46+ Sample Sale Contract Templates

What Is a Sales Contract?

When you purchase something valuable and expensive, you want to make sure you’ll get a receipt in case the thing you bought has damages. A sales contract serves the same purpose as a receipt. It is a legal paper that records or documents the transaction between a seller and a buyer. It is an agreement that the parties involved sign in return for products, services, or money. Moreover, a sales agreement details the background details of the parties involved, the transaction, the responsibilities and rights of both parties, and statements concerning contingencies. The agreement gives both the seller and buyer what they should expect from their deal. There are two common types of sales contracts: a house sale contract and a vehicle sales agreement. In this article, we are going to focus on the latter.

Statista reports that in 2019, there were approximately 5.34 million homes sold in the United States.

When we talk about vehicles, Statista stated that there were more than 4.7 million passenger cars sold in the U.S. in 2019.

Moreover, in the same year and the same country, the number of light truck and car sales were about 17 million and about 77 million worldwide.

Practical Tips to Apply When Purchasing a Car

Almost all of us depend on cars or other vehicles for transportation. As mentioned in the statistics above, many Americans do buy cars, and maybe you are one of them. Also, perhaps you’re still planning to buy one for the first time, or buy another to replace the old one. Regardless of what your purpose is, here are practical tips when purchasing a car.

Do some research on cars. You need to know what vehicle you want to buy before impulsively entering into an auto deal or auto sale contract with an agent. Do some research on the price ranges of cars. Search specifically for the invoice price and not for the manufacturer’s suggested retail price. The invoice is the actual price that a manufacturer charges a dealer. Knowing this information will help you negotiate with the car’s price. Now, if you plan to purchase a used vehicle, research on the current price of the model you want to buy.Be wise in choosing your financing options. Several people choose to get financial support from car dealerships, but dealership rates are usually higher compared to loan rates one can get from credit unions or banks. So, think about it. Also, you can get a written quoted price from a financial institution and present it to the dealer for negotiation. Moreover, if you decide to apply for an auto loan, make sure you have a good credit score. Lenders will look at your credit score to see how responsible you are in paying your debts. A higher score will give you a chance to pay for a lower interest rate.Buy what you can manage. If you plan to buy another car while you still have an auto loan to pay, you must reevaluate if you can manage to purchase another vehicle. A more practical option is to finish off your existing debt before getting into another one. Another option is to temporarily keep the money you used to pay off the old car for at least one year and use that money as a downpayment for a new one. As long as your old vehicle is still functional, that will not be a problem.Negotiate the terms. Next to purchasing real estate, buying a new vehicle is another big investment you have to make. Reality is, you’re going to pay for a car for the next five to six years. So, do your best to negotiate the terms of a car loan and lower the purchase price as much as possible. Begin with an impossible price, and work in reverse. If the sales agent offers a specific amount for a 72-month loan, ask him for the same price with a 60-month loan. Be confident when negotiating, so the agent will know that you are playing games with him.Purchase a car based on its original price. Car dealers will convince their buyers and attract them to monthly payments. Do not easily give in to these appealing deals. If what they offer is a 72-month loan, that only means you have to pay for more interests as well. For that reason, negotiate and purchase a car based on its original price. Note that dealers may add hidden expenses into the deal, such as taxes, vehicle preparation, delivery fees, and other costs that they will not bother to inform you. So, it’s better to ask.Don’t tell the seller about your trade-in. Tell the seller about your trade-in only at the end part of your transaction. For example, you’re considering a $20,000 vehicle, and the dealer’s secret last price is $16,000. If your trade-in is only worth $1,500 and the dealer knows about it, he will gladly offer you the car for $18,500. You could have bought the car for only $16,000, or even $14,500 if you tell the dealer about the trade-in after he mentions the lowest price.Don’t buy the add-ons. Remember that you are going to pay off for a car for many years. So, if you are under a loan, buying accessories will naturally increase the price. Add-ons can be expensive, and you don’t want to spend your money on what you don’t need.Always do a test drive. Test drive the car, so you’ll know whether you’re going to be comfortable in it or not. You can bring your spouse kids along with you for a test drive. Their comfort is important too. Your family members will most likely give an honest assessment of the car. You should do the following to test the vehicle: idling, viewing, and checking controls, handles, and brakes.Ask for the assistance of a mechanic when you consider purchasing a used car. Allow a mechanic to check the overall condition of the vehicle before you sign a car sale contract. If a mechanic finds issues concerning maintenance, it will help you decide whether you should buy the car. Also, a mechanic’s honest assessment will help you negotiate a more reasonable and lower price.

How To Effectively Sell a Used Car

To earn more, and get all the cash, sell your vehicle directly to customers rather than selling it to a dealer. Learn how to price, advertise, and sell your car strategically by following the steps below.

Step 1: Prepare the Necessary Paperwork

Prepare the necessary documents before selling your car. First, you’ll need to get the car’s title. This slip will give you the right to trade your used vehicle. If the asset is still under a loan, call your lender and inquire how you can arrange it for sale. Then, check the Department of Motor Vehicles’ online site to see what other requirements you need to transfer ownership legally. Also, don’t forget to prepare a basic sales contract or a bill of sale contract for a safer transaction. Moreover, get a car history report in case your customer will ask questions regarding the vehicle’s history.

Step 2: Set the Price

Know the current market value of your vehicle, so you have a basis for setting your price. Then, set the price a little bit higher than the current value. So, if the price list says the vehicle is equivalent to $4,500, you can set the price at $5,000 to have space for negotiation.

Step 3: Advertise by Taking Good Photos

Take many photos that are good enough to attract your buyers and to compete with your competitors. Take pictures of your car from different angles and under good lighting. Park it in a beautiful location. Also, take a photograph of the inside. Moreover, include photos of the car’s current mileage or odometer, the engine, and the tires. You can post your pictures on different advertising sites, such as Craiglist, eBay Motors, Autotrader, etc.

Step 4: Screen Your Callers Carefully

Before actually doing business with your callers personally, do some screening first. You can make a separate Google account and phone number for the trade. When you think an offer is legit, call the buyer and meet him/her. You can expect several calls for a vehicle that you post on a low price, but let those calls go directly to your voicemail. Then, you can decide which potential buyers you’ll call back.

Step 5: Let Your Customer Do a Test Drive

Meet with your potential buyer and bring the car with you. You can meet at any safe place you can do a test drive. Let your customer do a test drive, but go with him/her. While doing the test drive, answer the customer’s questions. Also, let them pay for the mechanic’s fee if he/she wants to make a mechanic assess the vehicle.

Step 6: Close the Agreement

After everything, the buyer will most likely start to negotiate with the price. Allow him to make an initial offer. Also, before closing the agreement, make sure he/she is ready to pay you in cash or check. Several states may require you to submit a release of liability paper that serves as proof that you are no longer the car owner. Moreover, don’t forget to terminate your car insurance policy.


What are other examples of a sale contract?

Examples of a sale contract include a property sale contract, a business sale agreement, and a horse sale contract. A property sale contract is a deal between two individuals concerning the purchase of real property. A business sale contract, or also known as a purchase agreement, is an official paper that spells out the terms regarding the sale of a business. A horse sale agreement is an arrangement between a seller of a horse and a buyer. The contract usually contains information about the horse’s history and some statements concerning contingencies.

What is a bill of sale contract?

A bill of sale contract is a paper that contains the details regarding the sale of possessions or the transfer of personal or real property from one individual to another. It serves as proof of the transaction between the seller and buyer.

What is the difference between a sales contract and a bill of sale?

A simple sales contract is used during the transaction between a buyer and a seller. A bill of sale is used during and after a purchase.

A sales contract is a document that smoothens the transaction between a buyer and a seller. It is most importantly used when these transactions involve large sums of money. Therefore, any seller or buyer, who reaches an agreement concerning the transfer of an asset, must use a sales agreement for their protection.