The car bill of sale form is used to transfer the ownership of a car from a seller to a buyer. The pros and cons of writing an auto bill of sale versus buying a state specific, professionally drafted one online for less than ten dollars. As most written bill of sale do not include an ‘Odometer Disclosure’ form as required by federal law, this creates headaches down the line for both the seller and buyer as discussed later on.

How to write a bill of sale for a used car and pitfalls to avoid

This applies to a used car that is sold ‘as is’ without warranty.

1. First is to include that State and County where the car is being sold.
2. Second is to include the seller’s and buyer’s names and addresses.
3. The sale and transfer clause should include the amount both written and numerical and the car details as follows: make, model, body type, year, and vehicle identification no. (VIN)
4. A warranty of ownership clause
5. A disclaimer of other warranties clause
6. Additional terms of sale if any.
7. Names and signature of both parties.
8. Date of the agreement.

What are the pitfalls and how to avoid them?

Written bill of sale documents and free ones downloaded online almost always contain errors and are incomplete. Further they almost never include the ‘Odometer Disclosure’ form as required by federal law. These colossal mistakes usually result in the following common scenarios:

1. The buyer alters the odometer reading sometime in the future and sells the car to obtain a better price. The new buyer discovers this and it is now impossible to ascertain if this illegal change was done by the original seller or the initial buyer. Rolling back the odometer is a federal crime.
2. The buyer is not satisfied with the car or encounter problems with it in the future. Failure to include a proper ‘disclaimer of other warranties clause’ may have the seller liable in a court of law.

Outlined above are common scenarios only as it is impossible to include every scenario.

How to avoid the pitfalls?

These pitfalls can be easily avoided by obtaining a proper, professionally drafted auto bill of sale for less than ten dollars that also includes the ‘Odometer Disclosure’ form as required by federal law. Spending a few bucks now would save both the seller and buyer money and headache in the future.