A car sale contract with payments is a legal document between the buyer and the seller of a car, in which the buyer agrees to pay the price in installments. The buyer does not have to pay the whole price upfront, and the installments can include interest or not. Create yours online with FormsPal, then download and print it for signing.
Last Updated: October 2026. This guide is reviewed and updated regularly to reflect current law. If you notice an error or outdated information, please contact us.
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A car sale agreement must be used when the buyer’s financial capacity is not enough to pay the full price of the car upfront in a private sale. If the buyer plans to pay the amount in installments, repayment agreements serve as legal documents that record the terms and conditions of the payment plans for private car sales. The buyer and seller should keep one copy each so that they can refer to it in case a legal issue arises later on.
Each part below answers one question about the sale: who is involved, what car is sold, and how it is paid for. A car sale contract can be modified as per the needs of the parties but the following details must be included:
Borrower
The agreement must provide the full name and address of the borrower or the buyer. The borrower is the person who is buying the automobile and the funds provided by Lender can only be used to purchase or refinance the automobile.
Lender
The agreement must also provide the name and address of the lender. Usually, in a private car sale, the seller himself is the lender.
Loan Amount
The agreement should also specify the principal amount. Usually, during private car sales, a part of the price or value of the car is paid upfront as a downpayment and the rest is considered as a loan given by the seller to the buyer.
Car Description
As this agreement solely for the purpose of purchasing or refinancing the car, the details of the car must also be mentioned in the agreement. These details may include the vehicle’s make, model, year, color, and vehicle identification number or VIN.
Interest Rate
The form should also mention the interest rate applicable to the principal amount. The parties can also choose to not include any interest on the principal amount.
Payment Schedule
The payment schedule shall include all the details regarding the time and manner in which the payment is to be made. This also includes the amount of the downpayment and the due date for the same. The payment schedule should also provide how and when the remaining amount should be paid by the buyer, for instance, monthly payments, weekly payments, or a discounted payoff.
Late Fees
Late fees are the fees applicable in the event of default by the buyer. If the parties choose to include late fees in the agreement, the same should be mentioned in the agreement.
Governing Law
The parties buyer and the seller also mention the state whose law will govern the agreement.
These steps follow the FormsPal template this page hands out, from the first line to the signatures. The template calls the buyer the Borrower and the seller the Lender, so those are the names used in the steps. Each step has a screenshot with sample entries so you can see where the answer goes.
The screenshots under each step show the FormsPal Car Sale Contract with Payments template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Section 1: Date, Borrower and Lender
After that, the name and address of the borrower or the buyer must be mentioned in the corresponding blank spaces provided before the term “Borrower.” The name and address of the lender should be mentioned in the corresponding blank spaces provided before the term “Lender.”
Enter the Effective Date, then the Borrower’s name and mailing address and the Lender’s name and mailing address in the blanks of the first paragraph.
Section 2: Vehicle make and model
Under Section 2 of the agreement, the borrowing party and the lending party must provide a description of the car that is being sold.
Write the vehicle’s Make and Model on the first two lines under Section 2.
Section 2: Vehicle year and color
Write the Year and Color of the vehicle on the next two lines.
Sections 2 and 3: VIN and loan amount
Write the VIN on the last line of Section 2. Under Section 3, enter the principal loan amount in dollars.
Section 4: Length of the Term
The buyer and seller must also stipulate the repayment terms for the agreement under Section 4 of the document.
Enter the length of the loan Term in months in the first blank of Section 4.
Section 4: Repayment options
Tick each option that applies and fill in its blanks. The options are a down payment with its due date, weekly payments, monthly payments with the day of the month, the balance due at the end of the Term, and a discounted payoff amount.
Section 5: Interest Rate
Tick the first box and enter the percent per annum, or tick the second box if the Loan does not accrue interest.
Section 6: How and where payments are made
Write how and where the Borrower pays the Lender on the lines under Section 6. The lines continue at the top of page 2.
Section 6: How and where payments are made, continued
Finish the payment details on the remaining lines at the top of page 2.
Section 7: Collateral Security
Tick one option. The choices are a first priority lien on the Vehicle, a second priority lien on the Vehicle, a lien on other assets of the Borrower (list them on the line), or unsecured.
Sections 11 and 13: Default rate and State
In the blank space provided under Section 13, mention the name of the state under the laws of which the agreement will be governed.
In Section 11, enter the percent the interest rate goes up if the Borrower defaults. In Section 13, write the state in the blank.
Section 16: Guarantor
Tick the first box and write the Guarantor’s name, or tick the second box if the Loan has no guarantor.
Section 17: Additional Terms and Conditions
Write any extra terms on the lines under Section 17, or leave the lines blank.
Lender and Borrower signatures
Once all the details have been finalized, the borrower and lender must sign the form.
The lender and borrower must put their signatures and print names under the corresponding blank spaces on the last page of the form.
The Lender and the Borrower each sign, date and print their name on their own lines at the bottom of page 3.
Guarantor signature, if any
If there is a guarantor, then he or she must put his or her signature and print name in the corresponding blank spaces at the end of the form.
If you ticked a Guarantor in Section 16, the Guarantor signs, dates and prints a name on the last block. Otherwise leave it blank.
After everyone signs, make a copy for each side and keep it with the car’s other paperwork.
FormsPal’s easy-to-use vehicle repayment agreement form can be downloaded for free.
A vehicle purchase agreement with payments is a legal document used in a private vehicle sale where the buyer is unable to pay the full price or value of the car upfront. When a sale takes place directly between the parties rather than through a dealership, it may not be possible for the buyer to pay off the car upfront. The parties can devise a payment plan by using a repayment agreement.
This loan agreement template will provide the details of the parties, the details of the automobile, the amount lent, the payment structure, and other details regarding the private car sale.
Using a car sale agreement is beneficial when a car sale takes place without involving a dealership. The legal documentation of such a sale is extremely important. Using a sale contract for a private sale contract formulates a legal relationship between the seller and the buyer and the buyer becomes legally bound to pay the amount to the seller.
Once the payment plan is recorded, the seller has legal recourse against the buyer in case of default. The agreement also serves as proof of the sale of the automobile for the DMV.
Gather these before you start. If the loan carries interest, decide the yearly percentage first.
Yes. The template lists weekly payments, monthly payments, the balance due at the end of the Term and a discounted payoff. Tick the options you and the other side agree on, then enter the amounts.
Yes. Section 16 has a box for the Guarantor’s name, and the last page has a signature block for the Guarantor. If there is no guarantor, tick the second box in Section 16.
Yes. Answer a few questions on FormsPal to build the contract, then save it and download it. To fill in or edit the downloaded PDF, use the FormsPal PDF editor.
General information, not legal or tax advice.
