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A bill of sale is not always required for selling a car; its necessity depends on the state or country. It can protect both the seller and buyer by reducing fraud, settling disputes, and securing payment. However, a bill of sale serves more as a receipt and does not prove ownership of the vehicle. Key elements of a bill of sale typically include the transaction date, names and addresses of the buyer and seller, a description of the vehicle, and the VIN. Some states may require the bill of sale to be notarized or submitted for official purposes.