The New Car Purchase Contract serves as the primary legal instrument for documenting the sale of new vehicles in the United States. This contract is essential for establishing clear terms and conditions between dealerships and buyers, protecting both parties' interests while ensuring compliance with federal and state regulations. It includes crucial information such as vehicle specifications, pricing, payment terms, warranties, and required disclosures. The document must adhere to various federal laws including the Truth in Lending Act, FTC rules, and state-specific requirements for vehicle sales. This standardized agreement helps prevent disputes and ensures transparent documentation of the transaction terms.
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1. Parties: Identification of seller (dealership) and buyer with full legal names and addresses
2. Background: Context of the transaction and basic agreement to sell/purchase
3. Definitions: Key terms used throughout the agreement including Vehicle, Purchase Price, Closing Date
4. Vehicle Description: Detailed description including make, model, year, VIN, color, mileage
5. Purchase Price: Total price, deposit, payment terms, taxes and fees
6. Warranties: Manufacturer and dealer warranties, disclaimers
7. Transfer of Title: Terms of ownership transfer and registration requirements
8. Representations and Warranties: Statements of fact and promises by both parties regarding the vehicle and transaction
9. Governing Law: Specification of applicable state law and jurisdiction
10. Signatures: Execution block with date and signatures of all parties
1. Trade-in Vehicle: Details of any vehicle being traded in as part of the purchase, including condition and value
2. Financing Terms: Detailed loan terms and conditions if purchase is being financed through dealer
3. Extended Warranty: Terms of any additional warranty coverage purchased by buyer
4. Insurance Requirements: Specific insurance requirements if financed or required by state law
1. Schedule A - Vehicle Condition Report: Detailed inspection report documenting the condition of the vehicle at time of sale
2. Schedule B - Warranty Documentation: Manufacturer's warranty terms and conditions
3. Schedule C - Financing Agreement: Complete loan terms and conditions if vehicle is being financed
4. Schedule D - State-Required Disclosures: Required state-specific forms and disclosures
5. Schedule E - Odometer Disclosure Statement: Federally required mileage disclosure statement
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