What does a buyer/seller need when they are looking to buy or sell their car? When it comes under this kind of transaction, a vehicle purchase agreement is used to finalize the deal.

The parties need to provide their name, address, and contact details as well as all the details regarding the vehicle involved. This legally formed agreement shall provide every detail that needs to be addressed before transforming the ownership of the vehicle.

Furthermore, before creating your own vehicle purchase agreement, let’s understand this agreement in depth.

What Is a Vehicle Purchase Agreement?

When a buyer purchases a car, a car purchase agreement is used to document the details of the purchased vehicle from a seller. This agreement predetermines the terms and conditions of the sale agreed upon by the buyer and the seller.

The provisions of the basic logistics of the vehicle such as delivery details and the final price are also stated in this legal document. Usually, car purchase agreements are used to sell four-wheeled vehicles like vans and cars, boats, or motorcycles.

This shall further be useful to provide as proof of purchase of the vehicle as well as its condition at the time of purchase. The agreement shall be prepared as detailed or in general as per the parties' requirements.

However, pertinent information about the purchased vehicle like the warranty, and legal clauses of broader shall necessarily be included.

Why Need a Vehicle Purchase Agreement?

The seller of the vehicle and the buyer uses this agreement to come under a mutual agreement of the ownership transfer of the vehicle. The purchase agreement of a car shall be used as a proof of purchase of a car in a certain condition.

If in the case of any future argument, fraud, or chaos, this agreement will be presented as a legal document to get justice. It also helps to know the fixed prices, the buyer is liable to pay without any hidden cost.

Moreover, for the purchase of a used car, a used car purchase agreement shall be prepared. Most of the fraud happens in the used car sector, so the buyer shall necessarily prepare this agreement to safeguard his rights.

What Is Included in Vehicle Purchase Agreement?

To make a car purchase agreement completely apt, all the crucial information shall be included in it. Here is a list of those terms:

  • Payment: The total purchase prices the buyer shall pay is stated in this term with the utmost description. It is broken into the down payment, payment at the time of delivery of the vehicle, and mode of payment. Also, any free goodies shall be mentioned.
  • Vehicle Description: Stating with the name of the person whom the vehicle is being sold to all the details of the vehicle like model number, color, mileage, VIN, year of manufacturing, and others shall be mentioned.
  • Terms and Conditions: Both the parties mutually agreed terms are mentioned related to the condition of the vehicle, necessary transfer of title and registration to the buyer, and more.
  • Warranty: The start and end date of the warranty or the number of years from the purchase date shall be written if any.
  • Odometer: To the best of seller knowledge the odometer reads accurate miles and has not been hamper under any condition.
  • Buyer’s Insurance and Tags: All the insurance, license, plates, coverage, tags or registration shall become the buyer’s responsibility upon delivering the purchased vehicle.
  • Severability: In case any provision in the agreement is found to be void or invalid, that clause shall be severed from the agreement without affecting the remainder. All remaining provisions shall then continue as it is.
  • Modification: The agreement could be modified, voided, or superseded only upon written and signed agreement of both the parties.
  • Acceptance: The consent of the seller who agreed-upon selling the vehicle and the buyer who agreed upon buying it needs to be finalized after signing the agreement.
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It is crucial to have a written witness document at the time of purchase of the vehicle to avoid future misunderstanding or mayhem.

However, vehicle purchase agreements are mostly subject to both federal and state law. So, the parties need to verify that all the terms and conditions states are as per the law before signing the agreement.

If you would like to have your own version of agreement, you could create a free printable vehicle purchase agreement on CocoSign. We have an expert team to provide these templates as relevant and under the latest government guidelines.


CocoSign represents a wide collection of legal templates covering all types of leases, contracts and agreements for personal and commercial use. All legal templates available on CocoSign shall not be considered as attorney-client advice. Meanwhile, CocoSign shall not be responsible for the examination or evaluation of reviews, recommendations, services, etc. posted by parties other than CocoSign itself on its platform.