related to title transfer.