Bill of Sale for a Project or Unregistered Car
A car that has been sitting under a tarp for ten years is still a car the law cares about. The bill of sale for a project or non-running vehicle is mostly the same as any other private-party sale, with a few extra disclosures that protect you from buyer regret and DMV headaches.
Three common project-car situations
Non-running but titled. You have the title in your name, the car has not been registered in years, and it does not currently run. Easiest to sell. Standard bill of sale with a "non-running, as-is" disclosure.
Running but expired registration. Title is good, you let the registration lapse. The buyer pays back fees at the DMV when they register, but the sale is otherwise normal.
No title in your possession. Hardest. The previous owner gave you a bill of sale only, the title was lost, or the car was given to you by family. You may need a bonded title or a duplicate title before you can sell legally.
What the bill of sale should disclose
- Make, model, year, VIN, current odometer reading (or "exempt" if over 10 years old)
- Sale price
- "Non-running" or "for parts and restoration only" if applicable
- Last year the vehicle was registered
- Known mechanical condition (engine seized, transmission out, etc.)
- "As-is, no warranty, express or implied"
- Whether the title is in hand and clear of liens
- Buyer and seller signatures (notarized if required by your state)
Odometer disclosure for older vehicles
Federal law requires odometer disclosure for most vehicles, but cars over 10 model years old (and starting 2031, over 20 years old for vehicles built 2011+) are exempt from the federal requirement. State law can still require disclosure. The bill of sale generator handles this for you - check the box for "exempt" if the vehicle qualifies, or write the actual reading.
"Title jumping" - the trap of the eager buyer
Title jumping is when a buyer signs the title from you but does not register the vehicle in their name, then sells it to a third party. The third party tries to register and finds your name still on the title.
While that is happening, the car is technically registered to you. Parking tickets, tolls, and any accident the buyer or third party causes can come back to you. In some states title jumping is a criminal offense for the buyer, but the seller can still face administrative penalties.
How to protect yourself:
- Sign the title at the same time as the bill of sale, with both names dated the same day
- File a notice of sale with your DMV (most states have an online form)
- Remove your license plates if your state attaches them to the vehicle
- Cancel insurance and registration on the day of sale
If you do not have the title
Three common paths:
- Apply for a duplicate title. If the title is in your name and you simply lost it, this is the right route. Most states process duplicates in 2 to 6 weeks for $20 to $50.
- Apply for a bonded title. If the title is not in your name (you bought with a bill of sale only), most states let you post a surety bond (typically 1.5x the vehicle value) and obtain a "bonded title" that becomes a regular title after 3 years.
- Use a Vermont-style registration. A few states (notably Vermont) issue registration based on a bill of sale alone for vehicles over 15 years old. Out-of-state buyers sometimes use this to "wash" a title, but this is increasingly being challenged. Use only with full disclosure.
Selling for parts only
If the buyer is buying for parts and the car will not be returned to the road, the title still needs to transfer or be surrendered:
- To a salvage yard: sign the title and the bill of sale. The yard surrenders the title to the state and applies for a salvage or junk title in their name.
- To a private buyer for parts: same as a regular sale. The buyer can later request a "non-repairable" or "junk" title from the DMV when they no longer want to register the car.
List "for parts/restoration only" on the bill of sale to make the buyer's intent clear.
Insurance and the days between
The hand-off moment matters. Once you sign the title and bill of sale, the buyer becomes the legal owner. If they cannot move the car immediately:
- Get the buyer to provide proof of insurance covering the vehicle from the moment of sale
- Note on the bill of sale the date and time of transfer
- Cancel your own insurance the day after the sale
- Refuse to let the car remain on your property without a written agreement and a removal deadline
Sales tax on private project-car sales
Sales tax is the buyer's responsibility, paid at the DMV when they register. The DMV calculates tax on the bill of sale price or the state's NADA-style book value, whichever is higher in some states. Lowballing the price on the bill of sale to dodge tax can trigger a DMV review and is fraud in most states.