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A motor vehicle bill of sale is a document that formalizes the transfer of ownership of a vehicle from seller to buyer, similar to a retail receipt but more comprehensive. For buyers, many states require this document for completing ownership transfers at the DMV and simplifying registration, as it includes essential vehicle details. It also enables buyers to verify the vehicle's history and perform their inquiries. For sellers, a bill of sale helps avoid potential issues with the new owner, providing a clear record of the transaction. Overall, the bill of sale is vital for both parties in a vehicle transaction.