Selling 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.
- 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.
- 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.
- Include the type of payment that will be made (cash, cashiers check, money order, etc.).
- 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.
- 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.
- Each party should sign and date the contract. A witness should also sign the contract after each party has signed the contract.
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