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A bill of sale is not always required when selling a car; its necessity varies by state or country. However, it provides protection for both the buyer and seller by helping to reduce fraud, settle disputes, and facilitate transactions, functioning as proof of purchase rather than a contract. While it serves as evidence of payment, it does not establish ownership of the vehicle. A typical bill of sale includes the transaction date, names and addresses of the buyer and seller, a description of the vehicle, and its VIN number. Some states may require the bill of sale to be notarized or submitted to authorities.