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A bill of sale is not always required when selling a car, as this depends on the state or country of the parties involved. It serves to protect both the seller and buyer, reducing fraud, settling disputes, and providing security for payment. While it acts as proof of purchase, it does not prove ownership of the vehicle. A typical bill of sale should include the transaction date, names and addresses of the buyer and seller, a description of the vehicle, and the VIN number. Some states may require the bill of sale to be notarized or submitted to relevant authorities.