All You Need to Know About the Sale and Purchase Vehicle Agreement in Delhi
In every sale and purchase of commodities, you are required to enter into a contract. Whether you are buying a vehicle or purchasing clothes online, you do get into an agreement. Signing an agreement is important so that you have evidence that the commodity is yours. And when you are selling any object then also it gives proof that the asset is no longer yours.
Sometimes, it so happens that contracting parties make the mistake of signing the contract without reading and understanding them. Especially, in case of selling or purchasing a vehicle, people are not aware of what should be noticed in an agreement. In this article, you will learn about all the points and information that a sale and purchase vehicle agreement in Delhi, Noida and Gurgaon includes. You will get to know the important things to keep in mind when selling or buying a new or used vehicle.
What does Sale and Purchase Vehicle Agreement Mean in Delhi, Noida & Gurgaon?
Deal of selling or purchasing of any motor vehicle between two parties requires a sale/purchase agreement. Parties use the vehicle purchase and sale agreement to finalize the deal between them. The agreement acts as proof of deal or agreement between the parties i.e. buyer and seller.
What is the Need for Vehicle Sale/Purchase Agreement?
In case of purchasing the vehicle from a private seller, the seller asks for signing the bill of sale. This is a simplified and temporary form of car sale/purchase agreement. This is essential as it will act as proof that the vehicle is no longer the seller’s responsibility if anything happens with the vehicle until the agreement is completed.
When the agreement is finalized, the seller and buyer both have the written proof of the deal. In case of the buyer, the vehicle sale/purchase agreement acts as legal proof that the vehicle is now their asset. And in case of the seller, it is proof that the vehicle is no longer their possession.
What is Included in a Sale/Purchase Vehicle Agreement?
In a sale/purchase agreement or affidavit of vehicle, there are various information mentioned. Following are some information:
- Seller’s name and address
- Buyer’s name and address
- Model, color and year of the vehicle
- Vehicle’s VIN number
- Miles covered on the odometer at the time of sale
- Date of sale
- The price paid at purchase
- Signatures of both parties
People generally find the contract of the sale and purchase of vehicles very lengthy and do not carefully read it. But there is always some doubt in their mind about whether the agreement is right or not. However, they are not as difficult to understand as they look. Apart from the information provided by the parties, the same pattern is followed in all agreements. You simply need to be aware of what should be included in it. So, following are three parts that a contract generally consists of:
Buyer’s and seller’s information
This contains the personal information of the buyer and the seller. If there is a co-owner of the vehicle, that individual’s information is also mentioned in the contract. Information generally includes the following :
- Name
- Address
- Date of Birth
- Social Security number
Sale and pricing information
This includes the overall sales price. It is broken down into the following:
- The sales price of the vehicle
- Fees that may include:
- Documentation fee
- Registration fee
- Dealership fee
- Destination fee
- Advertising fee
- The amount of your sales tax
Financing information
Financing information combines the financing terms that include the following:
- Purchase price of the vehicle, including fees and taxes
- Amount of money paid on a down payment
- An interest rate of the loan
- The term of the payment period
- Amount of monthly payments for the term duration
Things You Should Look Before Signing
Above we have mentioned what a contract generally consists of. Following are other points that should review before signing a contract so that any chances of mistake will be avoided:
- Mistakes of personal information
- Extra fees
- Added options that you did not request
- The amount of down payment
- Value of the trade-in
Now, you clearly know what points and information you should look for when going to sign or create a sale and purchase vehicle agreement in Delhi, Noida, and Gurgaon. People are usually overwhelmed when buying a vehicle and do not read the whole contract carefully. And the party who is selling the vehicle often does not care about the agreement as it consists of a lot of paper documents. In such situations, there are chances of fraud and mistakes happening, which might put you in an unavoidable situation in the future.
You know how you can avoid making mistakes and what to look for before signing the agreement. Also, to avoid the trouble and lengthy paper documents of vehicle sale and purchase agreement, you can switch to digital contracts. If you are looking for one such platform, you should look no further than Feelium E-Contract.
