• 3 Facts About Used Auto Contracts

    Used auto contracts are particularly handy when buying a used car from a private party. In buying used cars from a private party, if you do not have a contract, the price you pay in the end might leave you with more than a ‘lemon’ in your wallet. There are many options online to draft your own used car contract with appropriate terms and conditions. Many of these used car contract templates are affordable and very user-friendly. Before considering utilizing an online template, it is important to understand a few facts about the contract terms and conditions.

    1. Warranty

    In selecting the ‘No Warranty” provision of a contract, this releases the seller from any obligations – meaning the car is sold “as-is”. If something goes wrong with the car after the sale, the seller is released from any responsibility, and the buyer cannot return the vehicle to the seller.

    Under the “Limited Warranty” provision, the seller agrees to allow the buyer to bring the car back after the discovery of a problem.

    2. Defects Disclosure

    Listing out the current defects of the vehicle on the used auto contract at the time of the sale prevents the buyer from later claiming these defects were intentionally concealed.

    3. Seller’s Authority

    This provision essentially states that the seller is the owner and has the proper authority to sell it. Without this, the seller could back out of the contract claiming they did not have proper authority to sell the vehicle. Familiarizing yourself with terms and conditions of a used car contract can benefit you in the end by protecting your purchase and ensuring you receive what you pay for.