Selling a vehicle can turn out to be very easy to do and profitable, but there is a contract to sell a car that must be completed. This paperwork involves writing about the car being sold and the parties participating in this transaction.
The first thing that you must do is find the contract requirements for the state that you live in. You have to know that each state in the U.S. has laws concerning selling a car. In order to carry out a legal transaction, you’ll have to follow these laws. In some situations, it will be necessary to complete specific forms for a particular detail.
After finding out about what must be written in the contract, you’ll have to create or print it. This contract is also known as a “Bill of Sale” or “Notice of Sale”. It can be either downloaded or written on a piece of paper. On the Internet you’ll find several websites that provide these forms free of charge. You can either download these and make a few copies or duplicate your written contract.
Next, obtain all the necessary information that you will need in order to fill out the contract. You must include the make and model of the car that you want to sell, year of manufacturing, vehicle identification number (VIN), odometer reading and the selling price. You are allowed to add other details concerning the car, like warranties, defects, color, engine number, plate number, along with other details, some which can be mandatory depending on the state you live in.
You should include a section in the contract that mentions your responsibilities as a seller. To give you an example, you could write that on the date when you sell the car, you promise to give the car’s title, odometer and registration disclosure statement. Taking into consideration the fact that you will be selling a used car, you might want to mention that it has passed a smog inspection recently.
If the car you sell has no warranty left or it is not transferable to the new owner, you will have to state the fact that the car is sold in a “as is” condition. It is very important when selling a car to write in the contract the vehicle’s condition.
You will have to disclose the acceptable ways of payment. Here, you will write about what methods of payment you accept for the transaction. To give you an example about what you can write: “On the date of the transaction, the car seller will accept only a money order or cash from the buyer.”
Now you will have to complete the buyer and seller sections of the document, writing down the names and full addresses of both parties who are involved in this transaction. Don’t forget to leave room for you and the buyer to sign. If the contract that you have drawn has more than one page, you and the buyer will have to sign each pages and mention the date on all of them. In the situations in which notary stamps or witnesses are mandatory, don’t forget leave the necessary room. Once the paperwork is done, give one copy to the buyer and keep one for yourself.
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