How to Write an Agreement When Selling a Car

Selling a car is a significant transaction, and it`s crucial to have a written agreement to protect both the buyer and the seller. A well-written car sale agreement helps avoid misunderstandings, legal issues, and potential disputes. Here are some tips to help you write a solid agreement.

1. Include essential details

The sale agreement should include the car`s make, model, year, identification number, and mileage. Ensure that all information provided is accurate and up-to-date. Also, include the date of the sale and the purchase price.

2. State the terms of payment

Specify how the buyer will pay for the car, whether it`s cash, check, or online payment. If the payment is by check, state whether the sale is contingent on the check being cleared. If the buyer will be making payments over a specific period, include the payment schedule and the interest rate if applicable.

3. Specify any warranties or guarantees

If you are selling the car with any guarantees or warranties, include the details in the agreement. For instance, you could offer a limited warranty, which provides specific guarantees for repairs or replacement if the car has specific issues within a specific period.

4. State the condition of the car

Include details of the car`s condition during the sale. Indicate if there are any defects, damages, or issues with its performance. This information will protect you from any potential lawsuits if it`s discovered that you were not truthful about the car`s condition.

5. Include a disclaimer of liability

Include a section in the agreement that limits your liability if anything happens to the car after the sale. This disclaimer will protect you from any allegations that you were responsible for any damages or issues that the car may have had after the sale.

6. Sign the agreement

Both parties should sign and date the agreement. This signifies that they agree to the terms stated in the agreement. Provide copies of the signed agreement to both parties, and retain a copy for your records.


By following these tips, you can create a comprehensive car sale agreement that protects you and the buyer from any potential legal issues. Remember, a car sale agreement is a legally binding document, so it`s essential to write it with care and attention to detail.