Bill Of Sale
What is a North Carolina Bill of Sale?
Whether you are buying or selling a car, the motor vehicle bill of sale is a necessary document to prove ownership of a vehicle.
In any transaction regarding the sale of a vehicle, the bill of sale, considered a legal document, will outline the information necessary to prove that ownership has transferred from the seller of the vehicle to the purchaser of the vehicle.
Generic DMV bill of sale forms can be found online or created; however, some states have specific guidelines for the information that must be included on each document. North Carolina has one set of guidelines for vehicles being sold by a dealership and another set for private sellers.
Motor Vehicle Bill of Sale from a Dealership in North Carolina
The North Carolina Division of Motor Vehicles requires all licensed dealers to provide the purchaser with a motor vehicle bill of sale. North Carolina calculates the use tax based on the sale amount listed on the DMV bill of sale document. A bill of sale is also necessary to obtain a title in North Carolina and to register your car in North Carolina.
A motor vehicle bill of sale provided by a licensed North Carolina dealer should include:
- Name and address of the buyer
- The date of the sale
- Name and address of the dealer, manufacturer, factory branch, distributor branch, or wholesaler that sold the vehicle
- The Vehicle Identification Number (VIN)
- The vehicle make, model, year, and body style
- The amount the vehicle is being sold for
- The amount of the purchaser’s cash down payment, if applicable.
- A description of vehicles used for trade-in and the amount credited to the purchaser for the trade-in, if applicable.
- The trade-in description (VIN, make, model, year, body style, odometer reading)
- The amount of finance charges and interest, if applicable
- The cost of insurance to the purchaser and an explanation of the type and amount of coverage, if applicable
- Any charges for investigations, service charges, and any other charges not listed above, plus the purpose for each.
- The amount of the net balance that the buyer owes
- Deferred payment amounts, time and schedule of deferred payments and to whom the payments will be made
Both the seller and the purchaser must sign the bill of sale. North Carolina requires the DMV bill of sale to be presented in order to register a vehicle in your name.
DMV Bill of Sale from a Private Seller in North Carolina
When purchasing a car from an individual, the bill of sale should contain the following information:
- The name and address of the seller and the purchaser
- Amount paid to the seller
- Accurate odometer reading
- Vehicle Identification Number (VIN)
- Make, model, year, series number, body type
- Date of sale
- Seller and purchaser signatures
The motor vehicle bill of sale should be signed by both the seller and purchaser and notarized to create an official document. In order to register the vehicle in the new owner’s name, the bill of sale must be presented.