Car Sale and Buy Agreement Letter and Articles 101 | Wuling

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Car Sale and Buy Agreement Letter and Articles 101

28 November, 2020

Image Car Sale and Buy Agreement Letter and Articles 101

A car selling and purchasing transaction requires a letter of agreement signed by the seller and buyer as an official sign that the transaction is conducted legally under the law. In this agreement letter, there are essential articles regarding the rights and obligations of both the buyer and seller.

Both new and used car sales must include this agreement letter as the end of the transaction between the seller and buyer. When you buy a car through an authorized dealer, this agreement letter is also put in place. This letter is a formal contract between the seller and the buyer which is binding in nature.

When buying a car through a non-dealer or directly via the previous car owner, you are also required to attach a car sale and buy agreement signed by both parties. This agreement letter will automatically act as lawful proof that the car has been transferred from the seller to the buyer.

Hence, everything related to the car is now the responsibility of the new car owner with proof of the sale and buy agreement. In addition, the following are the benefits of the sale and buy agreement for both parties.

For Seller

  1. Sellers can avoid complaints from buyers after the agreements are signed
  2. Transfer of rights and ownership of the car can be ascertained after the payment transaction is complete
  3. The seller and buyer can agree on a suitable seller method

For Buyers

  1. Buyers can avoid fraudulent selling
  2. Get a guarantee that a car is being sold in a good condition
  3. Get a guarantee that the car is sold according to the specifications described by the seller

Introduction of The Car Sale and Buy Agreement Letter

Introduction of The Car Sale and Buy Agreement Letter

For example, here are some preliminary samples of a car sale and buy agreement that you can use as a reference:

“On November 1, 2020, a car sale and buy agreement was obtained from the FIRST PARTY as a seller to the SECOND PARTY as the buyer. The two parties have agreed to be bound by the agreement as evidenced by ta letter with the information of each party below:

Name: Fitri Indrayani

Occupation: Finance

Addresss: Jalan Ciremai number 110 Kompleks kehutanan, Semarang, Central Java

KTP Number : 187420018200004

Mobile / Phone: 08123182312123

The above party acts as a car seller, hereinafter referred to as the FIRST PARTY

Name: Yatin Reksaningwati

Occupation: Private Employee

Address: Jalan Ciremai Number 14 Kompleks Kehutanan, Semarang, Central Java

KTP Number: 187414128200009

Mobile / Phone: 089672318976

The above party acts as the buyer of the car and hereinafter referred to as the SECOND PARTY

With this letter, both parties explain that the First Party has sold a car to the second party, with details of the Hyundai Atoz brand for Rp 35,000,000 (thirty-five million rupiahs). With the following specifications: Year of Production: 2003, Frame number: 393582BC59290, Color: Black, Fuel: Gasoline, Police number: B 360 LU.”

As exemplified above, the letter of agreement must contain basic information for both parties according to the KTP and must include phone numbers that can be contacted. Additional information below must also include detailed specifications of the car, starting from the brand, price, year of production, frame number, color, and policy number.



In the articles section, it must clearly explain the details of the sale and buy transaction that must be agreed upon between the two parties before being signed. This should be done for convenience between the seller and buyer at a later date.

The contents of the articles in the car sale and buy agreement must contain the following points:

  • Handover between the seller and buyer, including all responsibilities after the sale and buy transaction is complete
  • The agreed buying and selling price
  • Legally valid payment methods
  • Sanctions related to buying and selling (if any)
  • Additional costs (if any)
  • Dispute
  • THe effective date of the agreement letter
  • Signature of both parties on stamp duty

Wuling Family, you must understand that this agreement letter is very important in a car selling and purchasing transaction. It’s because as a seller or buyer, there are many benefits you can obtain, including to protect yourself from the risk of responsibility at a later date. Make sure this letter is included in all your car transactions, okay!

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