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A bill of sale may be required or optional when selling a car, depending on the state or country. It serves as a protective document for both seller and buyer by helping to reduce fraud, settle disputes, and facilitate transactions as proof of payment. However, a bill of sale does not establish ownership of the vehicle; it only confirms that payment has been made. Key elements typically included in a bill of sale are the transaction date, names and addresses of both parties, a description of the vehicle, and its VIN. Some states may mandate that the bill of sale be notarized or submitted to authorities.