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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.
Instead your monthly payments on a hire purchase agreement are determined by the retail price of the vehicle, the size of the deposit and the length of the contract.In effect, the contract is between you and the lender (usually a bank or broker) but is normally arranged by the dealer.ire purchase is the traditional form of car finance and is a good way of paying for a car â a sizeable deposit followed by 12 to 48 monthly payments to pay of the rest of the retail price plus any interest. However, getting a good hire purchase agreement can be difficult â so you must be savvy.