Thursday, June 28, 2012

Vehicle Promissory Note and Bill of Sale

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www.contractcentral.com Whenever you sell (or buy) an Automobile or other vehicle and also wish to allow payments for the vehicle to be made in installments, it is a good idea to document the transaction in writing. A Vehicle Bill of Sale can be used for that purpose by anyone selling or buying a car, van, car, truck, trailer or motorcycle to/from another person with installment payments. It can help both the Seller and Buyer to protect their rights and is useful to both for tax and other accounting purposes as well. A Vehicle Bill of Sale can also help the Buyer prove that he/she owns the vehicle. The included Promissory Note for Purchase of Vehicle, establishes the Buyer's obligation to pay for the purchase price of the vehicle in monthly installments until the vehicle is paid off. The Promissory Note sets forth the amount of the loan, terms of the loan, the interest rate, the payment schedule, the rights and obligations of the Seller and Buyer and also identifies the parties and the vehicle that is being paid for. This form allows the Buyer to repay the "loan" back at any time without a penalty. In the event of default the Seller would have the right to retake possession of the vehicle.
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