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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.
In most cases, your state will require a sales contract when selling your used car. The contract ensures that you and the buyer agree on all terms of the sale, eliminating any potential disagreements should any unexpected mechanical surprises occur down the road. Add the buyerâs name and address. 2  Include the vehicleâs sales price. 3  Most used car sales between private parties do not include a warranty. 4  This is commonly referred to as an âas isâ purchase, meaning the buyer is purchasing the car âas is.â You should spell this out by stating, âThe car is sold as is.â.