by Ellie Coverdale

There are a lot of instances where you might want to sell your car privately than to a car dealership. However, in that case you’ll need to draft your own sales contract, whether you write one from scratch or you use a bill of sale template. We’ll explore more about how to do this yourself.

Writing Your Own Contract

1. Start with the basics.

Your contract should start by identifying the buyer, the seller, and the reason for the contract, in this case the sale of a car. You should also be providing the addresses for the buyer and the seller, as well as the driver license numbers for both parties, which will help with identification and verification. Then, you should be providing a description of the car, including any identifying characteristics, including at a minimum the color, year, make and mode, body type, vehicle identification number, odometer reading, and any unique features the car might have. Be sure to write clearly and check for spelling mistakes – State of Writing and Paper Fellows are two great online tools to help you write this contract without mistakes.

2. Indicate the delivery method.

You should write down the delivery method and responsibility if it’s not a local sale. You can either ship the vehicle, deliver it yourself, get the buyer to pick it up, or get a third-party delivery. If the delivery will cost some money, the contract must indicate which party will be responsible for the costs.

3. Verify the information.

If there is any inaccurate information about the car in the bill of sale, the contract may become void. There should be no misrepresentation, even something so minor as rounding up the miles on the car. You should state if any parts have been replaced or repaired. As per Nicole Randy, a business writer at Academized and Australian Help, “indicate the date of the sale and the purchase price, as well as the method of payment. This should include information about sales taxes, and whether it’s included or additional.”

4. Add the final details.

The seller has to provide the buyer with the final details, including the title and other key documents like emissions tests and service records. You must also indicate the status of the title, and a payoff letter from the financing company if you’re making ongoing payments on the car. This indicates the amount of money you owe and what your buyer has to pay for. Then, sign and date the contract, as well as the buyer and if possible, a witness. Make copies after everyone has signed.

Using a Bill of Sale Template

1. Find the Right Template

A lot of states will have their own bill of sale forms which you can get at a DMV. Then, print it and fill it out. There is usually a buyer’s section and seller’s section, and you should be putting the party and vehicle information in both sections. This includes the vehicle registration information, the make and model of the vehicle, the name and address of both parties, and the amount of the sale. There should also be a section for signing and dating the document.

2. Gifts or Donations

According to Tom Woods, a communications manager at Big Assignments and Ox Essays, “the bill or sale will have an area where you can indicate if the vehicle is being given as a gift or as a donation, and this is important to complete for tax reasons. For example, if you’re transferring the vehicle to a family member for free or for a low cost, you’re able to do so.”

3. Add Extra Information

You might with to add extra information to the bill of sale template, known as an addendum. This can be information like whether the car is sold as is, whether there are additional requirements, defects, a smog certification, or anything else necessary. When you put an addendum, make sure there is a witness and all parties sign and date the addendum. You should also be specifying the status of the title via the addendum.

Selling a car isn’t complicated, but it is important to follow all the right steps to make sure there’s no issues down the road.

Ellie Coverdale is a technical and marketing writer for UK Writings and Essayroo. She is passionate about sharing her experience and expertise with her readers, especially when it concerns legal and marketing advice. In her spare time, Ellie works as a writing coach for Boom Essays.