Used Car Bill of Sale

Our free used car bill of sale can be used to formalize the sale of a privately owned vehicle.

The free bill of sale on this page is an installment sale and security agreement.

car with sign for sale by owner

The following free legal forms are also available:

  • Car Sales Agreement - for use where a single payment will be made by the buyer.
  • Lien Release - To be issued to the buyer upon full and final settlement.
  • Odometer Disclosure Statement - to attach to your free car sales agreement.
  • Auto Power of Attorney - where an agent is acting on your behalf.

For links to the above legal documents and additional guidelines when buying or selling a car, please refer to our main Automobile Bill of Sale page.

Note: It is also important to refer to the guidelines and additional information on recording a lien, permissible interest rates and defaulting on an agreement on our Bill of Sale Forms page before compiling your used car bill of sale.

Copyright Notice

Used Car Bill of Sale:


    1.1    THE SELLER:

           First Name(s):

            Last Name / Surname:

            Identity / Social Security or Other number (Specify):

            Driver's License Number:

            Physical Address:


    1.2    THE BUYER:

            First Name(s):

            Last Name / Surname:

            Identity / Social Security or Other number (Specify):

            Driver's License Number:

            Physical Address:


The parties choose the above stated addresses as their physical addresses at which legal proceedings may be instituted.


    2.1    Type of Vehicle:

    2.2    Make and Color:

    2.3    Model:

    2.4    Year:

    2.5    Registration Number:

    2.6    Engine Number:

    2.7    Vehicle Identification Number (VIN):

    2.8    Odometer Reading:


Purchase Price: $__________ (__________________________dollars)

Less Deposit Paid: $_________ (__________________________dollars)

Outstanding Balance: $_______ (__________________________dollars)

Interest Charges: Interest shall accrue at the rate of _____percent (_____%) per year on any unpaid balance.

Late Payment Fees: If payment is not made within _____days as stipulated in the payment terms the Buyer shall pay an additional late payment fee in the amount of $_______ (________________dollars).

The Buyer will pay to the Seller ___________payments of $________ (_____________________dollars) each at uninterrupted monthly intervals on the ________day of each month, starting on the ___________day of ___________________20____ until the Outstanding Balance and accrued interest is paid in full. All payments shall first be applied to outstanding late payment fees, then to accrued interest and thereafter to the Outstanding Balance.


    4.1    The Seller guarantees that he/she is the true and lawful owner of the above described vehicle and that it is free of all encumbrances and any and all legal claims.


    5.1    The Seller warrants that at the date of signature of this used car bill of sale and security agreement there are no licensing fees or fines or other penalties outstanding against the registration of the vehicle sold in terms of this agreement.


    6.1    The Seller or his/her agent gives no warranty or guarantee other than those specified in 4.1 and 5.1


    7.1    The vehicle is sold "As-Is" and the Seller shall not be liable for any defects, patent, latent or otherwise.

    7.2    The Buyer admits to having inspected the vehicle to his/her satisfaction and that no guarantees or warranties of any nature were expressed or implied by the Seller or his/her agent regarding its condition or quality.


    8.1    A lien shall be recorded on the title of the vehicle and the Seller shall retain a perfected security interest in the vehicle until all installment payments and all other amounts under this agreement have been paid in full.

    8.2    The Buyer shall effect at his/her cost the filing of a financing statement at the relevant public offices within 5 (five) days of signing this agreement and shall furnish proof of such filing to the Seller.


    9.1    The Seller shall issue a lien release within 5 (five) days of receiving full and final payment of all monies due under this agreement, where after the onus shall be on the Buyer to file the lien release with the relevant public offices.

    9.2    The Buyer shall be liable for all costs relating to the registration of the vehicle into his/her name and all costs relating to the Roadworthy Certificate.


    10.1    The Risk passes to the Buyer once the Buyer or his/her agent receives the keys to the vehicle or takes possession of the vehicle.

    10.2    Loss of or damage to the vehicle will not release the Buyer from his/her obligations under the terms of this agreement.

    10.3    The Buyer shall insure the vehicle against all risks with a recognized insurance company acceptable to the Seller at his/her cost. The Buyer shall furnish proof of such an insurance policy to the Seller and assign to the Seller all rights to receive proceeds of insurance to the value of the Outstanding Balance.

    10.4    The Buyer shall effect all maintenance and repairs to the vehicle at his/her cost where necessary in order to keep the vehicle in the condition at which it was sold and any improvements to or accessories placed on the vehicle shall become inherent components to the vehicle.

    10.5    The Buyer will keep the vehicle free from any other liens or security interests and will promptly pay all statutory fees.

    10.6    The Buyer agrees not to sell, dispose of or transfer the rights to the vehicle to another party without the prior written consent of the Seller until such time as all monies have been paid under this agreement.

    11.1    The Buyer may prepay the Outstanding Balance in full or in part at any time without premium or penalty. All prepayments shall first be applied to outstanding late fees, then to accrued interest and thereafter to the Outstanding Balance.

    12.1    Payment in terms of this used car bill of sale shall be made at the above stated address of the Seller or at such place as may be designated from time to time in writing by the Seller or assignee of this agreement. For ease of payment the Buyer may exercise the option to effect payment by direct deposit or electronic transfer of funds into the account of Seller as specified in writing.

    13.1    If the Buyer fails to make any payment when due for whatever reason and the Seller provides notice of such failure, the Buyer must effect payment of the amount due within ____ days, failing which the Seller can demand immediate payment of the entire outstanding balance and accrued interest.

    14.1    In the event of default this agreement may be turned over for collection and the Buyer agrees to pay all reasonable legal fees, collection and enforcement charges to the extent permissible by law, in addition to other amounts due.

15.    TRANSFER:
    15.1    The Buyer may not assign his obligations under this agreement to a third party without prior written permission by the Seller.

    15.2    The Seller may assign this used car bill of sale and security agreement to a third party without notice to the Buyer and the Buyer agrees to remain bound to any subsequent holder of this agreement under the terms of this agreement.

16.    DEFAULT:

    16.1    Upon default by the Buyer under the terms of this agreement and within 3 (three) days of demand by the Seller, the Buyer shall deliver the vehicle to the Seller, failing which the Seller my enter any premises where the vehicle is being held with or without legal process and take possession of the vehicle.

    16.2    The Seller shall then have the right to sell the vehicle in any manner which he/she may deem fit and to apply the proceeds to the repayment of monies due under the agreement.

    16.3    The Buyer agrees that proceeds from the sale of the vehicle shall first be applied to repayment of monies due under the agreement and that any surplus money shall be transferred to the Buyer.

    16.4    The Buyer agrees that he/she shall remain liable for any shortfall if the proceeds from the sale of the vehicle are not sufficient to repay all monies due under the agreement.

    16.5    No relaxation, indulgence, waiver, release or concession extended to the Buyer by the Seller and no delay or omission in the enforcement or exercising of the Seller's right under the agreement shall affect the rights of the Seller under this agreement.

    17.1    Should there be more than one signatory to this used car bill of sale and security agreement, their obligations shall be joint and several and each specifically agree to be bound by all the provisions as set out in this agreement.

    18.1    The Buyer waives demand and presentment for payment, notice of non-payment, off-set, protest and notice of protest and agrees to remain fully bound until all monies are paid in full.

    18.2    The Buyer waives all defenses based on suretyship or impairment of collateral.

    19.1    No relaxation, indulgence, waiver, release or concession of any terms of this agreement by the Seller on one occasion shall be binding unless in writing and if granted shall not be applicable to any other or future occasion.

    20.1    This agreement shall be binding upon and accrue to the benefit of the parties, their successors, legal representatives and assigns.

21.    GENERAL:
    21.1    Paragraph headings are for convenience of reference only and are not intended to have any effect in the interpretation or determining of rights or obligations under this agreement.

    21.2    Should any provision of this agreement be judged by an appropriate court of law as invalid, it shall not affect any of the remaining provisions whatsoever.


    22.1    The parties consent to the jurisdiction of the magistrate's

(other ________________________) court for the district of


Signed at ______________________on this ______day of _________________20____

SELLER: ______________________________

1. WITNESS____________________________

2. WITNESS____________________________


1. WITNESS____________________________

2. WITNESS____________________________


This document was acknowledged before me on this ______day of ____________________20____

Signature of Notary Public ______________________

Full legal Name ______________________________

My commission expires ________________________

State of ________________________

County of ______________________


Provision is made on our used car bill of sale template to have the agreement notarized. Do not sign beforehand - the document will be signed in the presence of the notary public.

Follow this link for quick navigation to your area specific Department of Motor Vehicle Registration page.

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