In some cases, a seller can sell a car when the bank still holds the title (i.e., the seller still owes money on the car). An owner may only sell a vehicle if it has a clear title, which means that there are no liens on the title for car loans or other legal action against the owner. You can state in the contract that your purchase price includes this sales tax (“inclusive of all sales taxes”), or decide that sales tax is additional to the price (“exclusive of all sales taxes”). In some states, you must charge sales tax. State whether the purchase price is inclusive of sales taxes.After all payments are complete, you can send the title to the new owner via certified mail. If you do agree to a payment plan, be sure that you hold the car’s title until the payments have all been made in full.A common fraud scheme is for someone to give an initial payment, then take the vehicle and disappear. Only agree to a payment plan if you know the person to whom you are selling the car. For example, the buyer might pay $250/month for sixteen months.

Though not recommended, you can also stipulate an agreed to payment plan.Buyer agrees to pay to Seller the purchase price of $500 to be paid in cash.” X Research source For example, “The date of sale is March 14, 2011. Describe the method of payment for the purchase-cash, personal check, cashier’s check, money order, etc. State the date of the sale and the purchase price.

Example of simple bill of sale for car