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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 serves to protect both the seller and buyer by reducing fraud, settling disputes, and creating security for payment. It acts mainly as a receipt or proof of purchase, but it does not prove ownership. Key details typically included in a bill of sale are the transaction date, names and addresses of both parties, vehicle description, and VIN number. Some states may require the bill of sale to be notarized or submitted for registration.