Selling a used car to an individual usually results in a higher sales price than selling the vehicle to a dealership. If the buyer is a complete stranger, the sales transaction may create a level of uncertainty for both parties. A seller of a used car can alleviate much of the uncertainty surrounding a vehicle transaction by drafting an adequate bill of sale.

A bill of sale is a written document signed by both buyer and seller. In addition to specifying the terms of the transaction, the bill of sale may be required in order for the buyer to register the vehicle. Particular details about the vehicle being sold must be described in detail, so most of the bill of sale can be completed before you and your buyer actually sign the form.

A written sales contract typically begins by establishing the identities of both the buyer and seller. Enter your own information as the seller. Include space on the form to enter the name, address, and signature of the buyer. Include the sales price and the terms of payment. Along with the personal and financial information, your automobile must be specifically identified.

Vehicle description

Include the make and model of your vehicle, along with the model year. Enter the vehicle identification number for your automobile. Also referred to as a VIN, the vehicle identification number can usually be located on the vehicle title. Include a designated space on the bill of sale for the odometer reading. At the time of sale, enter the current odometer reading.

Vehicle condition

A major concern of a buyer of your used car is likely to be its future reliability. Verbally provide the buyer with your own personal assessment about the current condition of the vehicle. Even though dealerships often provide limited written warranties, individuals usually sell automobiles "as is."

By including a provision in the bill of sale that the vehicle is being sold as is, there is no warranty included with the sale. Any problem with the vehicle that is discovered in the future generally becomes the responsibility of the new owner. If your vehicle is sold "as is," the bill of sale should clearly state that there is no expressed or implied warranty.

Provide a copy of the bill of sale to the buyer, and keep the document for your own records. Some jurisdictions may require a notary public to witness an automobile bill of sale. Contact a general practice attorney like Herbert Law Firm LLC for more information about vehicle sales contracts.