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Car purchase agreement

A legally correct contract is a must when buying a car. Comparis explains what you should be aware of.

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A couple signs a purchase contract for a car at a car showroom.

iStock / martin-dm

When you buy a car, you should make sure that a legally correct contract exists. If the seller or buyer is a dealer, you can assume that there is a customary purchase agreement. If, however, a car is sold between private individuals, it is important to draw up a purchase agreement. It must contain all relevant information in order to prevent legal problems.

Personal details

Both the seller's and the buyer's address must be stated in full.

Vehicle details

At least the following information must be stated in a purchase agreement for the car to be clearly identifiable:

  • Make, model and type

  • First registration date

  • Chassis number

  • Mileage

  • Last motor vehicle inspection

Additional facts

For used cars there should always be a written confirmation that the car is not an accident vehicle (and if it is, the damage should be described in detail). The price and the payment method must be stated as well. Both parties sign the purchase agreement stating the place and date.

You can download a PDF template for a car purchase agreement here.