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Matthew demonstrates how to create a vehicle bill of sale using Lego templates in his tutorial. Viewers can access the templates through a link provided in the video description. He guides viewers on how to choose the relevant form, fill in details such as date of sale, car description, brand, model year, type, color, VIN number, current mileage, and additional information. It is recommended to pick the state that will govern the document. The flexibility to add information later is highlighted as a useful feature.