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Car dealerships use a car purchase agreement, or car sale agreement, to finalize a sale. These contracts serve as a sales agreement between the buyer and seller. If you are purchasing a used vehicle from a private seller, the seller may ask you to sign a bill of sale, which is a very simplified form of car purchase agreement.
a purchase and sale agreement (PSA) a letter of intent (LOI). It is recommended to create a well-drafted contract which will determine each partyâs liabilities. The contract is intended to specify the rights and obligations of both parties, and cover the required steps for closing the transaction.