Is a Contract Required When Selling a Car?

[LeAiden]

Selling a car with or without a written contract is up to the parties involved. Overview of Sales Contracts: The act of selling a vehicle falls under the category of a sales contract. While a written sales contract is not mandatory, it is generally advisable to draft one in line with common transaction practices. This helps prevent disputes, mitigate risks, and facilitates the vehicle transfer process after the sale. Legal Basis: Article 596 of the Civil Code of the People's Republic of China stipulates that a sales contract typically includes clauses such as the name, quantity, quality, price, performance period, place and method of performance, packaging method, inspection standards and methods, settlement method, language of the contract and its validity, among others.

[LaMaximus]

Signing a contract when selling a car is a must—I speak from personal experience. Last time I didn’t sign one and sold to a stranger, but after the deal was done, the buyer claimed the car had hidden damages and demanded a refund before even paying in full. It ended in a dispute that went to court, dragging on for six months. Since then, I always print a standard sales contract listing the car model, license plate number, price, delivery time, and payment method—whether cash or bank transfer. Both parties sign and fingerprint it, which serves as proof of the new owner and is useful for DMV transfer. Without a contract, if accidents or payment disputes arise, responsibility becomes unclear. I recommend downloading free templates online, filling them out, and avoiding trouble while staying safe. Nowadays, with digital convenience, some car-selling apps even auto-generate e-contracts—efficient and legit.

[DeAlana]

In the auto repair business, I always emphasize the importance of signing a contract when handling transfer transactions for customers. If you don't sign one when selling a car, there are significant risks. For example, the buyer might approve the car during inspection but later claim there's an engine issue after delivery, which could lead to disputes. The contract serves as evidence. It should include the vehicle's VIN, selling price, payment details (such as whether it's installment-based), and clauses on liability transfer to ensure both parties agree on the car's condition. When I sold my old utility truck, I used a mobile template, filled it out in minutes, and felt much more at ease after signing. Without a formal agreement during the transfer process, the DMV might refuse to process it, causing delays. Don't underestimate this—it protects your interests and prevents financial losses. I recommend regularly checking contract versions to ensure compliance with the latest regulations, as cutting corners here could lead to bigger problems.

[DaisyRose]

Hey, as a car enthusiast, I always sign a contract when selling my beloved car. It helps prevent pitfalls, like when the buyer tries to back out or when determining who's responsible in case of an accident. Just make sure the contract clearly states the car's condition, price, and delivery date. I've seen a friend sell his car on an online platform without a contract—just a direct transaction—and ended up not receiving the payment while the buyer disappeared. It took a police report to resolve the issue. Nowadays, electronic contracts are super convenient—just download, fill out, share, and it's done in minutes. After signing, the transfer process goes much smoother. Don’t skip it—think of signing as adding a bumper for protection.