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What Is a Vehicle Purchase Agreement?
A vehicle purchase agreement or also known as a vehicle contract is an agreement of both the seller and buyer of a vehicle. The agreement is mainly used for sales and purchase of a vehicle as well as the terms and conditions applied to the contract. When purchasing a vehicle from a private seller, a private vehicle sale agreement will be used as the contract of the vehicle. There are necessary forms that you should fill out as proof that the vehicle is no longer in the hands of the seller. Should there be any form of corrections stated on the agreement, a blank vehicle purchase agreement can be printed out.
What Are Things You Should Look for Before You Sign?
In signing an agreement, always bear in mind that all information can be used against you in a court of law. It is important to review all details before proceeding to sign the contract. With that in mind, here are things that you should look for before signing a contract:
1. Mistakes On Your Personal Information
Sometimes, we tend to take for granted the misspelled or misplaced letters in our names or even the important details. Double-checking all personal information lessens the errors in the document. It can also make your document neat and presentable to look at without any corrections.
2. Extra Fees
Always pay particular attention to extra fees or miscellaneous fees. These fees are often hidden from the buyer to boost up the profit of the seller. When you are about to pay and you are in doubt, always ask the seller regarding that matter. It may seem like it is a real fee but turns out it is a hidden charge. When extra fees are questionable, ask the seller and do not sign the contract yet unless it has been explained thoroughly and in a concise manner.
3. Added Options That You Did Not Request
When you look through the added options and see something odd than your usual option, ask the seller immediately before going through the other details. At least, mark the option with a pen and try to compute the options that you requested. Or, you can have it printed again by the seller.
4. Charges For Agreed-on Free Items:
Products especially vehicles tend to have a lot of freebies acknowledged but just to make sure that those items are really for free and are not being charged, check those items on the list and see-through that it shows no amount. So, basically, it can be printed out on your list but you should not see any amount placed on the agreed-on free items.
5. The Value of Your Trade-in
It is important that the trade-in value of the vehicle contained in the sales contract matches the offer made by the salesperson. If you find any irrelevant details, you may refer to the vehicle purchase agreement for further clarification. All you need to know and should understand can be done in just a few minutes. Should there be any discrepancies with regards to the trade-in value, the buyer is not obliged to sign any sort of documents handed. However, dealerships are honest and unquestionably polite. Mistakes are often due to system errors or even backlogs that is why it is best and suggested to review all sorts of documents, data, forms, and etc. before signing the vehicle purchase agreement.
Elements of a Vehicle Purchase Agreement
When purchasing a car, one must look in-depth at the agreement that needs to be signed by the buyer. There are some standard form contracts that may seem too overwhelming to read and understand, that is why looking closely into the elements of a vehicle purchase agreement is the best way to be aware of what the agreement is all about. Following that, stated below are the elements:
How to Create a Vehicle Purchase Agreement
Creating a vehicle purchase agreement can be convenient and hassle-free when purchasing a car from a private seller. In this way, the buyer gets to have a lesser price compared to the trading-in dealership. One of the necessary forms that should be filled up by the buyer is the Bill of Sale for Car, wherein it is a piece of the document containing all the transactions of the vehicle purchase agreement, the necessary details should be put into account.
In generating a vehicle purchase agreement, here are steps that you can follow:
1.Identify the Designated Buyer and Seller
It is required in the agreement to identify the buyer and seller with their full name provided with the contact numbers for both parties. Several relevant questions may be asked by the salesperson. If you are a co-owner of the vehicle, the information of that person alongside the owner must also be taken into account.
2. Specify the Seller Has Good Title to the Vehicle and the Legal Right to Sell the Vehicle
This serves as a good outcome for the seller because it means that the seller is trusted with legal rights and documents following the terms and conditions of the agreement. Sellers who have a good reputation tend to have bigger goals for their potential and future customers. They set standards that fit their customer’s satisfaction which makes them gain a good title and more customers are attracted to this kind of seller.
3. Identify the Vehicle by Model, Year of Manufacture, VIN Number, and Name the Agreed-upon Purchase Price
The details stated above implicates that all information of the vehicle must be written on the agreement to fully grasp and understand that the buyer takes full responsibility for the vehicle once it has been transferred by the seller. Identifying the model and the year it was manufactured implies that you can safely use the vehicle as these things are important in registering them in the LTO. Furthermore, knowing the agreed-upon purchase price ensures that there will be no biases or double-dealing. VIN number or the vehicle identification number is a code that is assigned to every vehicle purchased. Each vehicle has a unique VIN number that is why there should be no two vehicles with the same VIN numbers.
4.State that the Buyer Promises to Pay the Total Named Purchase Price to the Seller
This allows both parties to legally dwell on the purchase prices and there shall be no entry of fraud or anything against the agreement. Documenting all payments can be convenient as it can be used for legal purposes.
5. State the Date of the Sale and Purchase Price
The date of the sale and its purchase price should be reflected in the contract as well as the mode of payment, may it be through cash, money order, cashier’s check, or even payment plans. When both parties agreed to a payment plan, the seller must hold the title of the vehicle until full payment has been acknowledged. Then, send the title to the buyer through certified mail after all accounts and obligations are settled. Once everything has been addressed and confirmed thoroughly, both parties are to affix their signature which follows the next step.
6. Provide Signature for All Named Buyers and Sellers, and Make Sure that All Information Is Factual and Accurate
Affixing the signatures for both parties ensures that they agree to the signed document and in cases of legal impediments, the signed agreement can be used inside the court. All the details stated in the agreement should be accurate. Providing false information about the details of the vehicle can lead to or a breach of contract or the contract is voided. Both parties should understand and comprehend the necessary information starting from the identity of both parties, the terms and conditions until affixing the signatures. If there is no false information stated in the contract and everything is clear for both parties, the next step comes in.
Having all these elements in mind can make a wise buyer effectively sign the agreement. Before buying a car, the buyer should be aware of the requirements before purchasing. All these are contained in the agreement document. Before signing the contract, make sure that all documents are factual and that
What’s the difference between a used car sales agreement and a vehicle purchase agreement?
There are a lot of people misunderstand the difference of both car sales agreement and vehicle purchase agreement. The used car sales agreement is a legal contract between a car seller and a car buyer. The vehicle purchase agreement is a document including all terms of purchasing a car.
What does a bill of sale show on a car?
It shows the proof that the seller has sold the vehicle or car to the buyer in which it provides a record of the vehicle’s sale price and date.
Why do you need a purchase agreement form?
This is so that all the agreements made must be strictly followed, and to ensure that both parties have come to a consensus regarding the sale, which is why there are agreement forms to make sure of that.
Carefully understanding the vehicle purchase agreement can lead to lesser issues and mistakes when a product has been paid in full amount. Always bear in mind that any false information given and stated in the agreement can be used against the buyer and the seller if either of them forfeits a term. There are personnel in car companies or even in dealerships that can assist you throughout the course of signing the agreement. If there are any mishaps or you find something odd in the contract, you are free to walk away and not sign the contract. All in all, standard forms of agreement can be made of help especially when you are selling or transferring a product from one source to another.