Why You Need a Bill of Sale
Dealing with money can turn any situation into a legal one. Nobody wants to be cheated out of a deal, and, often, people will look for ways to weasel a few dollars out of you. This is important if you are a new driver looking to buy or someone looking to sale. Having a bill of sale is also used for drivers when buying insurance. Taking 5-minutes to fill out this simple form will save both parties hours and potentially dollars down the line. Keeping documentation of your transactions will help you track how much money you spend, your inventory, and protect you in certain legal scenarios. In the case of selling your car, having a receipt will help prove that you are no longer the owner of the vehicle. If you’re the buyer of a vehicle, the bill of sale is important for registering the vehicle under your name. You will also be able to prove the value of the car. The DMV will estimate your car’s worth to calculate the Vehicle License Fee (VLF), if the real price is unknown. Often, the estimation is higher than the actual price of the vehicle. Therefore, presenting the bill of sale could save you money when paying the VLF. The state of California doesn’t require all vehicle sellers to fill out a CA DMV bill of sale form, however, you could lose important transaction information if you don’t use one.How Do You Use a Bill of Sale?
With the right information, filling out your bill of sale is simple. You’ll need to know the following information to fill out the form:- The name of the buyer and the seller
- The address of both parties
- The seller's signature
- The vehicle’s make, model, and year
- Vehicle Identification Number (VIN)
- Date of transaction
- Amount paid to the buyer