, a bill of sale needs to include key information about the vehicle, such as the VIN, make, model, year, and odometer reading. You should also list the names, addresses, and signatures of the buyer and seller, as well as the date and price of the transaction.

Completing a bill of sale is an important step in the private sale of a vehicle. In Arkansas, you don’t need a bill of sale for transferring ownership, but you may need it in certain circumstances. Bills of sale are proof of the completed transaction and can provide a layer of protection for both parties.

What is a bill of sale?

A bill of sale is basically a receipt for the private sale of a vehicle. Bills of sale only prove a transaction took place and outline the terms of agreement between the parties.

In Arkansas, the bill of sale does not transfer ownership of the vehicle—you need to complete a

title transfer

for that. The title certificate is the legal document certifying ownership of the vehicle. A bill of sale outlines the terms of your transaction with the other party in a private vehicle sale.

Is a bill of sale required in Arkansas?

In Arkansas, the Office of Motor Vehicles will accept a completed title in place of a bill of sale. However, bills of sale are required if:

You’re the seller and want to apply for a

sales tax

credit

You’re the buyer and there’s not enough room on the title for the seller to sign the vehicle over to you

If you need an additional bill of sale form, you can

fill one out

and follow the instructions on the form.

Even if it’s not required, completing a bill of sale when you buy or sell a vehicle is the wisest route. A bill of sale provides proof of the transaction and the terms of the agreement, which can be useful to have in your records.

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Buying a car in Arkansas

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What is required in an Arkansas bill of sale?

In Arkansas, your bill of sale must include all the basic information regarding the transaction, like the following:

Seller and buyer’s names, addresses, and signatures

Vehicle’s

make, model,

and year

Vehicle Identification Number

(VIN)

Sell date

Price paid

Odometer reading

If you’re the seller, you can apply for a sales tax credit as long as you have a bill of sale. This credit is only applicable if you plan to

to replace the vehicle you sold within 45 days before or after acquiring the vehicle.

What should I do after I get a bill of sale?

An Arkansas bill of sale is not sufficient for ownership transfers—it’s only a receipt. You’ll need to complete a title transfer to make the ownership swap official.

You can get a title transfer form at your local revenue office or

transfer the title online

It’s important to keep a copy of your bill of sale for your records. Keeping your bill of sale handy can protect you from any future legal disputes since the bill of sale serves as evidence of your agreement.

MORE:

How to get a rebuilt title in Arkansas

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