Car Sale Agreement

What is a car sale agreement?

A car sale agreement, also known as an auto sales agreement, is a legally binding contract between individuals for the sale and purchase of different types of vehicles in Australia, including vans, trucks, cars, boats, etc. The present document defines main terms and conditions for the sale-purchase transactions, including:

• vehicle’s details;
• payment terms, including security deposit;
• parties’ mutual rights and obligations;
• delivery and transportation costs;
• seller’s warranties and representations.

Having a solid car sale agreement allows both parties to agree on the main conditions of the transaction and clarify both parties’ expectations, as well as to ensure compliance with Australian laws.

This vehicle sale agreement sample offers several benefits, including:

• full compliance with Australian consumer laws and general contract principles;
• drafting by real legal professionals, and never by AI;
• a fully editable template in both PDF and Word formats;
• a document written in clear, plain English.

Who is this car sale agreement template for?

This agreement of vehicle sale template is an ideal solution for anyone looking to sell or purchase different types of vehicles in Australia, including:

• private car sellers seeking a reliable car sale agreement to finalise the transaction;
• private buyers looking for a solid private car sale agreement to minimise legal risks;
• professional car dealerships selling used cars;
• businesses or companies wishing to sell their vehicles to third parties.

This document cannot be used, however, for car hire or long-term vehicle rental. If you need to sell the business, a Business Sale Agreement shall be used instead.

What should be included in this car sale agreement template?

There are no strict rules parties must follow when creating a car sale agreement template from scratch. However, including certain key elements is crucial to ensure the final document is complete and legally compliant.

Details of the Parties

Every auto sales agreement should include information about the parties involved – the seller and the buyer:

• full name and contact mailing address;
• ACN or ABN number (if either party is a business or company);
• contact phone number and email address.

Vehicle Information

Under this vehicle sale agreement, parties can sell not only cars but also trucks, vans, motorcycles, boats, trailers and other types of vehicles. Additionally, the final document should include details of the vehicle, such as:

• type of vehicle;
• vehicle’s VIN or HIN number;
• length (if the vehicle is a boat or a trailer);
• colour, make and model;
• odometer reading;
• main vehicle features (for example, scratches, spare wheel).

Including accurate information is vital for subsequent vehicle registration with the relevant state or territory transport departments in Australia.

Payment Terms

Another important element of a sale agreement of vehicle is the inclusion of all the payment terms. The document shall specify how much, when and how the payment will be made. The purchase price can be paid on the date of signing the agreement or at a later date. For example, the buyer may agree to pay the full purchase price upon completion of a technical inspection of the vehicle.

Alternatively, parties may agree to a security deposit. This is a part of the purchase price paid by the buyer on the date of signing to demonstrate their serious intention.

Finally, every car sale agreement sample should clearly outline the payment terms and payment method the buyer will use to pay for the car.

Delivery Terms

Once the technical inspection of the vehicle is completed, parties must decide how the vehicle shall be delivered to the buyer. Common options include:

• delivery to the buyer’s address;
• pick-up from the seller’s location;
• any other location upon the parties’ choice.

Warranties and Representations

Under the vehicle sale agreement, the seller shall provide key warranties without which the purchase cannot be finalised.

• Odometer warranty – the seller certifies that the odometer reading has not been changed, reversed or modified in any way.
• Ownership warranty – the seller should state that he or she is the sole legal and beneficial owner of the vehicle and that there are no restrictions preventing the seller from entering this agreement.
• Sold “as is” – this disclaimer confirms that no additional guarantees or warranties are provided regarding the technical condition of the vehicle or the vehicle’s fitness for a particular purpose.

Compliance with Australian Consumer Law

In most of the cases the final vehicle sale agreement shall comply with the basic principles of Australian consumer law. It means that the seller’s liability cannot be limited or excluded and is solely governed by the provisions of the Competition and Consumer Act. Accordingly, the seller provides the buyer with the additional consumer rights, including:

• right to request the full refund if the vehicle has a major failure;
• right to request replacement if the vehicle experiences unforeseeable loss or damage.

It is important to note that compliance with Australian consumer law is not mandatory in all cases. Once it is a private car sale agreement between two individuals, the provisions of Australian consumer law generally do not apply.

How to customise this car sale agreement with FasterDraft?

To get a fully customisable document template, follow the instructions given below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – sale agreement of vehicle PDF and word.
4. Make a payment.

Instant download of a document purchase is available immediately after the purchase.