Auto Sales Agreement for the United States

Auto Sales Agreement Template for United States

An Auto Sales Agreement is a legally binding document used in the United States to formalize the sale and purchase of a motor vehicle. This agreement outlines the terms and conditions of the sale, including vehicle details, purchase price, payment terms, warranties, and representations made by both parties. It ensures compliance with federal and state regulations, including the FTC Used Car Rule and state-specific vehicle sales laws.

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What is a Auto Sales Agreement?

The Auto Sales Agreement serves as the primary legal document for vehicle transactions in the United States. This contract is essential for both private sales and dealership transactions, protecting the interests of both buyers and sellers. It includes critical information such as vehicle identification, price, payment terms, warranties, and state-specific disclosures. The agreement ensures compliance with various federal regulations including the FTC Used Car Rule, Truth in Lending Act, and state-specific vehicle sales laws. It's particularly important for establishing clear title transfer and documenting the vehicle's condition at the time of sale.

What sections should be included in a Auto Sales Agreement?

1. Parties: Identifies the seller and buyer with full legal names and addresses

2. Background: Brief context of the sale transaction

3. Definitions: Key terms used throughout the agreement

4. Vehicle Description: Detailed information about the vehicle including VIN, make, model, year, color

5. Purchase Price and Payment: Complete details of the purchase price and payment terms

6. Transfer of Title: Terms regarding the transfer of vehicle ownership

7. Representations and Warranties: Statements about the condition and ownership of the vehicle

8. Signatures: Execution block for all parties

What sections are optional to include in a Auto Sales Agreement?

1. Financing Terms: Details of financing arrangements when seller is providing financing

2. Trade-In Details: Information about any vehicle being traded in as part of the transaction

3. Extended Warranty: Terms of any extended warranty being purchased with the vehicle

4. State-Specific Disclosures: Additional disclosures required by specific state laws

What schedules should be included in a Auto Sales Agreement?

1. Vehicle Condition Report: Detailed inspection report of vehicle condition

2. Warranty Documentation: Copies of any warranty agreements

3. Vehicle History Report: CarFax or similar vehicle history documentation

4. Odometer Disclosure Statement: Federal required mileage disclosure

5. Buyers Guide: FTC required disclosure for used vehicles

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

FTC Used Car Rule: Federal regulation requiring dealers to display a Buyers Guide with specific information about the vehicle's warranty and other important information

Truth in Lending Act (TILA): Federal law requiring disclosure of credit terms and standardized information about borrowing costs in vehicle financing

Consumer Leasing Act: Federal law governing disclosure requirements for consumer vehicle leases

Magnuson-Moss Warranty Act: Federal law governing warranties on consumer products, including vehicles, requiring clear disclosure of warranty terms

Federal Odometer Act: Requires accurate disclosure of vehicle mileage during sale and prohibits odometer tampering

Clean Air Act: Federal law establishing emissions standards that vehicles must meet

State Vehicle Sales Laws: State-specific regulations governing vehicle sales, varying by jurisdiction

State Lemon Laws: State-specific consumer protection laws for defective vehicles that don't meet quality and performance standards

State Consumer Protection Acts: State laws protecting consumers from deceptive practices in vehicle sales

UCC Article 2: Uniform Commercial Code article governing the sale of goods, including vehicles

UCC Article 9: Uniform Commercial Code article governing secured transactions, including vehicle financing

DMV Regulations: State-specific Department of Motor Vehicles rules governing vehicle registration, titling, and transfers

State Warranty Requirements: State-specific laws governing vehicle warranties and required disclosures

Environmental Regulations: State and federal environmental requirements for vehicle sales and operations

Safety Standards Compliance: Federal and state safety requirements that vehicles must meet for legal sale

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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