100% Free Car Sale Contract Templates (Word)

private car sale contract template

A car sale contract template is an important document that comes in handy when you are selling your car to someone especially to a stranger. This contract keeps you safe and out of any legal hassle. As a seller, it is your responsibility to create your own car sales contract.

What to include in a car sale contract?

Include the information about yourself as the seller, the buyer, and your car as well as the car’s price and the payment method in your car sale contract. Moreover, it consists of the following parts;

Buyer’s information:

In this section, you have to include the personal information about the buyer. This information is also in their driver’s license. The details you have to include about the buyer are;

  • Full name
  • Address
  • Date of birth
  • Social Security Number

Pricing and sales information:

The car’s total sales price is included in this section and you will break down it into following;

  • Sales price of car
  • The prices of additional option
  • Other additional fees like advertising fee, destination fee, documentation fee, registration fee, and dealership fee
  • The sales tax amount

Financing information:

This section demonstrates all of the relevant financing details. Include the following information here;

  • Total price of your car including taxes and fees
  • The down payment amount the buyer has to paid
  • The trade-in value
  • Through financing, the total amount to pay
  • The loan’s interest rate
  • The payment period’s length or term
  • The monthly payment amounts

How do you write a car sales contract?

Let us discuss step-by-step on how to write a car sales contract;

Determine the basic details:

At first, you have to determine the full name of both parties i.e. the buyer and yourself as the seller as well as the addresses of both parties. Then, include a statement that the document is for the sale of a car. For verification purpose, it’s better to attach copies of the driver’s licenses of both parties.

Details about your car:

Include the following identifying features of your car;

  • Year
  • Color (exterior and interior)
  • Body type
  • Make and model
  • Any unique factors such as mechanical or cosmetic issues
  • Odometer reading
  • Vehicle Identification Number (VIN)

Make sure to include only correct information:

Don’t add fraudulent claims about the car’s details or the terms of the sales. This is because this can lead to your car sale contract with payments getting voided. You have to ensure that you and the buyer understand each other. None of you can misrepresent the car or the funds that you will exchange.

Mention the purchase price and the date of the sale:

Your contract should be very clear. It clearly states that whether or not the purchase price includes the sales taxes. However, in some states, you have to charge sales taxes when you sell your car. You should mention that your purchase price includes the sales tax in the document. Before creating the contract, you should decide on whether you will add the sales tax to the price or not.

Specify the method of delivery:

The place where you and your buyer reside if the car you are selling isn’t located there then specify the method of delivery and responsibility in your contract. In such situation, you have a number of delivery options;

  • Shipping the car
  • You can deliver the car to the buyer on your own
  • Buyer can pick-up the car
  • Involve a third-party to deliver a car

In addition, it is also important to indicate who will take responsibility for the delivery costs in your contract. The shipping of the car, return flight tickets or car rental for owner delivery involves expenses, also mention them.

Demonstrate your car’s condition:

You should sell your car ‘as is’ in most cases. This is because, in terms for any issues in terms of your car’s condition, this limits your liability. In your contract, include a statement or line that states you’re selling the car “as is.” It means you are making no warranties about the car’s condition.

Describe the documents that you will give to the buyer:

The contract should specify that you will provide the buyer with;

  • The title of the car
  • Latest emissions test report
  • Service or maintenance records

You should also get in touch with the DMV office of your state in order to provide any other documents to the buyer.

Explain the status of your car’s title:

If your car has a clean title then you can sell it. This means, for loans or other legal actions against you, there aren’t any liens on the title. However, in some cases like when the bank still holds the title, you can sell your car. But you have to assure that your buyer knows this.

Sign the contract and write the date:

In the end, you and your buyer have to sign the document. Make copies of this document after signing. One of you keeps the original and other keeps the copy of the contract. Furthermore, in the presence of a notary, you can also sign your contract. This adds an extra layer of protection because the notary gives solid proof that both parties are agreed to the terms. You should also check Pinewood Derby Car Design Templates.

Important things to consider before signing the car sale agreement:

Here are the things that you must consider before signing the agreement;

Provide your correct information

Make sure that the information you provide as a buyer is accurate.

Any extra fees that you haven’t known before

Business services always add unscrupulous and questionable fees to enhance their profits. You as a buyer have to review all the tabulated fees meticulously and if you don’t understand such fees then ask questions about it. Moreover, there is no need to sign the contract in case an unsatisfactory explanation of the fees inclusion is offered.

Any charges on things that you have agreed on as free

Generally, dealerships give the buyer free items or services for an incentive. You should ensure that to create a list of all these offerings and be sure that they all are mentioned in the purchase agreement. These free things must have a zero amount in the agreement.

Extras that you didn’t ask for

In order to ensure that all these requested items are present, you should scan through added options. Underline the items that you did not request to purchase and remove its amount to the total. Bring your business to another dealership in case you feel that the error committed was deliberate.

On your financing, the interest rate

Offering great interest rates on financing is another incentive for the buyer in purchasing vehicles. You have to ensure that this offer is mentioned in the agreement. If the agreed amount isn’t specified in the agreement then before signing the contract, question about it and have it changed.

The value of your trade-in

The trade-in value of the vehicle mentioned in the agreement should be the same as made by the salesperson. Go through the sales contract in case of any apprehensions regarding what you agreed upon. In case, the dealership is engaged in some undesirable practices then the buyer has no obligation to sign the agreement.

What is the best time to sell your car?

When every part of your car is functioning properly and there aren’t any service due lights on your dashboard then this is the best time to sell your car and make a car sale contract. In case, the car is not in good shape then you would want a reduction in the price. This type of deductions makes up for the cost of required repairs and maintenance. You should make sure that your car works well in case you want a good price for it.


In conclusion, a car sale contract template is a legal document that protects both the seller and the buyer from future disputes. This contract contains all the essential information about the buyer, the seller, and the car. You have to keep this document clear and clear.

FAQS (Frequently Asked Questions)

What is the most important paperwork for privately selling a car?

You require a V5C while selling your car privately or to a dealership.

When should you use a car sale agreement?

You should use this agreement in the following situations;

1- When you own a car that you want to sell
2- If you want to make sure that the sale is a legally binding contract
3- In order to make a complete and final ‘sold as seen’ agreement

Why do you require a car sale agreement?

A car sale agreement is a very useful document for both the seller and the buyer because it contains a written record of the transaction and acts as the evidence of the purchase.

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