An Alabama auto bill of sale must identify the vehicle by VIN, make, model, and year; record the odometer reading (unless the vehicle is exempt), the exact sale price, and the date of sale; and list the full legal names and addresses of both the buyer and the seller, with signatures from both parties. The document has to show that ownership actually transferred, not that the parties agreed to transfer it later. You don’t need to use a state form. A handwritten document, a dealer invoice, or any other sales paper works as long as every required detail is on it.1Legal Information Institute. Alabama Administrative Code 810-5-1-.246 – Bill of Sale, Invoice or Other Sales Document – Minimum Requirements
The Required Details, Item by Item
Every Alabama bill of sale needs to carry the following information:
- Vehicle Identification Number (VIN), make, model, and year
- Odometer reading at the time of sale, unless the vehicle qualifies for an exemption
- Exact dollar amount the buyer paid
- Calendar date of the transaction
- Full legal name and address of the buyer
- Full legal name and address of the seller
- Signatures of both parties
The administrative code frames these as minimum requirements. Adding more detail is fine; leaving any of them off puts the document at risk of being rejected by the County Licensing Official when the buyer tries to register the vehicle.1Legal Information Institute. Alabama Administrative Code 810-5-1-.246 – Bill of Sale, Invoice or Other Sales Document – Minimum Requirements
One nuance worth understanding: the administrative code applies this bill-of-sale rule specifically to vehicles not subject to Alabama’s Certificate of Title Act. For a titled vehicle, the assigned title is the primary transfer document and the bill of sale supplements it. For a vehicle exempt from titling, the bill of sale is the main proof of ownership and may be the only ownership paper the buyer ever receives.
When the Odometer Reading Is Required
Federal law requires the mileage on the bill of sale for most vehicles, with a handful of exemptions. You can leave the odometer line blank if the vehicle:
- Has a gross vehicle weight rating over 16,000 pounds
- Is not self-propelled, or
- Is at least 10 model years old at the time of sale2eCFR. 49 CFR Part 580 – Odometer Disclosure Requirements
For sales in 2026, the 10-year exemption covers vehicles with a model year of 2016 or earlier. If the vehicle doesn’t qualify for any exemption, the reading on the bill of sale is mandatory and has to be accurate. Rolling back a reading or writing a number you know is wrong is a federal offense.
Signatures and Notarization
Both the buyer and the seller have to sign. Without both signatures, the bill of sale has no legal weight; the signatures are what confirm the terms and the transfer.
Alabama does not require every private bill of sale to be notarized. Individual counties, however, may require notarization before the County Licensing Official will accept the document for title or registration purposes. If you aren’t sure what your county expects, call the license office before closing the sale. Having the signatures notarized anyway is cheap insurance against a dispute over authenticity.
Using the Bill of Sale to Register the Vehicle
Once the sale is done, the buyer has 20 calendar days to register the vehicle with the local County Licensing Official, either by transferring an existing plate or buying a new one. During that 20-day window, keep a legible copy of the bill of sale in the vehicle if the vehicle is not subject to Alabama’s titling requirements. For titled vehicles, the owner’s permit copy of the title application or an official temporary registration receipt can be carried instead.3Alabama Legislature. Alabama Code Title 40 Revenue and Taxation 40-12-260
Missing the 20-day deadline triggers a flat $15 penalty plus interest.4Alabama Department of Revenue. In Which Situations Does the State of Alabama Charge a Delinquent Penalty for the Registration of a Motor Vehicle Failing to meet the registration requirements altogether is a Class C misdemeanor under Alabama law.3Alabama Legislature. Alabama Code Title 40 Revenue and Taxation 40-12-260
The sale price written on the bill of sale is what the county uses to calculate sales tax. Alabama’s state sales tax on vehicles is 2%, with county and municipal taxes added on top.5Alabama Department of Revenue. State Sales and Use Tax Rates The title transfer fee is $15.6Alabama Department of Revenue. Motor Vehicle Certificate of Title Fee You’ll also owe ad valorem property tax, assessed against the vehicle’s market value. Budget for all of this before the 20-day clock runs out.
Write the Real Sale Price
Some private parties agree to put a lower number on the bill of sale so the buyer owes less tax. This is tax fraud. County officials routinely spot prices that fall well below a vehicle’s market value, and when they do, they can assess tax based on fair market value instead of the written figure. The savings aren’t worth the penalties, interest, or exposure to criminal liability for filing a false document with a government agency.
What the Seller Should Keep
Selling the vehicle doesn’t automatically take your name out of state records. Alabama requires the license plate to stay on the vehicle during the transfer, and the buyer is responsible for registering it in their own name. If the buyer never does that, you stay listed as the last-known owner, and toll violations or traffic citations issued to the vehicle can come back to you.
Protect yourself by keeping a signed copy of the bill of sale showing the date, the buyer’s name and address, and the sale price. That copy is your proof of when ownership transferred if a dispute ever surfaces. Alabama requires dealers to print a warning on the bill of sale about the 20-day registration deadline; private sellers aren’t under that duty but should still mention it to the buyer and make sure the key facts on the document are legible.3Alabama Legislature. Alabama Code Title 40 Revenue and Taxation 40-12-260
Vehicles Where the Bill of Sale Is All You Get
Not every vehicle in Alabama needs a certificate of title. For the categories below, the bill of sale is the primary ownership record rather than a supporting document, so the content requirements matter even more. Common exempt categories include:
- Any motor vehicle more than 35 model years old
- Trailers, semitrailers, and travel trailers more than 20 model years old
- All utility trailers regardless of age
- Four-wheeled low-speed vehicles with a top speed of 25 mph or less and a gross weight under 3,000 pounds
- Off-road vehicles more than 10 model years old
- Mini-trucks, motor-driven cycles, implements of husbandry, and special mobile equipment
These age-based exemptions roll forward on January 1 each year, so a vehicle that was titled when new may become title-exempt later.7Alabama Legislature. Alabama Code 32-8-31 – Exemptions If you’re buying a title-exempt vehicle, store the bill of sale somewhere you won’t lose it. Reconstructing one from a private seller years after the fact is rarely practical.