Last updated October 19, 2022
What is a Car Sale Receipt?
A Car Sale Receipt is a document a buyer and seller use during a vehicle purchase transaction. Even though its name refers specifically to cars, you can use this Car Sale Receipt template when selling any motor vehicle.
The receipt documents the vehicle purchase, creating proof that its ownership was transferred from the seller to the buyer. Our Car Sale Receipt template can document vehicle purchases for dealerships or private sales.
A Car Sale Receipt is also known as a:
- Vehicle sale receipt
- Used car sale receipt
- Sold as seen car receipt
Who should use a Car Sale Receipt?
Both individual sellers and dealerships can use a Car Sale Receipt to transfer the ownership of a vehicle from one party to another. Individuals selling a used vehicle should provide a receipt to a buyer so there is a clear record of the transfer of ownership.
If you’re buying a car and the seller doesn’t initiate the use of a Car Sale Receipt, you can suggest you use one.
If you find yourself in a situation where multiple people are collectively buying or selling a vehicle, you can list more than one seller or buyer within a Car Sale Receipt.
How do I write a receipt for a car?
You can create a receipt for a car, or any other vehicle type, by completing LawDepot’s Car Sale Receipt questionnaire. We’ll ask you for details about yourself and the other party, the vehicle, the price, and more.
1. State the vehicle details
To properly complete your Car Sale Receipt, you will need to supply some information about the vehicle. Before you begin creating your document, you should know the following information about the vehicle:
- Make
- Model
- Year
- Body type
- Vehicle identification number (VIN)
- Odometer reading
Next, you must provide the buyer’s and seller’s names and addresses. Use each party’s full legal name. If the seller is a company, use its incorporated name as opposed to its trade or business name.
It’s imperative that a Car Sale Receipt clearly outlines the agreed-upon sale price. For more information about pricing vehicles, see the “How much should I sell my vehicle for?” section. If you wish to transfer the property as a gift, use a small amount such as €1.00 or €10.00 as the price.
In addition to the basic sales price, specify whether Value Added Tax (VAT) is included in the price.
You can buy or sell a vehicle with a number of different payment options. LawDepot allows you to indicate any of the following payment methods that will be included in your transaction:
- Cash
- Bank draft
- Cheque
- Electronic funds transfer
If these payment options don’t work for you, specify that you will close the sale with another viable payment method, such as a money order. Sellers should secure payment before handing over the keys to the buyer.
5. State if there are any loans or liens on the vehicle
In almost all cases, buyers shouldn’t accept a Car Sale Receipt where there is a loan or lien against the vehicle unless the seller intends to accept full responsibility for their outstanding debt.
If a loan or lien is to be passed to the buyer, then the purchase price should be reduced by a corresponding amount. Typically, a bank will not allow a seller to transfer their car loan to a buyer.
Do I need to give a receipt when selling a car privately?
Yes, if you are selling a vehicle, you should provide the buyer with a Car Sale Receipt. Proper documentation is essential when selling substantial property, such as a vehicle. The receipt provides proof of the buyer’s ownership and responsibility for their purchase.
How much should I sell my vehicle for?
If you list your vehicle for too much, there might not be much interest. But if you ask for too little, you may lose the opportunity to capitalise on the vehicle’s worth.
There are multiple factors to consider when determining your vehicle’s listed price:
- Non-mechanical condition: Consider any damage to the vehicle’s exterior, such as scratches and dents, when deciding your asking price. Also, consider any interior damage, such as a permanent odour from smoking.
- Mechanical issues: Any mechanical issues with the engine, transmission, or brakes will affect your vehicle’s value.
- Service history: Having records of your vehicle’s maintenance or service history can help you ask for a higher price. If a potential buyer sees a vehicle’s extensive oil change or brake inspection history, you can justify a higher asking price.
- Kilometres: When determining your listing price, also consider the odometer reading. A car with a higher odometer reading should usually have a lower asking price.
- Accident history: If your vehicle has been in an accident, it can affect your car’s worth. Many buyers will be inclined to pay more for accident-free vehicles.
- Market: Supply and demand can affect your vehicle’s worth. If the market is favouring buyers, you may have to lower your asking price to see interest in your vehicle.
- Brand: Brand reputation is something to consider when determining an asking price for your vehicle. Look at vehicle listings online to see the asking price for those similar to your vehicle. Doing so can help you set a reasonable asking price.
As a buyer, should I buy a car with an existing loan or a lien?
In most situations, you should avoid transactions where there is a loan or lien against a vehicle unless you intend to accept full responsibility for the outstanding debt.
If the seller is transferring a loan to you, then the purchase price should be reduced by the corresponding loan amount.
What is the difference between a Car Sale Receipt and a Bill of Sale?
A Car Sale Receipt is a more specific version of a general Bill of Sale. You can use a Bill of Sale to transfer ownership of any personal property from one person to another. However, a Car Sale Receipt can only transfer the ownership of a vehicle.
Who gets to keep the Car Sale Receipt?
It’s recommended that both parties keep a signed copy of the Car Sale Receipt for their records. Having proof of the transfer of ownership can be helpful if the parties have a legal dispute regarding the transaction.
