How to Write a Contract for Selling a Car

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Pin ItArticle EditDiscussSelling a used car to a private buyer is often more economical than trading in the car to a car dealership, but with a higher sale price comes the responsibility to do your own paperwork. Fortunately, the contract for the sale of a used car, often called a Bill of Sale, is a relatively simple document to create on your own.

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Sample Used Car Sale Contract

Sample Bill of Sale Disclosure Addendum

Writing a Contract1Identify the parties and the reason for the contract. The first sentence of the contract should identify the full legal names of both the buyer and the seller and state that the contract is for the sale of a car. For example, “This is a contract made between the Seller, Joe Smith, and the buyer, Dan Jones, for the sale of Joe Smith’s 1995 Honda Civic.” is sufficient language to identify the parties.

2Provide a description of the vehicle. The contract should be written such that it is clear to all who read it exactly what the contract is for. In the case of the sale of a car, use as many identifying characteristics of the car as possible. For example, if the contract only identifies the model and year of the car, for example, “1990 Toyota Camry,” and the owner has two 1990 Toyota Camry’s, it would be unclear which of the two cars the contract is for.

Include the VIN number, color, year, make, model, interior color, and any other unique features of the car. For example, “The vehicle is a silver 1995 Honda Civic LX with black leather interior and a sunroof. The VIN number is 123456789 and the odometer reads 167,000 as of March 14, 2011.”3State the date of the sale and the purchase price. Include the type of payment that will be made (cash, cashiers check, money order, etc.). For example, “The date of sale is March 14, 2011. Buyer agrees to pay to Seller the purchase price of $500 to be paid in cash only.”

4Include a statement about the condition of the vehicle. Typically, in the sale of a used car, the vehicle is sold “as is,” which limits the seller’s liability for any problems with the car’s condition. A statement that the car is sold “as is” and that the owner “makes no warranties about the condition of the car” is sufficient.

5Explain what document the Seller will provide to the Buyer. State that the Seller will provide the Buyer with the vehicle’s title and any other required documents, such as a recent smog test report, or other inspection. Check with your state’s DMV regarding any other documentation the seller must provide to the buyer.

6Sign and date the contract. Each party should sign and date the contract. A witness should also sign the contract after each party has signed the contract. After the contract is signed, make a copy of the contract. One party should retain the original and one party should retain a copy. It does not matter who retains the copy versus the original.

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Edit TipsThe contract can either be handwritten or typed. Sample contracts can be downloaded from the internet, but be careful to review the contract before you intend to use it since the form may not contain all the information you need to include.

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Categories: Featured Articles | Contracts and Legal Agreements

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