Do I need a bill of sale when buying from a private seller?

In most states yes, and even where it is not strictly required by the DMV, you should still have one. The bill of sale is your proof of purchase, the official record of the price (which determines sales tax), and the document that protects both sides if a dispute comes up later. Many states require a notarized bill of sale specifically for private vehicle sales.

How do I verify a title is real?

Compare the VIN on the title to the VIN on the dashboard (visible through the windshield) and the driver-side door jamb sticker. They must match exactly. Look for any "DUPLICATE," "SALVAGE," "REBUILT," or "FLOOD" branding on the title. Make sure the seller's name on the title matches their photo ID. If the title looks photocopied, has correction fluid, or has a name other than the seller's, walk away.

Should I run a vehicle history report?

Yes, every time. Run a paid Carfax or AutoCheck report and a free NHTSA recall check at nhtsa.gov/recalls. The history report shows accidents, title brands, odometer history, and prior registrations. The NHTSA check shows open safety recalls. Spending $25 on a history report has saved buyers tens of thousands of dollars.

What odometer reading should I record?

Record the exact mileage on the day of sale on the bill of sale. Federal law requires an odometer disclosure for any vehicle under 20 model years old (the rolling federal exemption now covers vehicles 20+ model years old). The seller must certify whether the reading is actual, not actual, or exceeds mechanical limits. Mismatch between the bill of sale, title, and history report is a giant red flag.

What should I check on the test drive?

Start cold (engine should not be already warm when you arrive). Listen for ticks, knocks, or smoke at startup. On the road: brakes (any pulling, vibration, or grinding), steering (any pulling, looseness), transmission (smooth shifts, no slipping), AC and heat both. On a hill, see if it holds gear. After the drive, look under the vehicle for fresh leaks.

When should I walk away?

Walk away if: the seller will not let you see the title before you pay, the title is in someone else's name, the VIN does not match across spots, the seller pressures you to decide today, the price is much lower than market, the car has obvious flood damage (musty smell, water lines, corroded electronics), or the seller will not let you do an independent pre-purchase inspection. Any one of these is enough.

Cashier's check made out to the seller (after they hand you the signed title) is the standard. Wire transfer works for higher-priced vehicles. Avoid handing over large amounts of cash with no receipt - the bill of sale is your receipt either way, but cash is the hardest to recover if something goes wrong. Never pay before you have the signed title in hand.

Should I get a pre-purchase inspection?

For any vehicle priced over a few thousand dollars, yes. A mechanic will charge $100 to $200 to put it on a lift and check the things you cannot see in a parking lot: frame damage, leaks, brake life, tire wear patterns, exhaust condition. If the seller will not let you take it to a mechanic, that is itself the answer about whether to buy it.

Buying a Used Car from a Private Seller

Buying private-party can save you thousands over a dealer, but the protections you get on a dealer lot (title check, lemon laws in some states, financing handled for you) are now your job. Here is the checklist.

Before you go: pre-screen the listing

Ask for the VIN over text or email. Run it through Carfax or AutoCheck before you drive anywhere. A seller who refuses to share the VIN is hiding something.
Check the NHTSA recall database at nhtsa.gov/recalls (free) for any unrepaired safety recalls.
Search the price. Compare to KBB private-party value, Edmunds, and at least 5 similar listings on Autotrader, CarGurus, or Facebook Marketplace. A price 25% below market is a warning sign, not a deal.
Confirm the seller is the titled owner. If they say "my cousin's selling it for me," walk away. Title transfer requires the named owner's signature.

Documents to verify in person

Bring a flashlight, the VIN you wrote down from the listing, and a way to take photos. Verify all three before any money changes hands.

The original title (not a photocopy). Check for "DUPLICATE," "SALVAGE," "REBUILT," "FLOOD," or "JUNK" branding. Confirm the seller's name matches their ID.
VIN match. Compare the VIN on the title to the dashboard VIN (visible through the windshield from outside) and the driver-side door jamb sticker. All three must match.
Odometer reading. Photograph it. Compare to the title's last recorded reading and to the Carfax history. Big drops are odometer rollback fraud.
Current registration showing the vehicle has not been junked or surrendered.
Lien status. If a lien is listed on the title and not released, the seller does not have clean title to transfer. Do not buy until the lien is paid and the lender releases the title.

The walk-around and test drive

Approach the car as if it might be hiding something. It probably is. Most are minor.

Cold start. The engine should be cold when you arrive. A pre-warmed engine hides startup problems. If it is warm, ask why.
Panel gaps. Uneven gaps, mismatched paint, or fresh paint on a non-collision area suggest body work. Use a magnet on steel panels (it will not stick to body filler).
Underneath. Look for active leaks, frame rust, kinked exhaust, or any welded sections that should not be welded.
Test drive (at least 20 minutes). Highway speed for transmission, side streets for steering and brakes, a steep hill for power and to test the parking brake.
All electronics. Every window, mirror, AC, heat, defrost, infotainment, and warning light. Check the headliner for water stains (sunroof leaks are expensive).

Pre-purchase inspection by an independent mechanic

For any car worth more than a few thousand dollars, take it to a mechanic of your choosing. Cost: $100 to $200. They will put it on a lift, check frame straightness, brake pad life, tire wear patterns, and run a diagnostic scan. The mechanic's report often saves multiples of its cost in negotiation, or it tells you to walk away.

A seller who refuses an independent inspection is telling you something. Listen.

What goes in the bill of sale

Your state may require specific fields, but every bill of sale should include:

Buyer and seller full legal names and addresses
Date of sale
Year, make, model, body style, color
VIN (full 17 characters for any vehicle 1981 or newer)
Odometer reading and disclosure (actual / not actual / exceeds mechanical limits)
Sale price and payment method
"As-is" language if applicable (most private sales)
Signatures of both parties (notarized in states that require it)

Use our Notarization Checker to see whether your state needs a notarized bill of sale and what other documents are required.

Day of sale: the order of operations

Verify title, VIN, and odometer one more time.
Both parties sign the bill of sale and the title (where indicated for transfer).
Buyer hands over payment.
Seller hands over the signed title and a copy of the bill of sale. Each party keeps one signed bill of sale.
Seller removes their license plates (in most states the plates stay with the seller, not the car).
Buyer goes to the DMV within the state's deadline (typically 10 to 30 days) to title and register.

Get the bill of sale done right

A state-specific, completed bill of sale removes the guesswork. Pre-filled with all required fields for your state, including notary block where needed.

Create a Vehicle Bill of Sale - $5 → Add a Vehicle POA

A Vehicle Power of Attorney lets the buyer handle DMV paperwork without the seller present, useful for out-of-state buyers or when one party cannot make the title transfer trip.