Table of Contents
- 1 Elements of a car sale contract:
- 2 How do you write a car sale contract?
- 2.1 Determine the basic details:
- 2.2 Give details about your car:
- 2.3 Ensure to include only accurate information:
- 2.4 Indicate the purchase price and the date of the sale:
- 2.5 Method of delivery:
- 2.6 Explain your car’s condition:
- 2.7 Demonstrate the documents that you will give to the buyer:
- 2.8 Affix the signature:
- 3 Conclusion:
You need a car sale contract template when you plan to sell a car in order to keep yourself safe and out of any legal hassle. Selling a car requires a lengthy documentation process. This document includes the information of the seller, the buyer, and a car.
Elements of a car sale contract:
A car sale contract consists of following elements;
Buyer’s information:
This section includes the personal information of the buyer that includes;
- The buyer’s full name
- The buyer’s address
- The buyer’s date of birth
- The buyer’s Social Security Number
Pricing and sales information:
This part of a car sale contract contains car’s total price that you can subdivide into;
- Your car’s sales price
- The prices of each additional option
- Additional fees such as advertising fee, destination fee, documentation fee, registration fee, dealership fee, etc.
- The sales tax amount
Financing information:
As its name implies, it includes all of the relevant financing details. If your buyer purchase car through financing then this part is important. You should include the following details here;
- Total price of car including taxes and fee
- The down payment amount that is paid by the buyer
- The trade-in value
- The total amount that is paid via financing
- The loan’s interest rate
- The payment period’s length or term
- The monthly payment amounts
How do you write a car sale contract?
Follow the below steps in order to create an effective car sale contract;
Determine the basic details:
At first, you have to determine the complete names of parties, the buyer and yourself as the seller. You should also identify a statement that the document is for the sale of a car. Moreover, for verification purpose, it is important to attach the copies of the driver’s licenses of parties.
Give details about your car:
Mention the identifying features of your car such as;
- Year
- Exterior and interior color
- Body type
- Make and model
- Any unique features such as mechanical or cosmetic issues
- Odometer reading
- Vehicle Identification Number (VIN)
Ensure to include only accurate information:
Your car sale contract and payments get voided if you include any fraudulent claims about the car’s details or the terms of the sales. Therefore, you have to ensure that you and the buyer understand each other. Also, make sure that no one can misrepresent the car or the amount that you will exchange.
Indicate the purchase price and the date of the sale:
Your contract should be very clear. Clearly state that whether your purchase price includes the sales tax or you wants to add the sales tax is to the price.
Method of delivery:
If the selling car isn’t located at the place where you and the buyer meet then indicate the method of delivery in the contract. You have following number of delivery options;
- Shipping the car
- Delivering the car to the buyer yourself
- Buyer can pick-up the car
- Hire another person to deliver the car
Explain your car’s condition:
You should include a statement or line in your contract that state you are selling the car “as is.”
Demonstrate the documents that you will give to the buyer:
You should clearly demonstrate in the contract that you will give the buyer with the title of the car and other essential documentation such as maintenance records.
Affix the signature:
It is mandatory to affix the signature of both the buyer and the seller on the contract. Then, make copies of the contract, one can keep the original and the other keeps the copy.
Conclusion:
In conclusion, a car sale contract template is an important document to keep yourself safe and out of any legal hassle while selling your car. Your contract should be simple and clear. To make it valid, affix the signature of both the buyer and the seller.
