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Motor Vehicle Dealer Retail Sales Agreement

Motor Vehicle and Parts Dealers · NAICS 441 · Retail Sales Agreement

A retail sales agreement is the cornerstone of every vehicle sale. For motor vehicle dealers, this document must comply with state licensing laws, federal odometer regulations, and FTC used car rules. It clearly outlines the vehicle, price, warranty, and responsibilities of both dealer and buyer, protecting your dealership from disputes. Whether you sell used cars, new cars, or handle trade-ins, a tailored agreement ensures you cover all necessary disclosures and terms, reducing legal risk and building customer trust.

When you need this document

Selling a used vehicle to a retail customer
Selling a new vehicle with remaining manufacturer warranty
Handling a transaction that includes a trade-in vehicle
Offering an extended warranty or service contract
Completing a cash or financed sale at your dealership
Documenting a lease buyout transaction

What the generated draft includes

Identification of dealer and buyer with license details
Detailed vehicle description including VIN and odometer reading
Purchase price, fees, taxes, and total amount due
Warranty disclosures (as-is, dealer, manufacturer, or extended)
Trade-in terms and conditions
Odometer disclosure and other required federal/state notices

Frequently asked questions

Is a cooling-off period required for vehicle sales?

Generally, no. Federal law does not provide a right to cancel for vehicle purchases, and most states do not require a cooling-off period. However, some states have specific rules for certain situations, such as buying from a temporary location. Your agreement should state that the sale is final unless otherwise required by law.

What is the difference between 'as-is' and a warranty?

An 'as-is' sale means the vehicle is sold without any warranty, and the buyer accepts it in its current condition. A warranty (dealer or manufacturer) provides certain repairs for a specified period. Extended warranties are service contracts sold separately. The FTC Used Car Rule requires dealers to display a Buyer's Guide that explains these options.

Do I need to include odometer disclosure in the agreement?

Yes, federal law requires a written odometer disclosure for most vehicle transfers. Your retail sales agreement should include a section where the seller discloses the odometer reading and certifies its accuracy to the best of their knowledge. This helps prevent odometer fraud and ensures compliance.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.