Bills of Sale and Purchase Agreements for Car Dealers
Independent car dealers sell vehicles to buyers who increasingly shop online, arrange financing remotely and want to spend as little time as possible at the dealership. Codec Document helps small dealers and private sellers prepare bills of sale, purchase agreements and delivery forms, and get them signed quickly, while respecting the parts of the process that still require specific forms.
Unclear sale terms come back as complaints
Used car sales generate more consumer complaints than almost any other purchase, and most of them are about terms the buyer says they did not understand: as-is condition, the fees included in the price, what happens with a trade-in payoff. Dealers who put these terms in a clear document signed by the buyer, alongside the required federal and state forms, spend far less time defending sales afterwards.
How it helps car dealers
Bills of sale with all the details
VIN, mileage, price, payment method, as-is language and the parties, in a bill of sale both sides sign.
Purchase agreements for remote buyers
Buyers who arrange everything by phone can sign the purchase agreement before they arrive to pick up the vehicle.
Trade-in and payoff terms
Trade-in value and payoff responsibility stated clearly, so nobody is surprised by a lien that was not paid off.
Delivery and condition acknowledgments
The buyer confirms they received the vehicle, keys and documents in the stated condition.
Federal used car and odometer rules
Dealers must display a Buyers Guide on used vehicles under the FTC Used Car Rule, 16 C.F.R. Part 455, and it becomes part of the sales contract. Federal law requires a written odometer disclosure on transfer, under 49 U.S.C. § 32705 and 49 C.F.R. Part 580; since 2020, those rules allow electronic odometer disclosures in states that have adopted a compliant system. Title transfer and registration follow each state motor vehicle rules, which may still require original signatures on title documents. For other sale documents, electronic signatures are valid under the ESIGN Act, 15 U.S.C. § 7001.
The as-is sale
A small dealer in Georgia sold a 12-year-old sedan as is. Three weeks later, the transmission failed and the buyer demanded a refund, saying nobody told him there was no warranty. The dealer had the Buyers Guide marked as is and a bill of sale with the as-is paragraph initialed and signed electronically by the buyer. The complaint went no further, and the dealer offered a discount at a partner repair shop as goodwill.
What to put in writing in every sale
- The VIN, year, make, model and odometer reading.
- The price, all fees and the payment method, with no fee left unexplained.
- Warranty status, matching the Buyers Guide, including as-is where applicable.
- The trade-in value and who pays off any existing loan on it.
- Delivery date, keys, manuals and documents handed over.
- Any state-required forms, which may need original or notarized signatures.
Questions people ask about this
Can a bill of sale be signed electronically?
Yes, in general. Title transfer documents may have separate requirements set by your state DMV.
Can private sellers use this too?
Yes. Private sellers can create a bill of sale and have the buyer sign it on a phone at the handover.
Does the bill of sale include the odometer reading?
Yes. Include the mileage in the bill of sale; the federal odometer disclosure follows its own rules and form.
Do the rules differ by state?
Yes. Some states require notarized bills of sale or specific forms. Check the requirements for your state before the sale.
What about buyers who finance the vehicle?
Retail installment contracts are regulated by federal truth-in-lending rules and by state law, and many lenders use their own electronic contracting systems. You can still use Codec Document for the documents around the sale, such as the purchase agreement, trade-in terms and delivery acknowledgment, while the financing contract follows the lender process.