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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.
The Purchase Agreement is an official legal document and usually includes items like: 1  The purchase price of the home. Make sure the contract specifically states that the price can not be changed. 2  Who is responsible for what closing costs. There are many closing costs involved in purchasing a home.