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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 or Contract of Sale is an offer by the buyer to purchase the home for a certain price which the seller accepts. The buyer and seller may negotiate on the price, and once a final price is decided on then the Purchase Agreement is signed and the earnest money is put down as a deposit.