Selling private cars is a profitable business but the process of selling them can be quite risky. The two parties might come head to head with each other when problems arise within the negotiation period. That’s why it’s been established in the automobile business that there should be a contract between the seller and buyer to address issues before they materialize. If you’re planning on selling a car, this article can help you create a car sale contract.
9+ Car Selling Contract Samples
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3. Private Car Sale Contract
4. Private Used Car Sale Contract
5. Conditional Car Sales Contract
6. Dealer Consignment Vehicle Selling Contract
7. Used Car Invoice Sale Contract
8. Motor Vehicle Bill of Sale Contract
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10. Automobile Bill of Sale Contract
What is a Car Sale Contract?
A car sale contract or also called a private car sale agreement, or vehicle sale agreement, or auto sales contract is an agreement between a car dealer and a buyer for the sale of a vehicle. The contract also states the information of the vehicle the buyer is purchasing and the payment the buyer has to give. A contract is important in purchasing a car as it helps legalize the sale and regulates the agreement of both the buyer and seller.
How to Create a Car Sale Contract
In making a car sale agreement the following points below must be included in the contract:
1. Identify the Parties
The first sentence of the contract must put the buyer’s and seller’s full names and addresses. Also, include the reason for selling the vehicle.
2. Include the Sale Condition
The next sentence should be about the sale condition, you should put that you are the owner of the car for sale and the payment you received from the buyer. Also include details about the transfer of ownership for transparency.
3. Provide the Car Details and Its Condition
In describing your car, put the complete and specific information in the contract. In a paragraph, mention the maker, year, model, body type, vehicle identification number, mileage, engine number, and other distinguishable features. Note also the car’s exterior and interior conditions.
4. Outline The Terms of Sale
Indicate the date of sale, the sum of money agreed upon by both parties (whether full or deposit), and the method of payment that was agreed upon. Indicate also a warranty guarantee and outline the process of transferring the car’s title. Depending on your state’s regulations, you could either sign the title over to your buyer right away or notarize the title.
If both parties agreed to a payment plan and the buyer gave a down payment for the vehicle, you must provide a receipt to your buyer. To ensure yourself from fraudulent activities, you can hold onto your car’s title until the payment plan is complete.
5. Include a Disclosure Clause
A disclosure statement is a document given to the buyer in a transaction that explains terms and conditions. You have to assure the buyer that you informed him of any mechanical problems, defects, or damage that the vehicle might have or used to have.
6. Confirm All the Information Provided Are Accurate
Include a statement that says all the parties understand the implications of the contract. If there is any incorrect information written in the contract, it can be deemed null and void.
7. Sign The Contract
The buyer and seller must sign the contract to officialized the sale. At the bottom of the document, the “seller”, “buyer”, and “witness” (when necessary) must be indicated in the signature area. Include also the official date sale. Have the contract notarize to make the contract more secure.
Is a car purchase agreement legally binding?
A car sale contract is legally binding as long as it follows the guidelines required in the state where the sale is made. To make sure the contract is legal, the contract should show that: both parties had agreed to the same terms, and the signatures of both parties were not forged.
Can you back out of a car deal?
For the buyer, if he is not satisfied with the car or probably cannot afford it, he can still cancel the agreement by pleading his case. Once an agreement between a car dealer and a buyer has been made, it is assumed that the buyer will pursue purchasing the car. Make sure to provide a strong reason for backing out of a deal.
If the seller of the car dealer cancels the contract within 10 days or less after it has been signed, the buyer has no choice but to return the car and the seller should refund the buyer. However, if the seller tries to cancel the contract after 10 days, he can no longer do so.
What is the safest way to receive a payment when selling a car?
For many, paying cash is the safest form of payment since the risk of fraud is less compared to other payment methods.
Producing an agreement contract is easy as long as you are familiar with the vehicle you’re selling and the legal responsibilities that come along with it. Providing a contract in every sale you made can protect your business from shady activities and avoid legal complications that might come up. A contract can also help avoid miscommunication between you and your buyer since you can discuss beforehand the terms you could agree upon. If you need a contract template to help you start, click on the sample contracts on this article and download it for your reference. For other contracts, you want to make, click here.
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