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A bill of sale is not always required when selling a car; its necessity depends on the state or country of the parties involved. It serves as protection for both seller and buyer, helping reduce fraud, settle disputes, and facilitate transactions by providing security for payment. However, a bill of sale acts more like a receipt and does not prove ownership; it only indicates that payment was made. Typically, a bill of sale should include the transaction date, names and addresses of the buyer and seller, a description of the vehicle, and the vehicle identification number (VIN). Some states may require the bill of sale to be notarized or submitted.