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A car purchase agreement is a written contract for selling a vehicle. It sets the price, the down payment, the vehicle details and the transfer date before ownership changes hands. Buyers and sellers use one, especially when payment or pickup comes after the handshake.
Download the free FormsPal vehicle purchase agreement template below or create a custom one online, then follow the steps on this page to fill it out and sign it.
A car purchase agreement, also called a car purchase and sale agreement or a car buying contract, is a written deal between a buyer and a seller that sets the terms of a vehicle sale before the vehicle changes hands.
The agreement lists the sale price, how and when the buyer pays, and the date of the transfer. Both sides sign it, so each one knows what the other has agreed to do. The handover itself comes on the transfer date, when the buyer pays and the seller hands over the signed certificate of title, the keys and a bill of sale.
The same document goes by several names: vehicle purchase agreement, auto purchase contract, automobile sales agreement and vehicle sale agreement. A dealership's version is often called a buyer's order. For homes, land and other goods, see our other purchase agreement templates.
Use a car purchase and sale agreement when the buyer and the seller agree on a deal today but the payment, the pickup or the paperwork comes later, so both sides hold the same terms in writing until the transfer date.
Typical situations:
A signed total also settles later questions about money. If a new charge shows up at closing, the buyer has the signed price in writing to compare it with.
For a longer payment plan, write the down payment, each later payment and its due date into the agreement, or attach a payment schedule that both sides sign.
The core terms of the FormsPal template, the parties, the vehicle, the price and the transfer date, fit a dealer purchase agreement and a private sale alike.
At a dealership, the dealer often brings its own preprinted form, a buyer's order or dealer purchase agreement. Read every line of it, compare the total with the price you negotiated, and ask what each added charge pays for. In a private sale, the buyer and the seller fill in the template together and each keeps a signed copy.
A car purchase agreement comes before the sale and sets its terms, while a bill of sale comes after the sale and shows that the vehicle changed hands from the seller to the buyer.
| Point | Car purchase agreement | Bill of sale |
|---|---|---|
| When it is signed | Before the sale, once the deal is agreed | On the transfer date, when the sale closes |
| What it does | Commits both sides to buy and sell on set terms | Shows that the vehicle changed hands |
| What it lists | Price, down payment, payment plan, dealer charges, transfer date, vehicle details | Price paid, date of sale, vehicle details, both parties |
| Who keeps it | Buyer and seller, each with a signed copy | Buyer and seller, with the vehicle's papers |
Many people keep both with the other papers for the vehicle. For the closing document itself, see our bill of sale templates.
Buying a car with a purchase agreement takes a few steps: set a budget, pick the car, check it, test drive it, agree on the price and the extra charges, and only then write the terms into the agreement.
Decide how much money you can put toward the car before you visit a dealer or a private seller, counting the down payment and any later payments. A clear budget keeps you from getting hooked on the sales tactics at the dealership.
Compare several cars from local dealer websites and private listings before you choose one, so the first car you see does not set the price for you. Note the asking price, the mileage and the condition of each.
Inspect the car in person and treat anything a salesperson says as a claim until it appears in writing in the agreement. Pay attention to the following things in your motor vehicle:
Ask for the service papers and the vehicle history, and compare the VIN on the car with the VIN on those papers.
Drive the car yourself before you agree on a price, and note anything that feels or sounds wrong to you on the road.
Agree on the full price first, then ask the dealer to list every extra charge, the sales tax and any trade-in value, so the total on the agreement holds no surprises. If you plan to pay over time, agree on the down payment and each later payment before anything goes on paper.
Once the price is agreed, write every term into the agreement: the parties, the vehicle, the total, the payment plan, the transfer date and the known defects. Check it for typing mistakes and wrong figures before anyone signs.
A car buying contract names the buyer and the seller, describes the vehicle down to its VIN and odometer reading, and sets the total price, the payment terms and the closing date.
The FormsPal template has blanks for the parties, the vehicle, the price, the down payment, the transfer date and the disclosures. Add any other term, such as a trade-in or a payment schedule, on extra lines or in an addendum that both sides sign.
To fill out the car purchase agreement template, enter the parties and the date, describe the vehicle, write the price and the down payment, set the transfer date, list the disclosures and sign.
The free template fits most car purchases from a dealer or a private seller. A deal with unusual terms may need extra clauses on added lines.
The screenshots under each step show the FormsPal Vehicle Purchase Agreement template filled with sample entries in blue, so you can see where each answer goes. The names, addresses, dates and amounts are examples only.
Sign the car purchase agreement only after both sides have read every line, checked the total against the agreed price, and matched the VIN and the odometer reading against the car itself.
For the new title and registration, ask the local DMV which papers it wants. Bring the signed agreement, the bill of sale and the signed certificate of title with you.
A car purchase agreement is a contract that the buyer and the seller sign, and it sets out what each of them has agreed to do on the transfer date.
Yes, a buyer and a seller can write up their own agreement for a car, or start from a free template like this one and edit it to fit the deal. A simple agreement names both parties, describes the vehicle, gives the price and the payment terms, sets the transfer date and ends with both signatures.
The FormsPal vehicle purchase agreement template is free to download, and you can fill it in online or print it and fill it in by hand. Building a custom agreement with the online builder starts from the same blanks.
Yes, a car purchase agreement can include a payment plan: write the down payment, each later payment and its due date into the agreement. The FormsPal template has a blank for the down payment, so add the rest of the schedule on extra lines or in an addendum that both sides sign.
A vehicle purchase letter is an informal letter in which a buyer offers to buy a car or confirms a deal, while a purchase agreement sets out the full terms and carries both signatures. For a sale with a price, a payment plan and a transfer date, use the agreement.
A common mistake is signing before the car has been checked and before every charge is written into the agreement. Check the car, take a test drive and agree on the full total first, as the buying steps above show.
Yes. You can fill in the downloaded PDF template with an online PDF editor, or create the agreement online and print it afterwards. A printed copy works well when both sides sign in person.
General information, not legal or tax advice.
