A used car bill of sale template is a simple legal document executed to transfer ownership of the vehicle from one person or entity to the new owner. Generally, it contains the minimum required information to prove that a transfer of ownership of a used vehicle has taken place.
Importance of a Bill of Sale for Used Car
The document is an affirmation that the sale was conducted in a way that was agreed upon by all parties involved. It is intended to prevent fraud that may be perpetrated by any of the parties, and minimize the possibility for having the vehicle seized illegally.
Although it is normally the seller who drafts the document, it is advisable to have a used car bill of sale template on file if you are a party to a used car sales deal. This is to make sure that all necessary information is included in the document for everyone’s protection.
Check it out the Bill of Sale FAQs to get more information.
Components of a Used Car Bill of Sale Template
- Seller, Buyer, and Vehicle Information – Whether typed or handwritten, the document must contain the name and address of both the buyer and seller for future reference, and to determine who to contact in case of breach or non-compliance to the stipulated terms. The vehicle identification number (VIN), make, year, and mileage, must also be included. The document must state whether the mileage is accurate or inaccurate, and mention that the seller possesses full authority to transfer the ownership. This is necessary for reference in future disputes when establishing the condition of the vehicle at the time of sale is called for.
- Warranty Exclusions – It must be clearly stated that there are no warranties implied as the car is sold on an “as is” basis. This is to establish responsibility for future problems or damage on the car. The document should also state who will shoulder the taxes, encumbrances, and fees.
- Date and Cost – The date should appear in the first section of the document, next to the names of the seller and buyer. The exact amount the vehicle was being sold for should also be mentioned. Most states use this information to determine the amount of taxes due on the vehicle. Depending on the state, taxes may have to be paid prior to titling or registration.
- Ownership Transfer – Title to the vehicle is required although the bill already clearly states the transfer. You can check your state’s DMV for the exact requirements for full ownership transfer.
Download used car bill of sale template
The used car bill of sale template is available in our website for free. Just make sure that you fill all necessary information out in used car bill of sale template to avoid encountering problems in the future.