Use this contract:

• To sell a new or used car or motorbike.
• Whether the buyer collects the vehicle or has it delivered.
• Whether or not you are responsible for importing, registering, or carrying out roadworthiness tests.
• When the price is paid in cash or by bank transfer, before or after the sale.

Safeguard your seller’s rights with the following terms: 

• Indication and acceptance of notified defects, current mileage and relevant technical documentation. 
• Obligation of the purchaser to give preference to repair, replacement, or price reduction before cancelling the purchase due to defects. 
• Stipulation of approximate and flexible deadlines with obligation to tolerate slight delay. 
• Requiring payment in advance, in full or in part. 
• Specification of charges, taxes, and customs duties to be invoiced in addition to the price. 

As a buyer, you can benefit from the following opportunities: 

• Obligatory technical inspection by the seller for used cars. 
• Transport insurance and additional repair guarantee required. 
• Possibility of an instalment plan with or without advance payment. 
• Allocation of time to cancel the order before the due date. 
• Capping of charges, taxes, and customs duties payable.

Standard Car Sale Agreement

A car sale agreement template is a legal document signed between a seller and a buyer to regulate the obligations, rights, and legal risks associated with the sale of any type of vehicle. Using our automobile sale contract template it’s possible to minimise the seller’s risks and ensure payment of the purchase price.

Sellers use an auto sale agreement template:

• To conclude a sale of a new or used vehicle (for example: an automobile, utility truck, or motorbike).
• To perform a domestic or international sale and regulate terms of delivery, warranties, restrictions, limitations on liability, and quality inspection period.
• To establish the terms of payment and coverage of ancillary costs, such as VAT, customs duties, or transportation insurance.

Eight tips on a Car Sale Agreement Template

Our sample of vehicle sale agreement protects the seller’s legal interest with the following options:

• Indicating any known defects, the date of the last inspection, and the mileage of the used auto.
• Indicating any additional costs (for example: taxes and customs duties) that may be passed on to the buyer in addition to the price.
• Requiring a full or partial down payment.
• Charging cancellation penalties if the buyer has the option to cancel the order early.

Our car selling agreement template protects the buyer as well and offers advantages such as:

• Payment plan with the option to pay for the purchase in instalments.
• Orders can be cancelled in advance before a certain date, with or without a cancellation penalty.
• Possibility to cancel the agreement if the delivery is later than a certain period, with a late delivery penalty.
• Additional manufacturer’s warranties, priority compensation in case of defects, and longer warranty period, as well as other legal remedies.

Create a Car Buying Contract with AdminTech

Using AdminTech online document builder and an automobile sales contract form, you can simply fill in the necessary information, and the document will automatically adjust to your specific needs.

A professional car buying contract template allows to cover the following information:

• Parties’ contact details and identification.
• Description of vehicle and its characteristics.
• Mileage, known defects, and preliminary technical control for used cars.
• If and when the vehicle is recuperated or delivered to the buyer.
• Purchase price, taxes, ancillary expenses, and terms of payment.

Car Selling Agreement Template FAQ

What’s the difference between a sales agreement and a bill of sale?

Car sale agreement template by AdminTech provides sellers with an opportunity to create a professional document to regulate all rights and liabilities of parties in relation to the eventual sale of a vehicle.

A bill of sale is a sales act stating that a purchase has already been performed, that the vehicle is accepted by the buyer as is, and outlines if any remaining price is still due.

What compensation is the buyer entitled to in case of defects?

If the sold vehicle shows defects at the moment of its sale, the buyer is generally entitled to one of the following remedies, depending on which is the most appropriate in the circumstances:

• Proportional reduction of the price.
• Repair of vehicle at seller’s expense.
• Replacement of vehicle by an identical or similar model.
• Cancellation of sale.

In our auto sale agreement template, the parties may determine the priority to be given to each measure.

What limitations to liability can the seller reserve?

For used vehicles, parties generally accept defects upfront without reserve by a specific clause in our sample of vehicle sale agreement.

Seller’s often choose to limit their liability to a certain amount, which refers not to reimbursement of the price, but to other indirect damages, such as where the defects of the vehicle cause damage of personal property inside or outside the faulty automobile.

Can a vehicle sale be done in verbal form?

English law does not require a written form for a sales agreement, but it is advisable to use a car-selling contract template or at least a sale of vehicle act for the following reasons:

• The only tangible proof of parties’ terms.
• A solid proof of value for customs authorities and tax administration.
• A necessary title of ownership to register the number plates on the vehicle.

Can the buyer cancel the purchase after signing the agreement?

The buyer may cancel a purchase in such cases as:

• Undisclosed defects that cannot be reasonably eliminated.
• The purchase was agreed under fraudulent influence or error.
• The sale becomes impossible to accomplish due to force majeure (for example, a vehicle is damaged before delivery).
• As per the specific terms of the car purchase agreement template that allow to do so in some circumstances.

Cancelling the purchase would rather be requested in scenarios where other remedies are either insufficient, or unreasonable.

How can sellers ensure a successful vehicle sales experience?

To ensure a successful selling experience, it’s generally advisable to:

• Comply with English law and regulations on technical control for used vehicles.
• For a used car indicate its mileage and known defects as well as attach the last technical inspection report.
• Determine if additional preliminary or after-sale duties must be done by the seller (for example: repainting, registration, technical inspection).
• Draft and sign a detailed automobile sales contract with our car selling agreement template.
• Keep proper records of all transactions, complaints, and notifications for evidentiary purposes.

Draft your legally car sale agreement template with the AdminTech online document builder.