What type of receipt must be provided after a vehicle sale?

The correct response is that a bill of sale must be provided after a vehicle sale because it serves as a formal legal document that outlines the specifics of the transaction. This includes essential details such as the names and addresses of both the buyer and seller, the vehicle identification number (VIN), the sale date, the purchase price, and any terms related to the sale, such as whether the vehicle is sold "as-is" or comes with a warranty.

A bill of sale is critical because it provides proof of ownership transfer, which is necessary for both parties if there are disputes about the transaction or for future registration purposes. It also helps establish the legal rights of the buyer in case they need to prove ownership later on.

In contrast, while a receipt for the buyer's down payment may be useful for tracking payments, it does not capture the comprehensive details of the vehicle transaction. An informal note might not hold up in legal situations, as it lacks the formal characteristics of a bill of sale. A warranty document pertains specifically to the guarantees regarding the vehicle's condition and does not serve as evidence of ownership transfer. Thus, the requirement for a bill of sale underscores the importance of having a legally binding record of the vehicle sale.