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Prepared for

​[Client.FirstName][Client.LastName]​

Prepared by:

​[Sender.FirstName][Sender.LastName]​

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Car Sale Agreement Template

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Use our private car sale contract template to create a legally binding contract between the buyer and seller of a vehicle. Our free sample car sale agreement outlines the responsibilities of both parties, payment terms and condition of vehicle transfer. The template already contains all of the required information and can be customized to meet your needs.

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This Car (Used Car) Sale Agreement (the “Agreement”) sets out the terms and conditions upon which [Sender.FirstName][Sender.LastName] (the “Seller”) shall effect the sale of the Vehicle to [Client.FirstName][Client.LastName] (the “Buyer”), under the terms set out below.

WHEREAS: The Seller is the current registered owner of the Vehicle.

WHEREAS: The Seller is willing to sell the Vehicle to the Buyer on the terms that are set out in this Agreement and the Buyer for his part is willing to purchase the Vehicle from the Seller on said terms.

1. Definitions

1.1 “Vehicle” and “Car” shall both mean the vehicle that is to be sold as set out in Clause 9.

1.2 “Parties” refers to the Buyer and Seller who have been named in this Contract.

1.3 “Price” refers to the total agreed price of the Vehicle explained in Clause 3.

1.4 “Payment Method” refers to the method of payment agreed by both Parties as set out in Clause 4.

1.5 The heading names in this Agreement are used as a reference only and do not form part of the Agreement.

1.6 This Agreement may be executed in both English and other languages. If there is conflict or confusion between the Agreement and its various translations the English version shall take precedence.

1.7 If either part of or the whole of a clause is deemed invalid or erroneous then only that clause shall be deemed void and the rest of the Agreement shall remain enforceable.

1.8 This Car (Used Car) Sale Agreement may be executed either in one original or in two counterparts.

1.9 The terms of this Agreement shall be deemed to be binding on both Parties based on their respective conduct notwithstanding any error or defect in the execution of this Car Sale Agreement.

This clause explains that even if there’s a written error in the agreement, the contract is binding on both parties if they complete the sale.

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2. Obligations of the seller

It is agreed that:

2.1 The Seller warrants that all details provided are accurate.

2.2 The Seller has no affiliation with any car buying, selling, or advertising group.

This standard car sale agreement is designed for transactions where the vehicle is being sold by a private party, not a car dealer, or similar entity. Commercial sellers typically have higher liability, so private sellers should explicitly state that they are not conducting the sale as a business. Remove this clause if a professional car seller is using this contract template.

2.3 The Seller warrants that he is the true owner of the Vehicle and that the Vehicle has not to the best of the Seller’s knowledge and belief been stolen and no other circumstances exist of which the Seller is aware which reasonably affect the Seller’s good title to the Vehicle.

2.4 The Seller is the full owner of the Vehicle and has sole authority to sell the Vehicle to the Buyer.

2.5 There is no outstanding finance, residual, or debt of any kind attributed to the Vehicle.

2.6 The Vehicle has a full service history and any/all accidents have been made fully known to the Buyer.

2.7 The Seller has made the Buyer fully aware of any current faults of which he is reasonably aware with the Vehicle and that there are no deliberately hidden faults on the Vehicle.

2.8 The Seller will provide the Buyer with all spare keys and the service manual.

2.9 The Seller will provide the Buyer with all necessary paperwork and documentation relating to ownership of the Vehicle upon payment of the Vehicle.

After the car sale concludes, the buyer should receive the following documents from the seller: a copy of the signed and dated sales agreement, the car’s registration papers, the complete service history, and the latest roadworthy certificate.

2.10 Once the Buyer has purchased the Vehicle and the payment has cleared the Seller is required to release the Vehicle into the Buyer’s possession.

2.11 The Seller is not liable for subsequent faults, normal wear and tear, or defects unless those defects were deliberately hidden or if a guarantee is offered by the Buyer to the Seller.

2.12 The Seller provides no guarantee.

A guarantee in a private car sale agreement is optional. If included, the clause can be modified as follows: “The Vehicle is sold with a warranty of its roadworthiness and continued safe operation for a period of (number) months. During this period, any defects that arise will be repaired at the expense of the Seller, except for defects caused by the Buyer.”

3. Obligations 0f the buyer

It is agreed that:

3.1 The Buyer is to pay the agreed Price to the Seller.

3.2 The Buyer warrants that all details provided are accurate.

3.3 Payment of the Vehicle is to be made under the terms agreed and set out in Clause 4.

3.4 The Buyer warrants that he is fully aware of the Vehicle history and any current faults of the Vehicle.

3.5 The Buyer is responsible for paying the correct Price for the car as agreed between the parties.

3.6 The Buyer has received all necessary paperwork and documentation relating to ownership of the Vehicle upon payment.

3.7 The Buyer has viewed the Vehicle at the Seller’s address and accepts the Vehicle in its current state as seen at the viewing(s).

3.8 The Buyer warrants that he is buying a second hand vehicle “as seen” and with the sole exception of deliberately hidden faults assumes responsibility for the car in the condition it is received at the signing of this Agreement.

4. Payment of the vehicle

Adjust this clause based on the agreed payment method. For instance, if scheduled payments are agreed upon, use the following format: “Payment shall be made according to the following schedule: 01/01/2017 – $100.00 (cash), 02/01/2017 – $200.00 (check), 03/01/2017 – $300.00 (bank transfer).” Other examples include: “Full payment of $10,000.00 in cash,” “Bank transfer payment of $10,000.00 to Account Number XXXX, Sort Code XXXX,” and “Payment of $10,000.00 by check.”

The total purchase price to be paid by Buyer to Seller for the Vehicle is [Vehicle.Price].​

Method of payment:

​

​

​

​

​

Upon the receipt of payment in full, the Seller agrees to transfer to the Buyer ownership of the Vehicle.

buyer will pay on date of sale

You may also include other fees, such as car sales tax, and who’s responsible for paying this if it’s applicable. Car sales tax varies from country to country. So you’ll need to check the regulations in your area and ensure you include them in your car sale agreement form.

5. General

It is agreed that the Contract supersedes any prior discussions or propositions between both Parties.

6. Variation

Any variation to this Car Sale Agreement shall be made in writing and signed by both Parties.

7. Governing law, disputes and arbitration

It is agreed that:​

7.1 This Car Sale Agreement is subject to the sole jurisdiction of the laws of [Sender.Country].

7.2 Disputes under this Car Sale Agreement shall be subject to the sole jurisdiction of the courts of [Sender.Country].

7.3 Both Parties agree that in the event of a dispute following the signing of the Agreement that they shall enter into arbitration before the International Chamber of Commerce before an arbitrator whose judgement shall ultimately settle the dispute and be final.

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8. Vehicle details

Including a description of the car’s condition is vital when selling a vehicle. Under this description, the seller should also note any damages. These can include cracks in the windscreen, dents in the bodywork, etc. Add this to your car sale contract template.

The substance of the deal is the following vehicle:

Type of Vehicle:

Enter vehicle type

Make and Model of Vehicle:

Enter vehicle brand and model

Vehicle Registration Number:

Enter vehicle registration number

Year of Vehicle:

Enter model year

Color of Vehicle:

Enter vehicle color

Vehicle Identification Number (VIN):

Enter vehicle identification number

Total Vehicle Mileage:

Enter total vehicle mileage

Engine Number (optional):

Enter engine number if necessary

Agreed Vehicle Sale Price: [Vehicle.Price]​

9. Signatures:

I hereby accept the payment of [Vehicle.Price] from the Buyer for the purchase of the Vehicle.

Seller

​

​

​

​

​

MM / DD / YYYY
Signature

Buyer

​

​

​

​

​

MM / DD / YYYY
Signature

​[Sender.FirstName]​[Sender.LastName]​

​[Client.FirstName]​[Client.LastName]​

For this simple car sale agreement to be considered legally binding, it must be signed and dated by both parties. If the agreement isn’t signed, it may not be considered should legal proceedings be taken.

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Car Sale Agreement FAQ

  • A sales agreement for a vehicle is a contract between a private party selling a used vehicle and another party or legal entity purchasing it. This document formalizes the terms and conditions of the purchase and creates a legally binding relationship between parties.

  • When writing a car sale contract, a few things must appear on the agreement. The agreement must contain both parties’ names and contact details, the details of the vehicle being sold, and any other relevant disclosures. Using a vehicle sale agreement template is recommended to ensure your agreement includes all of the required legal information to make the contract binding.

  • When you describe a vehicle in a sales contract, it’s important that you include as many identifying factors as possible. At a minimum, it should include the make, model, year released, registration number, and color. In the best cases, you should also include other details such as the VIN (vehicle identification number), engine number, and recorded mileage.

  • Generally no, a seller can’t back out of a vehicle purchase agreement once it’s signed. However, they can negotiate with a buyer and in some cases they can peacefully prevent the deal from going through. This is an option, though an unreliable one.

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.

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Car Sale Agreement Template

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This Car Sale Agreement sets out the terms and conditions upon which Seller shall effect the sale of the Vehicle to Buyer

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