How To Write Car Receipt And Vehicle Payment Agreement After Sales

When buying or selling a car, a car receipt and vehicle payment agreement form is a valid written documents to have. This is particularly important to avoid issues of car ownership that may come up in the future.

Usually, car sales involve the transfer of ownership, hence having a car receipt or a vehicle payment agreement gives valid proof that you (as the buyer) paid for a particular car. A car receipt and vehicle payment agreement can also be called a Bill of Sale. It is a legal document that outlines the terms of the car purchase and serves as proof that the vehicle was sold. In other words, it is a document that validates that the car owner assigns or transfers their rights or interest in the vehicle to a buyer.

When writing a car receipt and vehicle payment agreement form, you don’t necessarily need a lawyer, it’s a form that you as the buyer can create by yourself. This article shows in detail how to write your own car receipt and vehicle payment agreement form after-sales of a car.

But first, why is writing a car receipt and vehicle payment agreement important?

Importance Of Writing A Car Receipt And Vehicle Payment Agreement

1. It allows both seller and buyer to be aware of the legal terms of the car sales/purchase they are about to get into.
2. It serves as the buyer’s proof of ownership of the car.
3. The car receipt and vehicle payment agreement form clearly states the terms of purchase and can be used as evidence against any misunderstanding in the future.
4. On the seller’s side, the document shows the agreed-upon price (especially if the buyer has not paid in full), the specific model and the year of the car.

How To Write A Car Receipt Or A Vehicle Payment Agreement Form (Aka Bill Of Sale)

Find Out What Your State Requires

Depending on where you are located, different states have formats of what should be included in a vehicle payment agreement. Some states may even have a standard copy of the document already, so in instances like this, all you need to do is get the ready-made document and use it. However, if there is no required format in your state, you can freely go ahead and create one.

Agree On A Price

Before you start preparing a car receipt and vehicle agreement form, it’s important both buyer and seller agree on a price for the car. This makes you know you can go ahead to document the details of the purchase.

Select A Good Payment Method

Both buyer and seller need to agree on a safe and convenient payment method so that the deal can be successful. It is proper that the car seller gets a receipt from the buyer confirming that the money has been transferred and received. As the buyer, you should also keep a bank teller as private evidence that you paid the money.

Get Your Identity Details

A vehicle payment agreement form requires the identity details of both buyer and seller. So, in order to fill out the form, identity details such as full names, addresses, phone numbers, next of kin, means of identification, etc should be known and duly recorded on the form.

Car Information Details

The car details are also required in a car receipt and vehicle payment agreement form. The car details included in the form must be accurate and up-to-date. The following car details should be included in a vehicle agreement form;

• car’s official name
• Custom information (if available)
• Allocation of Registration Number
• Proof of ownership
• The receipt of purchase,
• Your vehicle registration certificate
• The car brand, model, designs and year of the car
• Odometer Reading
• Insurance Clearance (if available)
• ECMR (Enhanced Central Motor Registry
• The vehicle identification number (VIN). You can find this in the car manual, the door jamb near the steering wheel or under the hood.

Writing Format For Car Receipt And Vehicle Agreement Form

If your state doesn’t have any standard format to use, you can use this format when writing a car receipt and vehicle agreement form.

• The heading of the document should be “Bill of – Sale” or ‘Vehicle Agreement Form’ located at the top and next to it should be the date.
• Next should be an introduction of the seller and the buyer. e.g “I, (the seller’s name), of (seller’s address) declare that I am the legal and lawful owner of the (car name) and have the authority to sell it.
• Next should be ALL the car information.
• After this, introduce the buyer e.g. I, (seller’s name), do hereby sell, convey and transfer the above-described item for the price of (input the price) to (input buyer’s name and address).
• Next, you should state any information and warranty if available.
• State any oaths and any legal statement if available.
• Provide a space for your signature/date, the buyer’s signature/date and the third party’s a signature/date.

PS: Use a computer when doing this and print it out. The copy should be clean and neat.

Let The Buyer And A Witness Review The Form

While a lawyer is not necessarily needed to be available when writing a car receipt and vehicle purchase agreement, it’s wise to have a witness available. Once the seller has printed the form, both the buyer and a witness should have a look at it, and give their comments.

Signature

Once both parties are satisfied, then they can go ahead to append their signatures. The witness can also append a signature. After this, the seller can confidently call the car his/her property.

CONCLUSION

Having a copy of the car receipt and vehicle agreement form is important to complete the overall purchase of a car. Carmart.africa hopes this article has given you the necessary knowledge and boosts your confidence about writing your own car receipt and Vehicle agreement form.