Selling a car or a boat in the Hoosier State should be simple, but honestly, it’s usually a headache. Most people think a handshake and a scribbled note on a napkin count as a legal state of Indiana bill of sale, but the Bureau of Motor Vehicles (BMV) is way pickier than that. If you don’t get the details right, you’re looking at a rejected title application or, worse, being held liable for a car you don't even own anymore.
It happens.
You sell your old Chevy to a guy down the street. He says he'll "take care of the plates." Three weeks later, you get a notice that the car was abandoned on I-70. Because you didn't have a properly executed bill of sale and didn't notify the state, you're the one stuck with the towing bill. It’s a mess.
Why the State of Indiana Bill of Sale Actually Matters
Basically, this document serves as your receipt. It’s the "proof of purchase" that protects both the buyer and the seller. In Indiana, the BMV specifically looks for Form 44237, which is the official Bill of Sale. While you can sometimes get away with a generic version, using the state-sanctioned form makes the title transfer go a whole lot smoother.
The law is pretty clear: if a vehicle's title doesn't have enough room to record the sale price, or if the seller isn't the name currently on the title (like in an estate sale), you must have a bill of sale. Even if the title is pristine, having that paper trail is your best defense against future legal drama.
Think about the tax implications. Indiana collects a 7% sales tax on vehicle purchases. If you leave the "purchase price" section blank or vague, the BMV might use the NADA "fair market value" to determine the tax. If you bought a junker for $500 but the book says it's worth $3,000, you’re going to be annoyed when that tax bill hits. A clear bill of sale prevents that overcharging.
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What Needs to Be on the Paper?
Don't overthink it, but don't be lazy either. A valid state of Indiana bill of sale needs specific ingredients to satisfy the folks behind the glass at the BMV.
First, the basics. You need the full names and addresses of everyone involved. If there are two owners on the title joined by "and," both have to sign. If it says "or," you’re usually fine with just one. Then comes the vehicle info. This isn't just "blue Ford." You need the Year, Make, Model, and—most importantly—the 17-digit Vehicle Identification Number (VIN). One typo here ruins the whole thing.
The Odometer Statement
This is where people get tripped up. For most vehicles under 20 years old, you have to disclose the exact mileage. If the odometer is broken or has "rolled over," you have to check the specific box stating the mileage is not accurate. Lying about this is a federal offense. Seriously. If the BMV suspects odometer fraud, they won't just reject your paperwork; they’ll flag the vehicle.
The Sales Price and Date
Indiana cares about the date because it starts the clock. You have 45 days from the date of purchase to title and register the vehicle before late fees start kicking in. Don't leave the price field blank. If the vehicle was a gift, you should still use a bill of sale but list the price as $0.00 and potentially include an Affidavit of Transfer to a Relative (Form 48507) if you're trying to avoid that 7% sales tax on a family hand-me-down.
Boats, Trailers, and the Weird Stuff
It’s not just cars. If you’re selling a bass boat to your cousin in Bloomington, you need a bill of sale for that too. Indiana requires registration for motorized watercraft and trailers over a certain weight.
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For boats, the bill of sale needs to include the Hull Identification Number (HIN). It’s basically a VIN for the water. If the boat has an outboard motor, some sellers list that separately just to be thorough, especially if it’s a high-value motor.
Trailers are a weird gray area for many. In Indiana, if the trailer is used on public roads, it needs a title. If you're selling a homemade trailer that’s never been registered, you'll actually need to have a police officer come out and perform a Physical Inspection of a Vehicle or Watercraft (Form 39530) before the BMV will even talk to you about a bill of sale.
The "As-Is" Reality
Unless you are a dealer, most private sales in Indiana are "as-is." This means once the money changes hands and the state of Indiana bill of sale is signed, the buyer owns every rattle, leak, and check-engine light.
However, as a seller, it's smart to actually write the words "Sold As-Is, No Warranty Expressed or Implied" directly on the bill of sale. It doesn't cost you anything to add that line, and it can save you a day in small claims court if the alternator dies two days after the sale. Indiana doesn't have a "Lemon Law" for private party used car sales. That protection is almost exclusively for new cars bought from dealerships.
Avoid These Common Mistakes
People get rushed. They meet in a gas station parking lot at 9:00 PM, scribble some names, and leave. That’s how you get burned.
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- Not checking the VIN: Physically look at the metal plate on the dashboard and compare it to the title. If they don't match, walk away. The bill of sale is worthless if the title is for a different car.
- Forgetting the "Seller's Report of Sale": After you sell the car, go to the myBMV website and report the sale. This officially unlinks your name from the vehicle's liability.
- Not keeping a copy: Always, always, always take a photo of the signed bill of sale with your phone before handing the original to the buyer.
- Ignoring Liens: If the seller still owes money to a bank, they don't actually have the title. A bill of sale is not a substitute for a clean title. If you buy a car with a lien, you're basically just paying off someone else's debt while they keep the legal ownership.
The Title is King
While the state of Indiana bill of sale is a vital supporting document, it is not the title. You cannot register a car in Indiana with only a bill of sale unless you are going through a very specific (and painful) "bonded title" process.
The seller must sign the actual title over to you. The bill of sale acts as the backup—the receipt that confirms the price paid and the date the deal went down. If the seller says "I lost the title, but I'll give you a bill of sale and you can just go get a new title," they are lying or uninformed. Only the last registered owner can apply for a duplicate title.
How to Handle a Gift or Low-Value Sale
If you're selling a car to a friend for $1, the BMV is going to raise an eyebrow. They know people do this to avoid taxes. If the sale price is significantly lower than the fair market value, be prepared to explain why. Maybe the engine is blown. Maybe the frame is rusted. In these cases, it’s helpful to attach a few photos or a mechanic’s estimate to the bill of sale to prove the low value.
Actionable Steps for a Clean Indiana Sale
To make sure your transaction sticks and you don't end up with a legal headache, follow this sequence.
- Download Form 44237: Go to the official Indiana BMV website and print the "Bill of Sale" form. It's one page and covers all the legal bases.
- Verify the ID: Ask to see the other person’s driver’s license. Make sure the name they are signing on the bill of sale matches the plastic in their wallet.
- Complete the Odometer Section: Do this while sitting in the car looking at the dash. Don't guess.
- Remove Your Plates: In Indiana, the license plate stays with the seller, not the car. Never let a buyer drive away with your plates.
- File the Report of Sale: Log into your myBMV account immediately after the sale and notify the state that you no longer own the vehicle. This is your "get out of jail free" card if the buyer gets a speeding camera ticket or hits a mailbox an hour later.
- Hand Over the Title: Ensure the title is signed in the correct places. No white-out. No scribbles. If you mess up the signature on an Indiana title, it's voided, and you'll have to order a duplicate.
By treating the state of Indiana bill of sale as a mandatory legal shield rather than an optional piece of paper, you protect your bank account and your peace of mind. Whether it's a $500 moped or a $50,000 RV, the rules are the same. Do the paperwork right the first time so you never have to think about that vehicle again.