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A motor vehicle bill of sale is a document that records the transfer of a vehicle from the seller to the buyer, similar to a receipt, but with more detailed information. It is essential for buyers, as many states require it to complete the ownership transfer at the DMV and can streamline the registration process by containing necessary vehicle details. It also allows buyers to verify the vehicle’s history using the information provided. For sellers, the bill of sale helps prevent potential disputes by officially documenting the sale and transfer of ownership.