Car contract is binding and an agreement between the customer and the car dealer and is become valid once the car is delivered to the customer. A car contract is generally the last step of the car purchasing process. A car contract is basically a document that features all the important information related to the car that you as a buyer are purchasing and the dealer as a seller is selling. Each region has its own legislation and therefore it is necessary to read carefully the terms and conditions and all the important information regarding the car. Car contracts are the real documents and can be sued in court therefore before signing it try to understand all points and if you find anything confusing it is good to clear it before signing.
There is a preview of a sample Car Purchase Contract Template,
The Basics of the Car Contract
The car contract document is based on a number of information about the buyer, seller and car. The first section of the car contract usually contains information about buyer like name, address, designation and about the dealer as seller like the dealership name, address etc. The rest of the contract is based on the information about the car including manufacturer name, manufacturing year, model, VIN, color, interior color, any unique features of the car and actual mileage of the car. For a customer, it is important to read all the provided information carefully and should ensure that the information provided in the document is matched with the actual car you are going to purchase. In the car contract the date of selling, total amount to be paid and any kind of warranty.
Car financing clauses
In the car contract document there is one section specified for those who want to purchase a car on loan. In that section you have a couple of options including financing options by dealer. If you choose the financing dealership option you should read all the information carefully. The information will be related to the total loan amount, offered interest rate and the overall cost that the loan amount will charge you over time. Ensure that the written interest rate or APR should match the percentage of interest or APR that is orally offered to you. The section will help you to understand the payment schedule and overall cost.
Things that is important to the buyer
- The buyers should never sign a buyer’s order until the buyer is ready to purchase that car.
- Don’t sign any kind of buyer’s order if the dealer asks you to sign it before check out the car.
- Never sign blank papers.
- Read carefully each line of the contract to check that all the enlisted information are accurate like the down payment, car model, condition, color, selling price and trade in value.
- Don’t leave any empty or blank spaces before you sign the paper. It is best to cross areas that you think are not important to you.
- Ensure that the dealer or salesperson signed the contract documents as this will protect you from fraud.
- Ask for a copy of the fully completed and signed contract document.
Here is download link for this Car Purchase Contract Template,