Open Menu

    How to write a receipt when selling a car to an individual buyer

    Receipts are important for every purchase, whether it’s between individuals or from a business. You wouldn’t buy a sofa without some sort of proof of sale, so the same should go for a car.

    A well-written receipt is crucial for both sellers and buyers. It’s legal documentation of the transaction and is an easy way to provide peace of mind to both parties when trading a high-value item like a car.  When you sell your car to a professional buyer, like when you sell to a verified dealer on Motorway, they’re equipped to provide all the paperwork you need. However, if you sell to a fellow individual, it’s down to you to make the sale official.

    We’ll share tips on drafting useful receipts, so you can make sure you have what you need. 

    For more tips on how to sell your car, read our Top 10 tips article here, or to skip the hard work of selling your car to an individual, get your instant, free valuation on our homepage. 

    What is a car sale receipt for?

    A car’s sale receipt is different from a bill of sale – for total peace of mind, make sure you know the difference between the two. 

    Although a car sales receipt and a bill of sale sound like they would hold the same information, they don’t. A car sales receipt is your proof of purchase and payment, the bill of sale is mainly just detailed purchase information. 

    Car sale receipt

    🚗 Acknowledges the transfer of ownership and payment for a vehicle.

    📜 Typically includes details like vehicle make, model, VIN, sale price, payment method, purchase date, and signatures.

    🧑‍⚖️ Serves as proof of transaction but may not always be legally binding.

    🗂️ Provides a record of the sale, offering some level of protection against disputes or misunderstandings.

    Bill of sale

    🚗 Legally documents the transfer of ownership from seller to buyer.

    📜 Comprehensive details about the transaction, including seller and buyer information, vehicle description, sale price, warranties (if any), and signatures.

    🧑‍⚖️ Carries more weight in legal terms, often required by authorities for registration and taxation purposes.

    🗂️ Offers stronger legal protection for both parties, ensuring clarity and validity of the transaction.

    Essential information to include in a car sale receipt

    Drawing up a sales receipt for a vehicle is always a good idea. Make sure you include all the necessary information detailed in the table below.

    How to write a car sale receipt

    Think of the receipt as the official proof of payment.  It needs;

    • Both the buyer’s and seller’s address
    • The details of the exact vehicle being purchased
    • The sale price
    • The payment method 
    • Somewhere for both parties to sign 

    A bill of sale uses a receipt as a template but just goes into a little more detail. 

    Car sale receipt Bill of sale

    Seller Information: Full name, address, and contact details.

    Buyer information: Full name, address, and contact details.

    Vehicle details: Make, model, year, VIN (Vehicle Identification Number), mileage, and registration number.

    Sale details: Date of sale, agreed-upon sale price, and payment method.

    Signatures: Both parties’ signatures confirm the agreement and authenticity of the receipt.    		Seller and buyer information: Full names, addresses, and contact details.
    Vehicle description: Make, model, year, VIN, mileage, and any distinguishing features.
    Sale price: Agreed-upon amount in both numerical and written forms.
    Payment details: Method of payment and any relevant transaction references.
    Warranties or guarantees: Any warranties provided by the seller, including duration and coverage.
    Odometer disclosure statement: Declaration of the vehicle’s mileage at the time of sale.
    Signature and notarisation: Signatures of both parties, potentially notarised for added legal validity.

    Additional info to include:

    Depending on the condition of your car, and how much you sell it for, you may want to include even more details so you can prove the car was bought as seen. 

    1. Condition of the vehicle:

    Are there any defects or damages present?

    1. Sold ‘as is’ clause:

    This clarifies that the vehicle is being sold without warranties – implied or expressed. 

    1. Delivery details:

    Method of delivery and any associated costs or responsibilities.

    1. Seller’s disclosure statement:

    Declaration of any known issues or history of the vehicle, such as accidents or major repairs.

    1. Acknowledgement of receipt:

    Confirmation that the buyer has received all relevant documents and keys related to the vehicle.

    1. Legal disclaimer:

    Clarification of the document’s legal status and jurisdiction.

    Step-by-step guide: Writing a car sale receipt

    🧾Gather necessary information: Begin by gathering all the essential details about the vehicle, seller, buyer, sale price, and chosen payment method. This has to be accurate! 

    📝 Start with a header: Start the receipt with a clear header starting what it is you’re drawing up. ‘Car Sale Receipt’ is a good place to begin. Next, you need to date the paper and give a unique receipt number for easy reference and organisation.

    🧑‍🤝‍🧑 Seller and buyer information: You need to have a section that will house all relevant information for both the seller and the buyer. This includes their full names, current addresses, and reliable contact details, ensuring clarity and precision.

    🚗 Vehicle details: Here, you need a thorough and detailed description of the vehicle being sold, including its make, model, manufacturing year, Vehicle Identification Number (VIN), mileage, and registration number.

    💰Sale details: Here, outline the specific details of the sale. Eg. date of transaction, sale price (state this both numerically and in written form) and chosen method of payment for transparency and accountability.

    ✒️Signatures: Both the seller and the buyer need to sign the receipt with their signatures and dates. This makes the document a legal and authentic proof of purchase.  

    ‼️ Additional considerations: As mentioned above, you can include things like disclaimers regarding the vehicle’s condition or warranty details. This gives another layer of protection to the parties involved in the sale. 

    💾 Save a copy: Duplicate copies of the receipt, and make sure both the buyer and the seller have a version. Keep a personal copy for future reference and documentation. 

    Want a faster sale?

    Selling to an individual might mean a quicker negotiation, but by the time you’ve wrapped your head around the paperwork needed to make the transaction watertight, you may as well have sold to a pro. When your car is in Motorway’s online daily sale, you could have a deal agreed within 24 hours. Then, you enjoy free home collection and fast payment. 

    Interested in getting more money, easily? Take out your valuation on our homepage, now.

    FAQs

    Should you write a receipt when selling a car privately?

    Yes, writing a receipt is crucial for documenting the transaction and protecting both the buyer’s and seller’s interests, providing legal clarity and proof of purchase.

    Should I accept a bank transfer when selling a car?

    Accepting a bank transfer is advisable as it offers a secure and traceable payment method, providing both parties with peace of mind and facilitating a smooth and transparent transaction process.

    Ready to sell?

    Want to learn more about owning, maintaining, and selling your car?Check out more of our guides here, covering everything from finding buyers, to negotiating a good price, and completing payment safely. 

    Sell your car the Motorway way

    Find your best offer from 7,500+ dealers