There are some important things that car buyers need to do before purchasing a vehicle. Buyers should check their state’s laws regarding bills of sale for cars. They should ask sellers about any outstanding liens on the vehicle. Buyers who purchase vehicles, offline or online, should make sure that the seller provides them with a bill of sale for the vehicle. Sellers should provide buyers with a copy of the title for the vehicle as well.
A bill of sale for car is a document that transfers the ownership of a vehicle from seller to buyer. In some states, a bill of sale for car may not be required if the parties have agreed upon the terms of the transaction. A bill of sale for car should always be signed by both parties. If the seller does not sign the car bill of sale in Alabama, then the buyer may be entitled to damages.
Why is a Car Bill of Sale Important?
While buying/selling cars, people often do not realize how much their vehicle information will affect them. Cars carry a lot of personal history that may play a role in your decision about who to buy your car from. There are some important things you should know before purchasing a car, such as:
- VIN or Vehicle Identification Number
- Number of miles covered, as revealed by an odometer reading
- Whether the car has undergone some major repairs
- Whether it is being sold in an “As-is” form
- Whether it has some financial encumbrances
You can get most of this information from your car bill of sale document. Make sure that you have copies of your vehicle bill of sale stored safely. This document will help you to prove the ownership of your car if you need to show proof while selling it down the road. If your car does get damaged, this document can also help you determine which repairs are covered under your insurance.
If you are a car seller and plan to sell your vehicle sometime soon, it is important for you to draft a car bill of sale document – which you should hand over to your buyer at the time of selling your car. You can easily get a free template bill of sale for car online, which can be downloaded and customized as needed.
Importance of Car Bill of Sale for Buyers
While buying a car, you need to get a title as well as a bill of sale. These documents serve as proof of ownership. You could think of these as insurance. If you buy a car without getting such kinds of documents, you have no proof of ownership.
This is similar to how you would want to document the purchase of a home. While buying a house, you need to know who owns the property first before any contracts are signed. Otherwise, you cannot provide proof of ownership and secure financing.
Many states require that if you drive a vehicle across state lines, you must show proof of insurance. In the same way, you need proof of ownership of the vehicle as well as proof of the car being free of any encumbrance. All over the world, people use titles and bill of sale documents.