If you run a car dealership or you are personally selling your car, then it is important to draft a contract between you and the buyer. Proper documentation is needed to ensure a smooth process during the transaction. This will also help clear any future misunderstandings between both parties. So it is important that before signing the contract, you are aware of what the contents should be. To learn how to prepare this particular contract, let us discuss this further below. And if you need to start working on this document, check out our free car sale contract samples that are available for download on this page.
4+ Car Sale Contract Samples
1. Car Buyer’s or Seller’s Contract
2. Used Car Sale Agreement
3. Car Sales & Purchase Agreement
4. Second-hand Car Sales Contract
5. Private Car Sale Contract
What is a Car Sale Contract?
Buying a car can be an investment and also quite expensive. Something that cost so much should have proper documentation. One of which is a car sale contract or a bill of sale, a legal document that describes the terms, conditions, and other relevant information needed during a vehicle sale transaction. This will function as an agreement between both parties whether you pay in full or by installments. This is applicable whether you buy a brand new vehicle or a used one. It is important to have such a document as this will serve as proof that a transaction has been exchanged between buyer and seller.
How to Prepare a Car Sale Contract
It is critical that whenever you sell something as costly as a car, it should undergo a proper process. Just like when buying a house or a property, contracts or agreements are normally part of the process. Once a buyer decides to finalize the car purchase, the next step is to prepare a car sale contract. Each contract is different, but it normally contains the following details below.
1. Buyer’s and Seller’s Information
Since this is a contract pertaining to a sale of an item such as a vehicle, it is essential to include the buyer’s details. This would be the name, address, contact details, date of birth (to check if the buyer can legally buy the car) and sometimes the driver’s license is also checked.
And of course, the other party which is the seller must also include the same details, if buying from a car dealership then state the name of the company.
2. Vehicle Description
Another important section in the contract is to provide a description of the car, its model, brand, vehicle identification number and its color.
Provide the overall sales price of the vehicle, in which you can further break this down which includes different fees and the sales tax.
If the car is to be paid through installments, then details pertaining to this process should be written down in the contract. So what you need to include are the initial or the downpayment made; the amount financed which is the exact amount of money remaining on your purchase that you’ll have to pay. This includes the vehicle’s price, add-ons, fees, and taxes minus your down payment. Then the annual percentage rate which is the interest rate of the loan; the length of the installment and the amount to be paid per month.
5. Other Details
You can also include other essential details needed in the contract such as other terms and conditions that is relevant to the car sale, termination, and cancellation clause.
6. Double Check Before Signing
It is common to have mistakes in contracts, so before signing it is very important to go over the document to make sure all the details are correct and accurate.
Can a contract be modified?
A contract can be modified before and after both parties have signed. But for this to happen, both parties must mutually agree to the changes that are to be made.
What happens if a contract gets terminated or canceled?
Cancellation or termination would mean both parties are no longer bound to each other. Yet, to cancel a contract you need to check the terms and conditions that are attached. If one or both parties a liable for a breach, then there may be implications.
It pays to ask the dealership or refer to the other party if there are some details on the contract that may be hard for you to understand. What is important here is that a car sale contract is complete and accurate to avoid any future misunderstanding. To make it easier for you to prepare this document, download our free templates now!
FREE 10+ To Do Lists Samples in PDF
FREE 10+ Internship Contract Samples in PDF
FREE 10+ Landscaping Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Influencer Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Freelance Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Cleaning Contract Sampels in PDF
FREE 10+ Employee Contract Samples in PDF
FREE 10+ Nanny Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Event Planner Contract Samples in PDF
FREE 10+ Basic Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Graphic Design Contract Samples in MS Word | Google Docs | PDF
FREE 10+ Flooring Installation Contract Samples in PDF
FREE 10+ DJ Contract Samples in MS Word | Google Docs | Pages | PDF
FREE 10+ Packing List for Vacation Sample in PDF
FREE 10+ Photography Price List Samples in PDF