Provide the buyer’s and seller’s addresses as well. You may also want to provide the driver license numbers of both the buyer and the seller for identification and verification purposes.

Color Year Make and model Body type (pickup, SUV, 4 door sedan) Interior color Any other unique features of the car (including cosmetic or mechanical problems) Vehicle Identification Number (VIN) Odometer reading For example, “The vehicle is a silver 1995 Honda Civic LX with black leather interior and a sunroof. The VIN number is 123456789 and the odometer reads 167,000 as of March 14, 2011. ”

For example, if the owner of the car notes that the car has 167,000 miles on it in the contract, but knows that the vehicle actually has 200,000 miles and a faulty odometer, the entire contract may be voided. If the odometer has ever been replaced or repaired, state this in the contract. You can use the following boilerplate language: “I certify that the car’s odometer was altered for repair or replacement purposes while in my possession, and that the mileage registered on the repaired or replaced odometer was identical to that before service. ”[3] X Research source

Though not recommended, you can also stipulate an agreed to payment plan. For example, the buyer might pay $250/month for sixteen months. Only agree to a payment plan if you know the person to whom you are selling the car. A common fraud scheme is for someone to give an initial payment, then take the vehicle and disappear. If you do agree to a payment plan, be sure that you hold the car’s title until the payments have all been made in full. After all payments are complete, you can send the title to the new owner via certified mail. State whether the purchase price is inclusive of sales taxes. In some states, you must charge sales tax. You can state in the contract that your purchase price includes this sales tax (“inclusive of all sales taxes”), or decide that sales tax is additional to the price (“exclusive of all sales taxes”).

Make everything clear. For example, if you live in Georgia and will drive the sold car to the buyer’s home in Alabama and then fly home, state who will be responsible for the gas to drive the car to Alabama and for your flight home: “Seller will drive the car to Buyer’s home in Alabama and agrees to pay for all gas and maintenance costs until delivery is made. Buyer agrees to pay Seller’s flight home at a cost of $175. ”

Boilerplate language regarding the condition of the vehicle can read as follows: “The [car] is being sold “as is” and the Seller expressly disclaims any and all warranties expressed or implied. The Seller disclaims any warranty as to the condition or working order of the car. The Seller assumes no liability in connection with the sale of the car. ”[8] X Research source

You can include “boilerplate” language to indicate the status of the title if you own the car, such as the following: “The Seller warrants that 1) the Seller is the legal owner of the car; 2) the car is free from all liens and encumbrances; 3) the Seller has full right and authority to sell and transfer the car; and 4) the Seller will warrant and defend the title of the car against any and all claims and demands of all persons. ”[9] X Research source Get a payoff letter from the financing company if you are still making payments on the car. This will provide exactly the amount of money that you still owe on the car, and which your buyer must pay to purchase the car. [10] X Research source In most cases where a bank holds the vehicle title, the buyer writes one check directly to the bank for the payoff amount and another check to the seller for the remaining amount between the payoff and the sales price. In this case, the bank can usually mail the title to the buyer upon receiving the correct payoff amount.

A witness should also sign the contract after each party has signed the contract. Though it may not be legally required to have a witness to the sale of a car in most states,[12] X Research source having a witness to the contract may mitigate legal disputes about the accuracy of the contract. You can also sign the contract in front of a notary, if you wish. This adds another layer of protection, as the notary provides solid evidence that both of you are who you claimed and that you both agreed to the terms of the contract.

For example, you can find the Arizona Department of Transportation’s Bill of Sale here

Information you can expect to fill out includes the car’s VIN, make, and model, the name and permanent address of each party involved, and the sales amount. There will also be spaces in which each party involved will sign and date the document.

In some states, you may be able to transfer the title to a family member or relative for free or a low fee. If you want to give the car as a gift, you may need an additional form, such as the Affidavit of Motor Vehicle Gift Transfer in Texas. [13] X Research source [14] X Research source It used to be that you could “sell” a car for $1, thereby allowing the buyer to avoid paying significant sales taxes. Most states have found ways to circumvent this. For example, in Texas, if you are selling a car, the buyer will pay motor vehicle sales tax of 6. 25% on either the purchase price or the “standard presumptive value” of the car, whichever is highest. The state of Texas determines the standard presumptive value. [15] X Research source

This is an addendum to the sales contract made between the Seller, ___________________, and the Buyer, _________________, and dated ______________, regarding the vehicle with VIN number ______________________. Have a witness present, and make sure all parties date the addendum after both printing and signing their names.

You can include “boilerplate” language to indicate the status of the title if you own the car, such as the following: “The Seller warrants that 1) the Seller is the legal owner of the car; 2) the car is free from all liens and encumbrances; 3) the Seller has full right and authority to sell and transfer the car; and 4) the Seller will warrant and defend the title of the car against any and all claims and demands of all persons. ”[17] X Research source Get a payoff letter from the financing company if you are still making payments on the car. This will provide exactly the amount of money that you still owe on the car, and which your buyer must pay to purchase the car. [18] X Research source In most cases where a bank holds the vehicle title, the buyer writes one check directly to the bank for the payoff amount and another check to the seller for the remaining amount between the payoff and the sales price. In this case, the bank can usually mail the title to the buyer upon receiving the correct payoff amount.