When selling a vehicle between private parties, a receipt or bill of sale is a good thing to include in the transaction. When signed and possessed by both parties, it shows a legal proof of sale and buy should any problem occur in the future. The bill of sale should be stored along with the title of the vehicle. You may never need to reference it, but if you should, you will be glad you have it.
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How to Write a Receipt or Bill of Sale
A proper bill of sale does not need anything more than a word processor or even handwritten note. What is vital are the items that it contains. It is a very simple document to write up. Included on a bill of sale should be the names of the seller and the buyer along with both of their signatures, the vehicle identification number (VIN) and a description of the vehicle being sold, the purchase price and the date at which the ownership of the vehicle changed hands. A receipt is more complicated if the seller is a dealer. Receipts are par for the course for dealerships, and they will undoubtedly have their own ledger book or computer program to produce bills of sale.
For private sellers, receipts show that a transaction has occurred between two or more parties. In the vast majority of cases there is never any need for them, but should a problem arise, a receipt or bill of sale may be necessary to prove that a purchase or sale was made.