According to research conducted by IbisWorld, the current market value of the car industry sums to $99 billion. Although the current threat of this COVID-19 pandemic is a tight bottleneck for this industry, car purchase transactions are still possible shortly because of the demands of social distancing. And that is why purchase forms, such as a used car bill of sale form, will remain relevant over the next course of years. Read More
Say, for example, you have a dream car in mind from a luxury brand. But, your current lifestyle and income do not allow you to purchase that car yet, but your current situation also demands you to buy a car for easier transportation. The possible solution to this problem is to buy a used or as-is vehicle, which is cheap enough not to break your bank and can do the job. You might even have extra cash to keep aside to buy that dream car. When you decide to purchase the car, you need to fill out several forms, and one of them is the bill of sale form.
How Do You Create a Used Car Bill of Sale Form?
Filling up a used car or any vehicle bill of sale form is easy because it requires the basic details of the sale. These details are relatively easy to supply. What both parties need to make sure is to double-check the accuracy of these details.
1. Recognize the Parties
The form starts with asking the details of the parties that are involved in the sale. Expectedly, it asks for the legal names of both. Legal names are especially important when an involved party is a business entity. The form must reflect the registered name of the company. Aside from the names, the mailing address is also necessary.
2. Indicate Purchase Price and Necessary Arrangements
The next piece of information that needs to be disclosed is the total purchase price of the item. It is also best to put the indicated price which already includes taxes and other fees. You also need to state subsequent payment arrangements. These additional terms can consist of conditions regarding the security deposit and on who will shoulder the payment of particular fees.
3. Provide an Accurate Description
Similar to the motor vehicle bill of sale, a used car bill of sale requires the same set of information. This section of the form must reflect the manufacturer of the car, model, body type, manufacturing year, and color. The 17-character Vehicle Identification Number (VIN) is also highly necessary. Distinct modifications done to the vehicle can also be noted to create a better image of the property. What matters most in the description is the odometer reading, since these cars are already used.
4. Include Additional Terms and Conditions
If both parties came up with supplementary conditions that will make the transaction more seamless, then it is essential to put these agreements into writing by including it in the form. It can be arrangements regarding the preferred payment method or about the period granted to the buyer to provide the payment. All of these additional arrangements must be in writing so that either party can legally demand its completion if not acted on.
5. Sign the Odometer Disclosure Statement
Apart from the signatories, the latter part of a used car bill of sale is an odometer disclosure statement. This statement is a short declaration that the odometer reading indicated in the form above is true according to the knowledge of the seller. The inclusion of this statement is necessary for complying with the requirement of state and federal laws. Moreover, it acknowledges that indicating a false reading will result in fines or imprisonment. Also, the last part of this statement says that the buyer knows that they are buying the car in an as-is condition and that the seller is no longer liable for the car.
What are the reasons for opting to buy a used car than a brand new car?
There are several reasons why you should opt for a used car than to buy a new one. Here are some of the main reasons: (1) minimal depreciation; (2) lesser insurance cost; (3) reduced registration fees; and (4) more cost-efficient.
What are the ways to sell a used car effectively?
There are several ways on how to sell a used car effectively. These methods include selling it privately, selling through dealerships, selling it to CarMax, use AutoTrader, have the vehicle picked up, or trade the car in.
What does an “as-is” condition mean?
A general bill of sale form states that the item is sold in an “as-is” condition. This condition means that the car was sold and bought at its current condition. Therefore, the buyer accepts the inherent faults of the car. This “as-is” condition also frees the seller from the current liabilities of the vehicle.
When does one use a bill of sale form?
Apart from using it to record the purchase of the used vehicle, you can also use the form when trading vehicles, purchasing an item through a private sale, and when buying any high-value property.
Can I use a bill of sale form in acquiring services?
It is not ideal to use a fillable bill of sale form when paying for services. Bill of sale forms is limited to items or properties wherein the ownership is transferable from one party to another.
Cars are no longer luxury properties, but they have become essential in making daily activities easier. Places seem to be nearer because of the convenience that comes with having a car. This is one of the reasons why people are opting to buy second-hand cars over brand new ones because they prioritize their convenience rather than the brand. As its demand will continually increase, the use of used car bill of sale forms will continue to remain relevant and necessary.