Car sale contracts allow buyers and sellers of automobiles or other vehicles to protect themselves from future misunderstandings by documenting the transaction in writing.
What is a Car Sale Contract?
It is a document also called an auto bill of sale form that transfers the seller’s title of a vehicle to a buyer as long as there are no liens on the vehicle. Any type of vehicle bill of sale can be used by anyone selling a car, van, truck, trailer or motorcycle to a buyer. A vehicle bill of sale protects both the seller’s and the buyer’s rights and can also prove the seller actually owns the vehicle.
In most states a seller will also have to sign over the certificate of title or pink slip to the buyer in order to complete the sale and the buyer may also need a bill of sale in order to get a new certificate of title.
The seller must also supply the buyer of a vehicle with an odometer disclosure statement documenting the accuracy of the vehicle’s mileage guaranteed by the seller.
What Types of Car Sale Contracts Are Available?
- Auto Bill of Sale: Used by anyone selling a vehicle usually with warranty and proof of seller’s ownership to the title to or from another person and is generally used together with an odometer disclosure statement form.
- Auto As Is Bill of Sale: Used by anyone selling a vehicle as is without any type of expressed or implied warranty to or from another person and is generally used together with an odometer disclosure statement form.
- Vehicle Bill of Sale and Promissory Note: Used by anyone selling a vehicle as is or with warranty to or from another person with installment payments and is generally used together with an odometer disclosure statement form. A promissory note for the purchase of the vehicle should be included to establish the buyer’s obligation to make payments until the vehicle is paid off according to the terms set forth in the car sale contract.
What Could Happen if I Don’t Have a Car Sale Contract?
The details of an oral agreement in the transaction of a vehicle can be forgotten or misinterpreted by either the buyer or seller and could lead to the risk of a lawsuit if there are any disputes. Car bill of sale contracts allow you to put your agreements in writing to clear up any future misunderstandings before having to go to court to settle a disagreement.
A buyer may decide he does not want the vehicle for any number of reasons and want his money back. Car sale contracts are the strongest legal defense against someone feeling buyer’s remorse.
Without a vehicle bill of sale form, a buyer could later make a claim that contradicts what was agreed upon at the time of the transaction, then it’s just your word against his.
Car Sale Contracts
Automobile bill of sale and odometer disclosure form used to buy or sell a car, van, truck. trailer or motorcycle in any state.
600 Legal Forms and Business Forms Kit
Assorted collection of 600 fill in the blank business forms and legal forms.
