Facts about the Private Car Sale Installment Agreement template
- 1 Facts about the Private Car Sale Installment Agreement template
- 2 What Is a Private Car Sale Installment Agreement PDF Form Used For?
- 3 Who Would Use a Private Car Sale Installment Agreement PDF Form?
- 4 When Should You Use a Private Car Sale Installment Agreement PDF Form?
- 5 What Consequences Are There to Not Using a Private Car Sale Installment Agreement?
- 6 How to Fill Out a Private Car Sale Installment Agreement PDF Form
- 7 Quick Questions
What Is a Private Car Sale Installment Agreement PDF Form Used For?
When a vehicle is sold between two private parties, the buyer can’t always pay the full asking price. A car installment agreement helps to mitigate this, which makes car shopping more accessible to people of different incomes. With a purchase agreement, the buyer would pay the car off over a period of time. There would be a predetermined time between installments, oftentimes one month, other times there is a monthly payment until the buyer completes the purchase. This way, the buyer does not depend on a short term loan if they have a bad credit score or do not have access to a credit card for a cash advance for credit reasons. On occasions will ask the buyer for a credit report to have some type of security of the payments.
This retail installment contract is the legal document explaining the payment plan. It includes the selling price of the car, the negotiated down payment, and the installment payments. With the installment plan, there will be a projected end date at which the car is fully paid off. If the buyer hasn’t paid the balance in time, they might be subject to late fees and higher interest rates. It’s not the exact same thing as a loan agreement but more like a layaway.
Who Would Use a Private Car Sale Installment Agreement PDF Form?
An installment agreement would be struck between any private parties selling cars. It’s important to have this documentation written down, especially when there’s no dealership involved. Documentation is necessary not only for your records, but also for legal purposes. Your installment plan might be filed with the DMV when you complete the transfer of the car title.
The agreement should be negotiated between the buyer and the seller. Both parties need to understand the terms and be on board. You shouldn’t sign an installment agreement until you’re sure you understand the terms. Many people have an attorney double-check the terms, whether they’re buying or selling the car. This helps to ensure that the contract is legally binding and financially safe.
When Should You Use a Private Car Sale Installment Agreement PDF Form?
Any time a car is sold between two parties rather than through a dealership, a car sale installment agreement should be used. The only time this isn’t true is when a buyer can pay the full sale price upfront. If the buyer intends to pay overtime, the payment plan needs to be denoted on paper. Both the buyer and the seller should keep a copy of the payment plan for their financial and legal records.
The seller should make sure that they see proof of the buyer’s address along with identification. They should make copies of this to ensure the buyer doesn’t “disappear” after the first payment.
After the terms have been negotiated and double-checked by an attorney, the seller and buyer should both go to their local notary’s office. Both parties will then sign the contract, and it will be notarized. At this point, the seller should give a copy of the plan to the buyer and prepare any vehicle sale documents the state requires.
What Consequences Are There to Not Using a Private Car Sale Installment Agreement?
There are a number of problems that can occur if you don’t use an installment agreement:
- If you failed to get the buyer’s identification and address, they might disappear following their initial payment and fail to pay off the vehicle in full
- If you don’t have a payment plan written, you have very little legal recourse should the buyer fail to make payments
- If you’re the buyer and don’t have a payment plan, you have little recourse if the seller demands the full sum up front
- An installment agreement outlines late fees and other potential consequences for missed payments, which won’t apply otherwise
- The DMV requires proof that the vehicle has been sold
How to Fill Out a Private Car Sale Installment Agreement PDF Form
- First, gather information about the buyer and the seller. The agreement should show the full name, Social Security number, and physical address of both parties.
- Describe the vehicle being sold, including its make and model.
- Write the purchase price.
- Record the initial down payment.
- Write down the amount to be paid in each installment, along with the time period between installments.
- Write the date at which the balance should be fully paid.
- Record the amount of time that can pass before late fees are issued. Then, record the initial late fee along with information about its compounding should the balance continue being unpaid.
- Have an attorney double-check the contract to make sure there are no legal loopholes or mistakes.
- Get the date of the sale, along with the signatures of the seller and the buyer.
- Have the form notarized at a local notary’s office.
- Procure copies for both the buyer and seller to keep for their records.
After the seller has received a signature and notarization of their installment agreement, they should prepare the rest of the vehicle sale documents. These include the transfer of title and registration papers. Depending on the state, they might need to file a bill of sale. Bills of sale will use the same information recorded on the installment plan private-car-sale-installment-agreement