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In most states, a Vehicle Bill of Sale doesn’t need to follow a specific format. If that’s the case, some sellers simply scribble on a piece of paper and call it a Bill of Sale, but that is not recommended. Also, some states require the use of an approved Vehicle Bill of Sale form. Check with your local DMV to find out if you need to use a state-approved form.
The Vehicle Identification Number (VIN) is a unique code assigned to every vehicle authorized for sale in the United States. It’s typically a 17-character code and it can be found in the door frame, on the engine, around the steering wheel, or on the dash near the windshield of the car.
As long as the seller doesn’t lie about flaws or imperfections or take steps to hide flaws or imperfections, a buyer has little recourse after the fact if a car is purchased in “as is” condition.
Both documents serve a similar purpose. However, a Sales Agreement is used when a transaction is more involved and complex and usually includes several clauses specific to the sale, such as if the seller asks the buyer to pay the financing company directly to obtain the title. A Vehicle Bill of Sale is more straightforward and covers all the bases needed to transfer ownership of a motor vehicle without being overly complex.
Whether you use a Bill of Sale or not, any sale ostensibly generates a tax burden unless it involves items that are specifically excluded from being taxed. There are other taxes that may apply but as far as sales tax is concerned, private sales are not subject to sales tax as only merchants are authorized to collect it with a sales tax ID number. Exceptions are sales that require title transfers like vehicles, for which sales tax will be collected by either your home state or the state where the sale originated, depending on state law.