When you buy a new car from a dealership, things are quite straightforward. But not everyone can afford a new car, so transactions involving second-hand vehicles are widespread and can be very beneficial for both parties involved.

However, these private sales involve some degree of uncertainty, both for the buyer and the seller. While certain aspects are hard to control in such transactions, the payment isn’t one of them.

By issuing a car sale receipt, written proof exists that a certain amount was paid for a particular vehicle.

What Is a Car Sale Receipt?

When a person buys a used car from a private seller, an auto sale receipt has to be issued to prove that a certain amount was paid for a particular car.

If the seller doesn’t pay all the money upfront, the car sale receipt stands as proof of the down payment they made and shows how much they still have to pay at a later date. Second-hand cars are usually sold at a lower price than the one the first owner had to pay.

But if they made some improvements to the car and that meant they made a profit from the sale, that is considered revenue and they need to declare it. So, they will need to save the private car sale receipt carefully.

For the buyer, the car sale receipt is proof that they paid the money and have no debt to the seller, and they may also need it when registering the car on their name.

What Should Be Included in a Car Sale Receipt?

The used car sales receipt is a formal document, and specific pieces of information need to be included in all versions. To make sure you create a proper one, you need to use a car sale receipt template. This is what you should include in the car sale receipt:

  • The date of the sale.
  • The seller’s and buyer’s identification information: name, mailing address, phone number.
  • Vehicle information – in this section, you need to identify the car, with the following information: VIN, registration #, make, model, year, mileage, color, add-ons.
  • The sum and an acknowledgment of the payment, mentioning if it was the entire sum or just a deposit.
  • How the payment was made: cash, check, or another way.
  • Both parties’ signatures.
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The car sale receipt offers an element of certainty for both parties involved in a type of transaction that is less secure and regulated.

Since used car sales are quite common, most people use a private car sale receipt at some point. If you need one and aren’t sure how to write it, start from a good car sale receipt template. That way, the information will be complete and well organized.

At CocoSign, you get an excellent template for a car sale receipt, as well as every other type of template you can think of, all well-crafted and easy to use.


CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.