Used cars are purchased and sold by private party individuals on a routine basis. Whenever you engage in a car sales transaction, you should issue a receipt that accurately evidences the terms of the sale. The issuance of a sales receipt benefits both the buyer and the seller of the used car. From the buyer's perspective, they have a written record of the transfer of ownership. From the seller's perspective, a receipt can be used to show the agreed-upon price (especially if the buyer has not paid in full), the specific model and year of the car and any terms of the agreement, such as that 'the car was sold as is.'
Acquire a medium for creating your receipt. Create a sales receipt with a simple sheet of paper and pen or create one on a personal computer that has a word processing application and print it out.
State the names of those involved in the sale, along with the date, at the top of the receipt. Designate and identify who the buyer and seller is by placing the caption "(buyer)" or "(seller)" after each party's name. Add a sentence that demonstrates the intent of the parties to engage in a sale, such as "the buyer agrees to sell the following vehicle(s) to seller:"
State the make, model, year and VIN (vehicle identification number) number of the car. You may wish to include additional information such as the colour and any distinguishing features of the vehicle.
State the agreed-upon total price for the vehicle. If the buyer has only paid a portion of the sale price upon the issuing of the receipt, state how much has been paid and when the remainder of the total is due.
State the condition of the car. This is where you may state any known defects that the vehicle has and whether the vehicle is being sold "as is" or with a warranty.
Provide a space at the bottom of the receipt for the signatures of both the buyer and seller of the used vehicle.
If you have questions or concerns regarding the enforceability of a contract or warranty provisions that are applicable in your state, you should consult a licensed attorney before completing a sale.
Tips and warnings
- If you have questions or concerns regarding the enforceability of a contract or warranty provisions that are applicable in your state, you should consult a licensed attorney before completing a sale.