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A bill of sale may be required when selling a car, depending on state or country regulations. It protects both the seller and buyer by helping reduce fraud, settle disputes, and secure payment transactions. While it serves as proof of purchase, it does not prove ownership of the vehicle. A bill of sale typically includes the transaction date, names and addresses of the buyer and seller, a description of the vehicle, and its VIN number. Some states might require the bill of sale to be notarized or submitted for official records.