A used car bill of sale is a legal and binding agreement between parties (a buyer and seller) that details the sale of a used car. It is important to include all applicable information, which will be described here, in order to protect both parties involved. Since the bill of sale is a binding agreement, any information included in the sale must be as accurate as possible. This used car bill of sale will be presented as proof of ownership, along with other documentation, when titling and registering a vehicle under a new name. In some states the purchase amount will be used to determine any sales tax that is due. If you’re considering buying used cars for sale by owner, then the information here will help you out.
Vehicle Bill of Sale Information
A vehicle bill of sale must include the following information, at a minimum. Be sure to check with the local Department of Motor Vehicles to make sure any additional information is needed.
Be sure to verify the accuracy of information, especially the VIN. Make sure all information is accurately transferred to the title. This will avoid problems when transferring the title and registering the vehicle.
A vehicle bill of sale can also include any information regarding the terms of a sale such as payment methods, condition of vehicle and terms of liability. Notarizing the bill of sale is typically unnecessary, but will add one more level of protection to both buyer and seller. Copies of the automobile bill of sale should be made for the buyer, seller and state.
Terms of Sale
Terms of sale can include any number of agreements made between the buyer and seller. Examples of terms include payment schedules or contingencies of sale. Contingencies could include a purchase based on the outcome of a mechanical inspection or repairs to be made by the seller.
Implied liabilities cover any unspoken or unwritten promises made to a buyer. When a private owner sells a vehicle they are usually not covered by a state’s laws of “implied liabilities” or “implied warranties” that most dealers must follow. That means that a buyer will be purchasing the used car “As-is.” However, a seller can be found liable if the buyer can prove negligence or misrepresentation on the part of the seller. A seller can avoid problems with implied liability, by including statements that describe major faults such as “this is a non-running car,” or “this vehicle does not meet state inspection criteria.” This will protect the seller, and act as disclosures for the perspective buyer. If there are questions about liability, contact the State Attorney General’s office.
Free Automobile Bill of Sale Forms
Several websites, like www.AutoCrisis.com, offer free used car bill of sale forms that can be downloaded or printed. Some state websites offer free downloadable forms. Be sure to check with state guidelines for bill of sale information, to avoid problems when transferring ownership and registering the vehicle.