A Pennsylvania bill of sale is a document that you use when buying or selling a car. There are many reasons why a bill of sale document is useful in Pennsylvania. A bill of sale form can be used whether you purchase a car through a dealership or from an individual. Most dealerships will create a bill of sale contract for you and you do not need to do anything other than sign it. However, knowing what a standard bill of sale includes is still important before making a car purchase from a dealership. You will want to understand everything that is on your bill of sale agreement before signing it at the dealership. Additionally, you may need to provide your own bill of sale for car purchases that you make from individuals. To make the car buying and selling process go more smoothly, get a comprehensive vehicle bill of sale package here. Continue reading to learn more about why you should use bills of sale in PA and how to employ a used car bill of sale next time you buy or sell a car in Pennsylvania.
Pennsylvania Bill of Sale Requirements
The Pennsylvania Department of Motor Vehicles (DMV) has several requirements relating to bill of sale procedures for buying and selling cars and motorcycles. The process for using a motorcycle bill of sale is the same as that for cars, for instance. There is no official DMV bill of sale form available in Pennsylvania, but you will be required to complete several different DMV forms when transferring ownership of a vehicle. Signing Pennsylvania bill of sale contracts is just part of the process for transferring vehicle ownership in the state. Before using a bill of sale for vehicle purchases, it is important to note that some documents for transferring vehicle ownership in Pennsylvania need to be signed in the presence of a notary or other official at the DMV. Both the car buyer and seller will be required to complete the process together, in person. You can create a bill of sale document or download a complete car bill of sale package here before selling or buying a car. You will then have your bill of sale forms ready before transferring ownership and you may sign them at the same time as your other DMV paperwork.
Pennsylvania Bill of Sale Rules for Vehicles Sold Under Market Value
If your PA bill of sale agreement states that the vehicle will be sold for less than fair market value, then there are a few rules that you must follow. When the purchase price on your bill of sale documents is significantly lower than the vehicle’s fair market value, additional taxes may be due to the PA Department of Revenue. This is because the Department of Revenue charges taxes based on the fair market value of a vehicle, rather than what it actually sells for. Issues can often arise when using bill of sale forms to transfer ownership between family members or when selling a car for less than it is worth for any other reason. Be aware that bill of sale contracts in Pennsylvania and other vehicle transfer paperwork may be audited to determine whether the PA Department of Revenue received the right amount of tax money from the car purchase. Furthermore, the bill of sale process may require you to complete an additional form to verify and explain the reason your vehicle was bought or sold below fair market value.
What a Pennsylvania Vehicle Bill of Sale is Used For
Even though a PA bill of sale form is separate from the other DMV paperwork required to transfer ownership of a vehicle, there are a variety of reasons that you may need a bill of sale in Pennsylvania. The DMV may need to see a car bill of sale in order for you to complete certain applications. For example, a bill of sale or vehicle title must be shown if you mistakenly receive a ticket or lapse of insurance notification on a vehicle you no longer own. Having a bill of sale document is also beneficial for your own record keeping purposes. Bills of sale contain pertinent information that you may need to refer to later on, such as the VIN, selling price and any other terms or conditions of the sale. Plan ahead by getting a Pennsylvania bill of sale online right here if you are thinking about buying or selling a car soon.
What a Standard Pennsylvania Bill of Sale Should Include
When buying or selling a car in Pennsylvania, bill of sale documents should include the same basic information. Whether you are using a bill of sale template or simply signing a dealership’s PA bill of sale paperwork, you need to know what information to look for. All vehicle bill of sale documents should include the following:
- The make, model, year and VIN number of the vehicle
- The names and signatures of the buyer and seller
- The buyer’s and seller’s contact information
- The date of the sale
- The sale price and any other conditions that were agreed upon
Find a comprehensive bill of sale package here to make a complete transaction that meets state requirements.