Vehicle sale agreement

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Document overview

This vehicle sale agreement can be used for any recording a transfer of ownership of second hand road vehicle including a car, a motorbike, a van, a lorry or a truck.

It is suitable for a private sale.

Primarily the agreement protects the seller against claims at a later date that the seller failed to inform the buyer about the state of the vehicle at the time of purchase.

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  • England & Wales
  • Scotland
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  • Length:7 pages (290 words)
  • Available in:
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About this vehicle sales agreement

When you sell a second hand car, motorbike or other vehicle through private sales it is critical that you agree the terms of the sale and purchase with the buyer in writing.

Documenting the agreement and the state of the used car prevents the buyer from later claiming that you misled them as to the condition and demanding his money back.

If you are the buyer, then a car sale agreement gives you peace of mind that you know what you are buying.

The law relating to selling your vehicle

In any private sale, you can agree the terms between yourself and the other party. The law is common law.

As a seller, you could advertise your car with a poster in the window with 'sold as seen, no warranty given or implied' written on it and accept cash in hand from the first person who wants to puchase it. The agreement would be verbal and legally binding.

The problem with this sort of arrangement is that there is no record of what was agreed. If the buyer came back (perhaps with a genuine complaint) six months later, they could argue that important information was withheld at sale (or not) and demand money back.

The AA recommends that you use a written agreement and goes as far as producing a free sample download. However, the AA version (and many of the free versions on the Internet), in our opinion, doesn’t go far enough to document the car or the legal agreement.

The Net Lawman version, while not free, is far more comprehensive and thus protects both parties far more greatly.

This document is more than a simple vehicle bill of sale. The warranties (statements of condition) provide protection for both the seller and the new legal owner against claims relating to the condition.

Sale by professional dealers

In a sale of a motor vehicle by a professional dealer to a private individual, consumer protection law gives the purchaser certain rights that are not covered in this agreement. An individual might also buy a used car with credit, provision for which is not included in this contract.

However, if the seller and the buyer are both businesses (one being a dealer selling to another business) or both private individuals, this document is suitable.

How to use this agreement

To use this agreement, complete as many details in advance as possible (the template is in Microsoft Word format) and then print two copies, one for you and one for the other of you.

Complete the remainder of the form in front of the buyer or seller. Both parties should sign both copies and keep them as proof of sale.

The payment method is likely to be cash, but it could also be by bank transfer, money order or Internet payment. What is important is that title to the vehicle (legal ownership) transfers at the same time as full payment.

Contract contents

The document covers:

  • details of the buyer and the seller
  • details of the vehicle, including the vehicle identification number (VIN), make and model, body type, registration number and the odometer reading
  • seller’s warranties
  • transfer of ownership
  • DVLA owner registration arrangements
  • risk
Sample vehicle sale agreementSample page from the vehicle sale agreement

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Recent reviews

Straight To The Point
27 September 2019
The agreement document that I purchased was real simple to understand, straight to the point and user friendly. I will definitely be using this service again and I recommend this service to anyone who is looking for easy to understand legal documents.
Tim Thomson
Review of the Australian version
Great Service
23 November 2018
Excellent plain English document, with adequate detail to give confidence and clarity in completing the transaction. Being in Word format, I was able to make a few changes with ease.
Dianne Moses
Review of the Australian version
Excellent value contract
22 November 2017
The draft contract provided an excellent basis for the agreement I wanted to formalise with the purchaser of a vehicle I recently sold. Although I had to make a few amendments to it, these were relatively minor. All in all I found the process very easy and efficient to say nothing of the cost I was able to save in having a solicitor draft it from scratch. I can't honestly think of anything you could do to improve your service.
Ian Scrutton
Review of the Australian version
Read all 23 reviews

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