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A bill of sale may or may not be required when selling a car, depending on the state or country. It provides protection for both the seller and buyer by helping to reduce fraud, settle disputes, and facilitate transactions by serving as proof of purchase. However, it does not establish ownership; it only confirms payment for the vehicle. Key elements to include in a bill of sale are the transaction date, names and addresses of both parties, a description of the vehicle, and the VIN. Some states may require the bill of sale to be notarized or submitted to authorities.