What Is a Car Agreement?
A car purchase agreement, also known as a vehicle contract agreement, is a lease agreement for a car. From its name, generally, it is a broad type of agreement that concerns the agreement between the seller, and the buyer or renter of the car. The car purchase agreement can be all about selling, buying, car rentals, and car loans. The agreement states the following written communications of the traders, the car's maintenance and insurances, and payment agreement.
According to research, the car purchase agreement is most important in terms of the vehicle bill of sale which would indicate the full terms of the sale, including the names of those involved, important characteristics of the car, the amount of money for which the car was sold, and the exact rights and responsibilities in car purchase agreement.
How to Write a Car Agreement
Having a car is not all about driving all around the place. Like properties, vehicles must also undergo the legal process. Here are the following steps on how to make a legitimate car agreement.
1. Provide the Information of the Seller and Buyer
As you start, make sure that you have a professional document template for you to use in making a car agreement to save time. You can start by providing information about the seller and the buyer. Start with encoding the seller's name, complete address, driver's license, and relevant contact details. Then, provide the buyer's information. Like the seller's information, provide the basics like the name, address, and so on. You can also add their occupations and driver's licenses for purposes of identification. Provide a brief space for the seller to write a specific reason for selling the car or if the car is brand new, you may disregard leaving a space.
2. Include the Car's Description
Who buys a car without knowing what it looks like? Basically, it is important to provide the vehicle's description to guide the buyer what the car actually looks like. Describe the car's color/s, model and brand, body type (whether it be a sedan, SUV, pickup, etc.), interior aspects, and other unique features. Provide the Vehicle Information Number (VIN) and odometer reading. The seller can also provide a picture of the car on the sample agreement. If the car is secondhand, include the date when the car was first purchased as well as the address where it is bought. If the car got any problems, it must be stated honestly and an explanation of how the car got such a problem.
3. Elaborate the Details About the Sale and the Pricing
In this part, the overall sales price of the vehicle must be elaborated. Based on a trusted source, the overall sales price must be broken down according to the main price of the car and other miscellaneous fees such as documentation, destination, advertising, dealership, registration, and sales tax.
4. Consider Financing Information
The financing information of the car must also be elaborated like the car's pricing. According to the same source, the car will be purchased through financing the total purchase price of your vehicle (with the fees and taxes), amount of money which was paid as the down payment, the total amount that will be financing, the interest rate of the loan, payment schedule, and the amount of the monthly payments for the duration of the term.
5. Add Signature Block
Add a signature block with the seller's and buyer's printed name to finalize the business agreement. When everything is settled, the seller and the buyer must sign and date the agreement.
6. Proofreading the Agreement
According to research, the buyer should be aware of the requirements before purchasing a car. Everything must be included in the agreement and that is why it is necessary to make the contents clear and correct. After this, print all the copies for the seller and the buyer.