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A bill of sale is not always required when selling a car; its necessity varies by state or country. It protects both seller and buyer by reducing fraud, settling disputes, and facilitating transactions as a receipt or proof of purchase, but it does not confer ownership. Key elements typically included in a bill of sale are the transaction date, the names and addresses of the buyer and seller, a description of the vehicle, and its VIN. Some states may require the bill of sale to be notarized or submitted to authorities. Remember, while useful, a bill of sale does not establish legal ownership of the vehicle.