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What is a Car Purchase Agreement?

A car purchase agreement is a legally binding document between two parties (buyer and seller) regarding the purchase of a vehicle. It outlines information about the subject of the deal, payment, warranties, representations, insurance, indemnification, and terms and conditions. This free car purchase agreement template can be used for all types of vehicle purchases.

Car Purchase Agreement Template

Prepared for:
​[Client.FirstName][Client.LastName]
​[Client.Company]​

Created by:
​[Sender.FirstName][Sender.LastName]
[Sender.Company]​

Why Use the Car Purchase Agreement Template

  • A purchase agreement template for a car lets you create a legally binding contract between a buyer and seller.

You can use this contract template for proof of ownership when re-registering a vehicle. It’s important to know how to fill out this document. You can refer to a sample car purchase agreement below.

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How to Write a Car Purchase Agreement

Study each section before signing the document, as changes can only be made in pre-specified cases. When filling in your car purchase/sale contract template, you need to insert the following information:

At PandaDoc, you can access a free car purchase agreement form template to prove your ownership of the vehicle. Complete and sign it online or download your car purchase agreement sample in PDF to get a printable document in no time.

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  • You can provide all relevant transaction information for a specific vehicle. It’s essential to consider and complete this form in advance.

  • A properly drafted car payment contract between two parties provides a sense of security and protection when finalizing the deal.

    • Payment information, including method, prices, and fees

    • Vehicle description and specifications (mileage, year, color, VIN, etc.)

    • Terms and conditions

    • Buyer’s representation, insurance, and tags

    • Full consent

    • Possible conditions of changes

    • State jurisdiction

    • The final section with the signatures of both parties.

    FAQ

    • If the seller wants to sell the car and the buyer wants to buy and register it for themselves, they need to take care of drawing up a document of sale. This document is a legal agreement between the parties, which sets out all the important details about the transaction. Once the document template has been properly drafted and confirmed with signatures, the buyer acquires ownership of the vehicle. In addition, without such a certified document of sale, the parties will not be able to change the registration to the new owner.

    • You can draw up your contract using the PandaDoc free car sales agreement template. Review the sections, including the one on payment. This section describes the specifics of payment, so it is important to prepare all the necessary data. The parties agree on what the amounts will be at each stage and set the payment directly upon receipt of the subject of the deal.

    • To write a car sale contract, the vehicle seller and buyer must agree on the details and formalize them in a document. The contract should outline information such as payment, conditions, warranties, compensation, changes, and other details in a specific order. Both parties must sign the contract to confirm their agreement. With PandaDoc, you can easily obtain a free printable vehicle purchase agreement, sign it electronically, and share it online.

    • Yes, a vehicle purchase agreement is a legally binding document that attests to a transfer in ownership from the seller to the buyer. Hence, it’s always beneficial to include important state details concerning payment, warranties, insurance, remedies, and terms and conditions to avoid any misunderstandings at a later date.

    • Types of purchase agreements differ in terms of involved parties and the nature of the deal. Here are the aspects you need to take into account when choosing a template for such an agreement:

      • The sale of a car between two individuals is characterized by each party stating their passport data because they are acting on their own behalf. 

      • If one of the parties is a legal entity, then the details of the head of the entity are indicated, as well as his position and on the basis of what document he works. 

      • If the two parties are legal persons, then both of them specify the details of the head. In the end, the document is sealed. 

      • The car payment agreement between the two parties is in the same format but printed in triplicate. The first stays with the seller, the second with the buyer, and the third with the State Automobile Inspectorate.

    Disclaimer

    Materials (e.g. templates, educational articles, blog posts and informational content), made available through PandaDoc, including via any integrations, connectors, extensions, plugins, or third-party AI platforms (e.g. ChatGPT, Claude, or similar tools) are for general information purposes only and are provided "as is." These materials do not constitute legal, regulatory, or compliance advice and should not be construed as such. It is your responsibility to ensure materials meet your specific legal requirements. Consult a qualified attorney licensed in your jurisdiction before relying on these materials. PandaDoc disclaims all warranties, express or implied, including fitness for a particular purpose or non-infringement.

    This car purchase agreement has been entered into as of [Agreement.Date] between [Sender.FirstName] [Sender.LastName] (Seller) and [Client.FirstName][Client.LastName] (Buyer).

    Payment

    The total purchase price to be paid by Buyer to Seller for the vehicle listed is inclusive of all down payments made by Buyer. Total purchase price is broken down as follows:

    1. Down-payment: $[DownPayment.Amount] (Due to Seller on or before execution of this agreement.)

    2. Payment Due at Delivery of Vehicle to Buyer: $[RemainingBalance.Amount]

    3. Payments can be made via cash, money order, or with prior approval check made out to seller.

    Provide your clients with all pricing and fees relevant to this agreement. Using the table provided below in this template you can be sure all pricing is included.

    NamePriceQtySubtotal
     
    LabelAmount
    Subtotal$0.00
    Discount$0.00
    Tax$0.00
    Total$0.00

    Vehicle Description

    By using this table, you can ensure all car specifics in the agreement are understood and acknowledged by both parties. Customize fields to include a full description of your vehicle.

    The vehicle being sold is as follows:

    • Make:

    • Model:

    • Body Type:

    • Body Color:

    • Year:

    • Mileage:

    • Vehicle Identification Number (“VIN”):

    B. [Keys.Amount] keys for vehicle.

    C. Vehicle Title clean of all liens and holds.

    D. Other

    Terms and Conditions

    This section has been prefilled to include all necessary terms and conditions relevant to the selling of your vehicle. You can add additional terms and conditions if they are not mentioned in this template.

    Seller desires to sell the vehicle described above, Buyer accepts the above mentioned vehicle and agrees to price and delivery of the “Acquired Vehicle”, under the terms and conditions set forth below; Buyer shall take possession of same, as agreed between both parties on or before (Delivery Date”). If delivery is to be made at a date after the execution of this contract, acquired vehicle will be delivered in the same condition as inspection condition.Seller is responsible for the execution all documents presented by Buyer which are necessary to transfer title and registration to buyer.

    Warranty

    The warranty section serves as protection against certain unforeseen circumstances that can occur during vehicle purchases. Additional lines can be added to this section to fit your individual needs.

    Warranties. This vehicle is sold “AS IS”, and Seller does not in any way, expressly or implied, give any warranties to Buyer.

    Odometer

    • Odometer Declaration. Seller agrees that the odometer in the Acquired Vehicle now reads miles and to the best of Seller’s knowledge it reflects the actual mileage of the vehicle described herein.

    Buyer Representation

    Buyer Representation. Buyer may have an individual represent themselves for signing of this agreement as long as said individual provides to Seller that he or she has the power and authority to do so on behalf of Buyer.

    Buyer’s Insurance & Tags

    Buyer acknowledges that unless prohibited by applicable law, any insurance coverage, license, tags, plates or registration maintained by Seller on the Acquired Vehicle shall be canceled upon delivery of the Acquired Vehicle to, and the acceptance of, by Buyer.

    Continuation of Warranties

    All representations and warranties contained in this Agreement (if any) shall continue in full force and effect after execution of this agreement. If either party later learns that a warranty or representation that it made is untrue, it is under a duty to promptly disclose this information to the other party in writing. No representation or warranty contained herein shall be deemed to have been waived or impaired by any investigation made by or knowledge of the other party to this Agreement.

    Indemnification

    Indemnification of Attorneys Fees and out-of-pocket costs. Should any party materially breach this agreement (including representations and warranties made to the other side), the non-breaching party shall be indemnified by the breaching party for its reasonable attorneys fees and out-of-pocket costs which in any way relate to, or were precipitated by, the breach of this contract (including the breach of representations or warranties). This provision shall not limit in any way the remedies either party may have otherwise possessed in law or equity relative to a breach of this contract. The term “out- of-pocket costs”, as used in this contract, shall not include lost profits.

    The car payment agreement between two parties needs to specify what happens if someone violates the terms of the contract. Then the other party, whether it is the buyer or the seller, must be compensated.

    Entire Agreement

    This Agreement, including the attachments mentioned in the body as incorporated by reference, sets forth the entire agreement between the Parties with regard to the subject matter hereof. All prior agreements, representations and warranties, express or implied, oral or written, with respect to the subject matter hereof, are hereby superseded by this agreement.

    Severability

    In the event any provision of this Agreement is deemed to be void, invalid, or unenforceable, that provision shall be severed from the remainder of this Agreement so as not to cause the invalidity or unenforceability of the remainder of this Agreement. All remaining provisions of this Agreement shall then continue in full force and effect. If any provision shall be deemed invalid due to its scope or breadth, such provision shall be deemed valid to the extent of the scope and breadth permitted by law.

    Modification

    Except as otherwise provided in this document, this agreement may be modified, superseded, or voided only upon the written and signed agreement of the Parties. Further, the physical destruction or loss of this document shall not be construed as a modification or termination of the agreement contained herein.

    Acknowledgments

    Each party acknowledges that he or she has had an adequate opportunity to read and study this Agreement, to consider it, to consult with attorneys if he or she has so desired.

    Exclusive Jurisdiction

    The Parties, by entering into this agreement, submit to jurisdiction in [Transaction.State] for adjudication of any disputes and/or claims between the parties under this agreement. Furthermore, the parties hereby agree that the courts of [Transaction.State] shall have exclusive jurisdiction over any disputes between the parties relative to this agreement, whether said disputes sound in contract, tort, or other areas of the law. This Agreement shall be interpreted under, and governed by, the laws of the state of [Transaction.State].

    Acceptance

    This signature section of the car buying template allows not only the e-signature of both parties but also allows you to track and view it at any time from any device. Upon completion, this confirmation makes the contract legally binding, and both parties are responsible for adhering to the agreed terms.

    Both signing parties acknowledge the acceptance and agreement of all terms conditions and deliverables. Seller and Buyer affix their signatures as follows.

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    Car Purchase Agreement Template

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    This car purchase agreement template is a standard agreement made completely customizable for your individual needs. All fields and tokens in this agreement can be changed and customized based on each individual agreement.

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