How to write a car sale agreement

Create a contract and bill of sale to protect yourself when selling a used car. Always include vehicle information, VIN and odometer readings.

When you buy or sell a car privately, one of the most important documents to fill out correctly is the contract of sale or bill of sale. You will not be able to transfer ownership of a vehicle without a bill of sale.

Some states require you to complete a state-specific bill of sale when buying or selling a vehicle. You will need to obtain a state-specific bill of sale if you live in:

If you live in a state that does not require a specific state-issued bill of sale, you can follow the instructions for making a good bill of sale. If any details are missing from the bill of sale, this can lead to delays in the transfer of ownership to the new owner.

Part 1 of 4: Enter complete vehicle information

Your bill of sale must contain complete and detailed information about the vehicle involved in the transaction.

Step 1. Specify the make, model and year of the car involved in the transaction.. Be specific and include model details such as trim line if applicable.

For example, if you have an "SE" model or a "Limited" trim line, include that in the model information.

Step 2: Write down your VIN. Write the full 17 digit VIN number on the sales receipt.

Write the VIN number legibly, making sure that the characters cannot be mixed up.

• Attention: The VIN number can be seen on the dashboard on the driver's side, on the door, on insurance records, on the vehicle's passport, or on the vehicle's registration card.

Step 3: Include a physical description of the vehicle.. Write if it's a hatchback, coupe, sedan, SUV, pickup truck, motorcycle or something else.

Also indicate the exact color of the vehicle in the bill of sale. For example, instead of just "silver", some manufacturers will list "alabaster silver".

Step 4: Turn on the odometer. Include an accurate odometer reading at the time of sale.

Step 5: Fill in the license plate or identification number. The license plate can be found on the original vehicle registration and seller's title.

Part 2 of 4: Include Seller Information

Step 1: Write the seller's full name on the bill of sale. Use the legal name that the DMV will have on the record.

Step 2: Write the seller's address. Write the full physical address where the seller lives.

Note the city and state along with the zip code.

Step 3. Enter the seller's phone number.. This is not normally required, but it is useful to have it in case there is a need to contact in the future, for example, in case of inconsistency in the information about the seller.

Step 1: Write the buyer's full name on the bill of sale.. Again, use the legal name that the DMV will have on the entry.

Step 2: Write buyer's address. Record the buyer's full physical address, including city, state, and zip code.

Step 3. Enter the buyer's phone number.. Include the buyer's phone number to protect the seller, for example, if the payment does not go through at the bank.

Part 4 of 4: Fill out transaction details

Step 1: Specify the selling price. Enter the amount of money agreed to be sold.

Step 2: Specify if the car is a gift. If the vehicle is a gift, enter "GIFT" as the amount of the sale and describe in detail the relationship between the giver and the recipient.

• AttentionA: In some respects, depending on the state, there may be a tax credit or exemption from paying for a car donated between family members.

Step 3: Write any terms of sale in the bill of sale. The terms of sale must be very clear between buyer and seller.

If the sale is subject to a vehicle history report or if the buyer has received financing, indicate this on the bill of sale.

If you are a buyer and want to make sure that the car is in good condition, you can always call a certified AvtoTachki specialist to inspect the car before buying.

Step 4: Sign and Date. The seller must sign the bill of sale and put on it the date of the final sale.

Step 5: Make a Duplicate. Write two copies of the bill of sale - one for the buyer and one for the seller.

In both cases, the seller must sign the bill of sale.

If you are selling your car privately, make sure you are protected by a bill of sale. While some states have a state-specific bill of sale that you must use, there may be a properly documented vehicle purchase agreement between the buyer and seller. If you are making a private sale in the near future, follow these steps to finalize the bill of sale before transferring ownership to the new owner.