Personal Finance

About Auto Bill of Sale

Seller Pitfalls

The seller usually assumes that once they receive the funds associated with the transaction, they do not need to worry anymore. This is correct as long as the bill of sale is proper and contains an odometer disclosure form. The odometer disclosure form specifics the number mileage on the vehicle the date the ownership is transferred to the seller. This is important down the line in many scenarios that include:

  • The buyer in turn sells the vehicle and alters the mileage on the car in order to obtain a higher price. The new buyer discovers that the mileage was altered and reports the fraud. Without the odometer disclosure form, it is very hard to ascertain if the fraud was committed by the original owner or the second owner. Therefore, a proper bill of sale would ensure the original owner is free from any unforeseen developments.
  • The buyer alters the odometer reading in order get repairs under warranty. As outlined above, again it is almost very difficult to determine who committed the fraud. The last thing the original owner wants is to be liable for something they did not do.

Additionally, a proper auto bill of sale may indicate that the vehicle was sold ‘as is’. This absolves the seller from any misrepresentation demands down the line.

Buyer Pitfalls

The buyer needs to ensure that what they were sold was as promised verbally. A proper auto bill of sale would indicate the particular of the car namely: make, model, vin, mileage, color, body type. Also detailed are the owner’s particulars.

As outlined in the seller section above, the odometer disclosure form would protect they buyer from any fraud committed as a result of changing the mileage on the vehicle.