Used to finalize an automobile sale, a vehicle purchase agreement outlines the specific terms agreed upon by both the buyer and seller of the vehicle, explains Trusted Choice. Given the specificity of the agreement, the terms and conditions can vary, but they generally include payment amount and vehicle and owner information.
A vehicle purchase agreement always includes the purchase paid price, the vehicle's VIN number, and the buyer's and seller's signatures, among other identification details, reports Trusted Choice. The agreement also outlines all of the financing information for the vehicle, including, if applicable, the trade-in car's value and the length or term of the payment period. While the details may vary per vehicle purchase, most states require all dealerships to use a general contract form, making most financing agreements standard.
Because the purchase agreement is a legally binding contract, it is important to read through the terms and conditions to determine if all of the information is accurate and agreed upon by all parties, advises Trusted Choice. Such terms may include any free or included benefits with the purchase, added options the buyer may have requested, and any additional fees. All involved parties are able to amend the contract before signing.