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Car Sale Agreement Template


Prepared for [Buyer.FirstName] [Buyer.LastName]

by [Seller.FirstName] [Seller.LastName]

This Car (Used Car) Sale Agreement (the “Agreement”) sets out the terms and conditions upon which ::SellerName:: (the “Seller”) who resides at ::SellerAddress:: shall effect the sale of the Vehicle to ::BuyerName:: (the “Buyer”) who resides at ::BuyerAddress::, 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.


1.1 “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.

PandaTip: Both Parties may wish to retain original signed copies of the Agreement for future reference.

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.

PandaTip: This Clause explains that, even if there is a written error in the Agreement, the contract is binding on both parties if they actually complete the sale.


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.

PandaTip: This clause assumes that the Vehicle is being sold by a private individual (and not by a garage, car dealer etc). The law varies from country to country, and state to state, and generally a higher degree of liability is attributed to commercial sellers, so private sellers should make it clear that they are not acting as a business in this event. If the contract is being used by a professional car dealer, then they should remove this clause and renumber the subsequent sections.

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 could reasonably affect the Seller’s good title to the Vehicle. PandaTip: If there is more than one registered owner on the Vehicle then you can use the “Search and Replace” function to replace the word “Seller” with “Sellers” (in plural). All Sellers must then sign on the execution (signature) page.

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.
PandaTip: You can include a list of faults here if preferred, or you could introduce a clause stating “those faults more fully set out on the annexed sheet” – then include an extra page on the back of the contract with a list of agreed defects to be initialled by both parties.

2.8 The Seller will provide the Buyer with all spare keys and the service manual.
PandaTip: Remove or amend this Clause if required.

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.

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 of 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.

PandaTip: It is not normal to include a guarantee in a private sale, however if the Seller wishes to do so then you can amend this Clause where necessary. A suggestion might be: “The Vehicle is sold with a guarantee of its roadworthiness and continued safe operation for a period of XXX months and any defects occurring during this period will be rectified at the expense of the Seller excluding only defects which are caused by 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).

PandaTip: Amend this Clause where necessary if it was viewed elsewhere.

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.


PandaTip: Amend this clause depending on the agreed mode of payment. For example, if both parties agree to scheduled payments: “Payment is to be made in accordance with the following schedule:
01/01/2017 $100.00 (to be paid in cash)
02/01/2017 $200.00 (to be paid by cheque)
03/01/2017 $300.00 (to be paid by bank transfer)
Other examples might be:
“Payment by cash of the amount of $10,000.00 in full”
“Payment by bank transfer of the amount of $10,000.00 to the following details Account Number XXXX Sort Code XXXX”
“Payment of the amount of $10,000.00 by cheque”.


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


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


It is agreed that:

7.1 This Car Sale Agreement is subject to the sole jurisdiction of the laws of ::State/Country::.

7.2 Disputes under this Car Sale Agreement shall be subject to the sole jurisdiction of the courts of ::State/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.

PandaTip: Remove arbitration if you don’t like it.


Upon the receipt of payment in full, the Seller agrees to transfer to the Buyer ownership of the following vehicle:

Type of Vehicle: _______________________________

Make and Model of Vehicle: ______________________

Vehicle Registration Number: _____________________

Year of Vehicle: ________________________________

Colour of Vehicle: ______________________________

Vehicle Identification Number (VIN): ________________

Total Vehicle Mileage: ___________________________

Engine Number (optional): ________________________

Agreed Vehicle Sale Price: _______________________

PandaTip: Remove or amend detail lines if necessary.



I hereby accept the payment of £___________ from the Buyer for the purchase of the Vehicle.

PandaTip: Amend clause where necessary if payment is not made in full on signing.

Car Sale Agreement


I accept to pay full and final payment of £___________ to the Seller for the purchase of the Vehicle in the manner set out in the Agreement.

PandaTip: Amend clause where necessary if payment is not made in full on signing.

Car Sale Agreement

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