How do i write a used car payment contract?

Question

I am selling my car and want to set up payments with a friend but I want a contract stating as such.

Answer 1

It's more detail on what other people are telling you.  Yeah get the payment, term, interest rate and so on, but the key is, you need to get a lien recorded on it through the state.  I would talk to a buy here pay here lot and ask them if you can purchase a blank contract from them.

Answer 2

A contract can be very simple, no lawyer-speak involved.

Just write down in simple language the price of the car, the number of payments, the payment amount, and when the payments are due.

Describe the car briefly, and name the seller, and buyer.

Then both sign.

Example:

Jane Doe agrees to sell John Smith a 1993 Dodge Caravan for $2,000

John Smith agrees to make payments of $100 due every 1st day of  each month, in 20 individual installments.

Car is sold as-is, where-is, no warranty.

Answer 3

Whatever the written agreement for payment, retain the title (or at least a lien on the title) and a spare key until it is paid for.  And make sure it is adequately insured to protect your interests or liability (including collision/comprehensive).

Answer 4

well it's got to consist of 3 major things when payments are due, amount of payments and when it should be paid off it should also have at least 1 or 2 witnesses signatures but i suggest you ask a lawyer  

Answer 5

I would advise against any contract involving payments and friends.

There are just too many things that can go wrong to mess this up.

As long as the loan is still in your name you will be 100 percent responsible for that car.

Answer 6

Thats a bad idea. You're just asking for trouble.

Let me ask you this:

If your friend doesn't pay, or gets too far behind, are you willing to hire a lawyer and sue them over it? if not, then why do you need a contract.

Seriously, the best thing to do is just ask your friend to get a loan from a bank and pay you the full price up-front. That way the loan is not your problem. Plus, borrowing money will always strain a friendship, always!