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Publish Date - December 09, 2020

Author: Kristin Savage

Categories:   Tips & Insights For Car Buying    Buying & Selling Cars    Useful Automotive Information   

Buying a Car – 6 Steps to Write the Contract Properly

Buying a new vehicle is always a big deal. Even more so if you consider the fact that you will likely use your new car for several years before switching to another one. As such, you should pay close attention to the contract you sign with the seller of your new car.

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Buying a new vehicle is always a big deal. Even more so if you consider the fact that you will likely use your new car for several years before switching to another one. As such, you should pay close attention to the contract you sign with the seller of your new car.

To avoid any miscommunication or vagueness, it’s best to write the contract properly with both parties present during the process (legal parties are a bonus). Let’s examine how a proper car purchase contract should look like so that you don’t have unforeseen issues with your new vehicle.

1. Buyer, Seller & Purpose of the Contract

The first section of your contract is similar to other types of sales documents and should contain information about yourself and the seller. You can write this section as a paragraph of text or as bulleted points which will contain the following information:

  • Buyer information (name, address, contact info)
  • Seller information (name, address, contact info)
  • Purpose of the contract (this contract is in regards to the sales of the Peugeot model…)

It’s best to use writing software which you are comfortable with so that any grammar or formatting mistakes get fixed as you write. Writing services such as Trust My Paper, Evernote, and Wow Grade are readily available to help you edit and format your car purchase contract document. Double-check the seller’s and your own info before you continue to the following section.

2. Describe the Vehicle in Detail

The description of the car you are about to buy is arguably the most important part of the legal purchase document. Ask the seller for their ownership documents to avoid any mistakes or typos just in case. The information you should include in this part of the contract includes:

  • Make and model of the car
  • Year of manufacture
  • Body type (this can be a sedan, SUV, pickup, etc.)
  • Exterior and interior color
  • Vehicle’s VIN number and odometer reading
  • Any custom body work done on the car

The more information you include in the contact, the less likely you will be to have issues with registering and maintaining your new car. Ideally, you should visit a car mechanic to double-check the car’s written description before you’re satisfied with this part of the contract.

3. Write the Terms of Purchase

Given that you are likely to purchase a used car, you will probably come to some form of an agreement about the payment for said car. The deal between the seller and you should be described in detail to avoid confusion or legal ramifications down the line.

You should write the full amount agreed on, terms of payment, as well as the payment channel which you will use to deposit the amount. Depending on where you live, you will have to pay different amounts of tax for the purchased vehicle based on the terms of purchase. Make sure to check out myAutoloan about a financing plan suitable for your purchase plans quickly and easily. There, you will be able to access the tools which will help you throughout the car research and buying process.

4. Include a Disclosure Segment

A disclosure paragraph should be present in the car contract for the sake of both the seller and yourself. It should describe the condition in which the vehicle was delivered, as well as any mechanical or electronic issues the seller is aware of.

This will ensure that you get your money’s worth and that you don’t end up with a damaged car from the get-go. Again, it’s useful to visit a mechanic’s shop and have the car looked at before you commit to purchasing it. Use writing tools such as Top Essay Writing, Hemingway Editor, or Grab My Essay to write down the description of the car as a disclosure.

5. Vehicle Delivery Details

It’s also very likely that you will purchase a vehicle from out of state – thus, a delivery information paragraph should be included in the contract. The vehicle you are about to purchase can be damaged during transport from A to B, and the seller can refuse to compensate for it.

While unlikely, you should still cover your bases. Even if you intend to pick up the car yourself, that information should be outlined in the contract for transparency. Other forms of delivery include shipping by trucking companies or delivery by third-party drivers who specialize in car sales.

6. Dedicated Signing Spot

For legalities’ sake, the spot you and your seller sign should be clearly marked with “Signature” and a horizontal line at the bottom. Don’t simply type out both parties’ names and call it a day – this will not hold up in court.

Instead, ask your seller to mark the spot with their personal signature and then follow their lead by doing the same. To keep things as safe as possible, you can add a “Witness” signature spot of one-to-two individuals who have been present during the signing. Visit your local notary office to legalize the document and have it checked over for any inconsistencies or errors before shaking hands with the seller.


Car sales come down to trust and mutual understanding between seller and buyer. Pay very close attention to small details in the car, including its odometer, VIN, and previous ownership details. If you are not a car expert, grab a friend or a mechanic and repay them for their favor instead of buying a faulty car.

Once you settle for the vehicle you want, writing the contract of purchase should be done with the seller and, ideally, a legal party present. Sign the contract and visit a notary office to get the document approved so that you finally become the new legal owner of the car. Keep the contract in a spot you won’t lose or forget about it so that you can sell your car later down the line.