For what purpose is a Bill of Sale most commonly used?

A Bill of Sale serves as a crucial document in the transaction process when purchasing a vehicle, acting primarily as a receipt that confirms the sale has occurred. It provides proof of the purchase for both the buyer and seller, detailing important information such as the purchase price, vehicle identification number (VIN), and a description of the vehicle. This document can be important for future reference, such as when the buyer needs to register the vehicle or establish ownership for insurance purposes.

While some people may consider the Bill of Sale in relation to reimbursement for insurance claims, maintenance records, or DMV registration, its most immediate and significant role is to serve as an official record of the transaction itself, validating that the money has exchanged hands for the vehicle involved.