How to Make a Contract for the Sale of a Car

If you've ever purchased a car from a dealer, you might recall signing a number of documents. The dealer drew these papers up as a way to protect himself in the event you should return with a complaint or disagreement over terms of the sale. When you sell a car you should do the same thing. Your document doesn't have to be pages long, but it should include details of the sale.

Instructions

1

Include the basics. State your name and address as well as the name and address of the buyer. Include the date and time. Including the time will protect you in the event the buyer takes the car for inspection after the sale and claims that he took it prior to signing the contract and that you made side deals with him orally.

2

Make it easy on the Department of Motor Vehicles (DMV). Clearly state the make, model, year and vehicle identification number. Also, include the mileage at the time of purchase.

3

Be honest about the price. Your contract should include the price that was actually paid for the car. A buyer will sometimes ask you to state a lower sales price so that his tax obligation is lower. As tempting as it might be to do so, it could hurt you in the longrun. If you're selling the car on a payment plan you will have no way to prove to a court how much the buyer actually agreed to pay if she stops paying. Even if you receive full payment for the car at the time of purchase, your credibility could come into question if the buyer later chooses to take you to small claims court for any reason.

4

Make a copy of the Bill of Sale and make sure that both parties sign each copy. Keep one for your records. The buyer will take his to the DMV along with title to the car to purchase tags.