Are you planning to sell your old car? Or, are you on the looks of buying a second-hand, decent quality car?
If you are planning to sell your car, you can do it in two ways. You can either sell it to a car buying service or sell it privately. Likewise, if you are looking to buy a used car, you can buy it from a service outlet or privately.
Selling a car privately has many upsides - one of them being, that you can set the price at whatever level you want to. Private selling gives complete autonomy over the selling process. In this article, we will discuss the car sale agreement in detail.
What Is a Car Sale Agreement?
A car sale agreement legalizes and finalizes the purchase of a car from the dealer to the buyer. Both parties are obligated, which means that the document needs to be attested by both the seller and the buyer.
A car sales agreement is also necessary in case you are selling or buying a used vehicle. The purpose is to declare that the car is no longer in possession of the previous owner (the seller) but is legally the property of the buyer.
It encloses specific clauses and conditions within it. The signing of the deal signifies that both the buyer and the seller have agreed to those clauses. Both parties, henceforth, are obligated to adhere to the mentioned conditions.
How Does a Car Sale Agreement Work?
The car sales agreement legally binding both parties. It puts forth all the essential terms of the sale. All parties shall agree the terms before the transaction is made. With containing the basic tenets of the car purchase, it should state the price, payment method, and the delivery date.
Other details such as time and place of delivery and the warranty period can also be included. For the agreement to be viable, essential documents and paperwork need to be taken care of. The background information or the history of the car needs to be established.
Necessary documents need to be gathered, and ownership rights should be presented. All these are important for drafting a valid and legal agreement.
What Are the Benefits of Having a Car Sale Agreement?
Several reasons can be attributed as to why it is vital to one when purchasing or selling a car.
A vehicle sale agreement is necessary in case any problem occurs. It will be of utmost significance if the car begins to show any dysfunctions or drawbacks after the purchase. Signing this document makes the seller be responsible for any damage or malfunction of the vehicle.
It is helpful to guarantee the condition of the car. Also, the buyer and the seller agree upon a mutual price, and then the deal is drawn. During the payment, any disagreement may occur, and the seller might claim a higher price, or the buyer may refuse to pay the agreed price.
Having a car sales agreement helps in transferring ownership and possession from the seller to the buyer.
What Are Included in a Car Sale Agreement?
To know in detail about the contents of the agreement, you can refer to any car sale agreement template. The agreement is divided into various sections. Each of the sections deals with a particular category of clauses.
- The Buyer And the Seller’s Identification
- The Details About the Vehicle
- The Seller's and Buyer's Obligations
- Mode of payment
- Governing Laws/Arbitrations
This is all that you need to know about drafting and signing a vehicle sale agreement. It has many advantages; most importantly, such an agreement ensures the proper purchase of the vehicle.
As a seller, you should draft an agreement very carefully and attentively. For a buyer, you should read the entire contract before signing it. All the clauses should be paid attention to so that one knows what one is committing to.
Furthermore, our official website has many car sale agreement samples and used car sales agreement templates available for download. Our website also has samples for other kinds of agreements. Visit CocoSign official website for more of such templates.