If you are buying or selling a vehicle via a private party sale, a Bill of Sale or Payment Agreement will have to be executed by all parties gaining and transferring interest in the vehicle. A payment agreement for a private auto sale will differ to a degree from state to state, depending on the laws in the state where the vehicle is going to be registered and driven.
Begin the agreement by printing the date, place of sale, and the names of each party. The seller's full name should appear followed by, "Hereinafter known as the Seller", followed by the buyer's full name with, "Hereinafter known as the Buyer" and, "Each party will be collectively be known hereinafter as the Parties". List the seller and buyer's addresses in this section as well.
List the vehicle description and condition. This list will include but is not limited to, the VIN number or Vehicle Identification Number, the make, model, trim level, year, and mileage. Any existing body damage, interior damage, or mechanical problems should also be listed here.
Describe the terms of the transaction. These terms should include the agreed upon sales price, the number of instalment payments, the payment frequency--weekly, bi-weekly, monthly--and any down payment or trade amount.
The seller, as a lien holder, should keep the car's title in his possession until the vehicle has been paid in full.
The seller should transfer or terminate their auto insurance of the vehicle being sold immediately.
Tips and warnings
- The seller, as a lien holder, should keep the car's title in his possession until the vehicle has been paid in full.
- The seller should transfer or terminate their auto insurance of the vehicle being sold immediately.