Purchasing Agreement Contents

• Auto Purchasing agreements are the bill of sale for an automobile, whether purchased through a dealer or private owner. When purchasing through private owners, the agreement is simpler, containing information on the price, title, auto make and model, buying and selling parties, and sale condition, such as "as is." Since private owners don't normally offer warranties, financing and additional items, a dealer's purchasing agreement contains extra sections to cover these conditions.
  
  

Purchasing Agreement Legalities

• Car purchasing agreements are legally binding. According to the Wisconsin Department of Transportation, there is no three-day grace period after the purchasing agreement is signed. The three-day rule applies if the contract was signed off the dealer's premises, such as at a car show or shopping center display. A purchasing agreement signed at the dealer is a finished transaction, although purchasing agreements can be nullified if the car is not delivered within 15 days of the agreed upon delivery date. Some dealers, however, cancel an agreement if there is sufficient reason to do so, but it is a goodwill gesture and not required.
  
  

Scams and Other Issues

• Before signing a auto purchasing agreement, note that everything negotiated is in the contract, including all promises made by the salesman. Although not a common practice at most dealerships, negotiated prices can be altered on the purchasing agreement in the hope that the buyer does not notice. Also, do not leave any contract sections blank, even if they are not required in your purchase; put a line through them. Other known auto sales scams include: trade in overestimation, inflated monthly payments and asking you to lie about your income on the agreement. False information on an auto purchasing agreement may get you financing, but you may be held accountable if the transaction backfires.
  
  

Negotiation Process

• Before purchasing an automobile, negotiate the terms, including price, add-ons and the financing terms. This is very important, especially when financing through the dealer; the overall price may be acceptable, but the monthly payments can be high. According to the Oregon Department of Justice, everything is negotiable when purchasing an auto. Also, be ready to walk away from the sale at any time if you believe the seller is not being fair or honest. Everything negotiated needs to be on the purchasing agreement before signing or you will be stuck with the wrong terms.