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The opinion that it is impossible to profitably sell a used car in installments is wrong. To sell a car correctly and safely, you must stick to everything several rules.
Rules for completing a car purchase and sale transaction
Selling a car in installments is not much different from when the cost of the “iron horse” is paid in full. We have prepared an algorithm that will help you avoid risks when selling:
- Checking the documents of both parties for the car (certificate, passport, technical inspection card, service book, etc.);
- Drawing up a purchase and sale agreement (hereinafter referred to as the PSA);
- Entering new data into the PTS - date of transaction, signatures of both parties;
- Decor insurance policy TS;
- Inspection of the vehicle by traffic police officers for compliance with factory individual signs;
- Registration of the car with the traffic police.
Transferring a car to a new owner after completing a purchase and sale transaction in installments includes several additional points, but in general, the procedure is uniform.
Mandatory clauses of the contract when selling a car
Involve a notary in the procedure. His presence will help reduce risks. When drawing up the policy, discuss and include the following points:
- Obligations of both parties;
- Amount of down payment;
- Frequency of payments;
- Amount of regular payments;
- Payment method;
- Fines for violation of the contract;
- Options for resolving controversial issues.
The last two points are especially important. If the terms of the contract are violated, they will provide the seller with a winning position.
Risks when selling a car in installments
It is almost impossible to sell a car in installments and eliminate all risks. There are no guarantees that a person who is already actively using the car will not have objective or subjective reasons that could prevent timely payments.
In order not to increase risks, it is not recommended to transfer a vehicle under a general power of attorney without concluding an agreement - despite the fact that the buyer does not become the full owner of the car, this is fraught with big problems:
- The participant in the transaction does not get in touch, therefore, the fate of the car also becomes unknown. The first thing to do in this case is to put the car on the wanted list.
- The new owner of the car refers to the problems that have arisen financial difficulties, demanding to reduce its cost or completely refusing to make payments. You can resolve the issue without disputes and threats by adjusting the payment schedule for the convenience of both parties.
- After handing over the car, the owner found defects and insisted on changing the terms of the deal. The vehicle acceptance certificate will help you avoid the risks associated with this. It also makes sense to appoint an independent examination.
- An accident occurs after which the buyer refuses to pay the amount. You can safely go to court with this, but if you take out an insurance policy in advance, risks can be minimized and difficulties can be avoided.
- Car resale. To eliminate this situation, a prohibition on such action should be indicated in the DCP before signing it.
In general, to avoid loopholes in PrEP or not to miss important points, and at the same time reduce risks, we recommend take advantage with the help of a lawyer.
Ways to sell a car in installments
Selling a car in installments is carried out in one of three ways:
- Against a receipt on behalf of the buyer about guaranteed subsequent payment (with recording of as much personal data as possible).
- Drawing up a secured loan agreement, where the car serves as the loan itself.
- Drawing up a financial policy with agreed payment terms.
These are the most common ways to sell a used car, and each has its own advantages, disadvantages and risks.
Selling a car against a receipt from the buyer
The simplicity of the option lies in the number of documents drawn up. To sell a car, you will need a receipt obliging the buyer to make regular payments. The document contains data of both parties, information about the car, terms and amount of payment, fines for violation of the contract. To transfer the car into the hands of the new owner, it is enough to enter his data into the insurance policy. It is possible to issue a power of attorney for management, which does not require certification by a notary.
This option is good if there is not enough time to complete the documents or there are problems with the documentation or the car. In case of disputes, a receipt provided in a court . You can cover your rear by drawing up a transfer and acceptance certificate for the vehicle. The risks of violating the terms of the policy are reduced.
Drawing up a secured loan agreement
This method cannot be considered a direct sale of the vehicle. The buyer borrows from the seller an amount equal to the cost of the car, then fulfills the terms of the transaction and returns it in parts. The transaction is possible if the following documents are available:
- DCT of the car.
- A loan agreement that specifies the terms of the transaction.
- A pledge agreement, following which the car legally acquires the status of a pledge, and if the buyer violates the conditions, the seller has the right to demand the return of the car.
The last two documents require notarization. When going to court, the seller has more advantages and chances of winning.
Drawing up a purchase and sale agreement
The safest way for both parties to sell a car. Characteristic properties- the greatest directness of execution and a high level of legality. The basic document is a vehicle contract with installment payment. The difference from simple DCT is:
- The presence of the clause “Contract price and payment procedure”, containing the conditions and schedule of payment of funds.
- Additions to paragraphs “Final provisions” and “Responsibility of the parties” regarding options for disputes, sanctions for late payments and methods of collection.
The DCP acquires legal force immediately after the parties sign it. When selling a used car in installments, have the document notarized, indicating the impossibility of re-selling the car until the end of the installment plan.
Options for selling a used car
There are three options for selling a used car:
- Personally (market, advertisements, recommendations);
- With the help of a car dealership;
- With the help of the bank.
Salons and banks are in no hurry to conclude small deals, offering other schemes for selling the car. But when selling an expensive used vehicle, if the seller does not want to constantly monitor payment of funds, intermediaries will come to the rescue.
Car dealerships, moreover, will competently approach the assessment of the car and carry out all the necessary pre-sale procedures. To sell a vehicle this way, collect a complete package of documents. Difficulty may arise if the car is registered to a third party. Then the intermediaries will refuse to sell the car under such a scheme.
Methods for making regular contributions by the buyer
There are two payment methods: cash and non-cash.
- Cash is complicated in that each procedure for receiving and transferring funds is accompanied by confirming receipts. But at the same time, the new owner is always in touch, there is the possibility of a personal meeting.
- Cashless. Funds will be transferred to the bank account faster and at a time convenient for the parties, but everyone will collect receipts confirming the transfer independently.
Both methods have advantages and disadvantages, and the choice of the most comfortable method depends on many factors, in particular, the availability of free time and the location of the parties.
How to sell a car in installments
To definitely protect yourself from scammers or troubles and to isolate yourself from some risks, follow these tips:
- Even when selling a car to a friend, the procedure should be carried out according to the rules. In this case, providing an installment plan is a good help, but does not relieve the buyer from responsibility.
- To avoid a large tax, the parties often indicate an underestimated value of the car when concluding a contract, which is not worth doing. If controversial issues arise, the court will rely on factual documents, and it will be extremely impossible to prove that the price of the car was higher.
- Indicate in the documents that the car is transferred to a third party without the right to subsequent sale until the end of the payment period.
- Consider the risk of a situation in which the new owner refuses to pay the due amount - an accident or car theft. Point out that even in these cases, the person who bought the car agrees to fulfill the obligation by paying you in full.
- Carry out the procedure for re-registration of the car so that the new owner does not have to pay taxes and penalties on his own.
Based on the above, it follows Conclusion - it is advisable to sell a car in installments only in extreme cases, giving preference to the classic scheme.
Checking a used car using the Autocode service
To quickly and safely sell a car and avoid misunderstandings between the seller and the buyer, use the Autocode verification service. The report includes:
- Year of issue ;
- Number of owners;
- Customs history;
- Car mileage;
- Participation of the vehicle in accidents and indication of more damaged parts;
- History of registration actions.
For obtaining information only VIN, chassis number or registration car number . The service will help to avoid the situation of claims about the condition of the car after it is transferred to the new owner. Also, having complete information about the vehicle in hand, the seller will protect himself from claims from the buyer for previously allegedly undetected damage if, under the new owner of the car, he becomes involved in an accident.
The Autocode service provides the opportunity for on-site inspection. The procedure is simple - you leave a request, specialists will contact you to clarify the details of the verification. The technician travels to any place convenient for you, inspects the car using instruments and gives a professional opinion. The test results can also be sent by email.
The answer to the question “is it possible to sell a car in installments” is unequivocal - yes. But when using this method of selling a car, you should be extremely vigilant in drawing up documents. If the buyer fails to comply with the terms of the contract, the seller has the right to demand the return of the car. To avoid getting into an unpleasant situation, pay close attention to the personality of the person making the deal.
Please evaluate the accuracy and completeness of the agreement. I am also interested in the advisability of adding the details of a couple of witnesses present during the execution of the contract.AGREEMENT
purchase and sale of a car with installment paymentDate and place of signing
We refer to__ hereinafter as the Seller, acting__ on its own behalf, on the one hand, and _________________, hereinafter referred to as the Buyer, acting__ on its own behalf, on the other hand, have entered into this Agreement as follows.
1. THE SUBJECT OF THE AGREEMENT1.1. The Seller undertakes to transfer ownership to the Buyer, and the Buyer undertakes to accept and pay for the following vehicle (hereinafter referred to as the car):
Identification number (VIN) ____.Make, model of vehicle _________________.
Name (vehicle type) ____________.
Year of manufacture of the vehicle is ______________.
Model, engine N ______________.
Chassis (frame) N ___________________.
Body (cabin) color _____________.
Engine power, l. With. (kW)__.
Engine displacement, cubic meters cm _.
Engine's type ____________________.
Environmental class ______________.
Permitted maximum weight, kg ____________________________.
Weight without load, kg ___________.
Organization - vehicle manufacturer (country) ________________________.
Country of export ____________________.
Series, N TD, TPO _________________.
Customs restrictions ___________.
Vehicle passport (series, number, date of issue): _______________________.
Name of the organization that issued the passport ____________________.
Passport issue date _____________.
Government number ____________.
Mileage ___________________________.
Other _______.
(individual features: holograms, inscriptions, etc.)
1.2. The car is handed over fit for use, in good condition, along with all its accessories and all documents (technical passport and others).
1.3. The Parties carry out vehicle registration in accordance with clause 24 of the Rules for registration of motor vehicles and their trailers with the State Safety Inspectorate traffic Ministry of Internal Affairs Russian Federation(approved by Order of the Ministry of Internal Affairs of the Russian Federation dated November 24, 2008 N 1001 “On the procedure for registering vehicles”).
1.4. From the moment the car is handed over to the Buyer and until payment is made, the car is recognized as being pledged to the Seller to ensure the Buyer fulfills his obligation to pay for the car.
2. GUARANTEES, OBLIGATIONS OF THE PARTIES2.1. The seller guarantees:
- he is the legal owner of the car;
- taxes and obligatory payments related to the ownership of the car were paid by him before the transfer;
- the car is free from any rights of third parties and other encumbrances.2.2. Ownership of the car passes to the Buyer from the moment the car is transferred to him by the Seller, about which a corresponding Act is drawn up (Appendix to this Agreement).
2.3. The Parties undertake to maintain confidentiality with respect to all information received in connection with the implementation of this Agreement; they are prohibited from providing any persons in any manner with access to information and documents received by them in connection with the fulfillment of obligations under this Agreement, unless otherwise provided legislation of the Russian Federation.
3. PAYMENT PROCEDURE3.1. Car price: ______ (__________) rubles.
3.2. The buyer pays the price of the car (non-cash) in installments within _____________ from the date of execution of the Transfer Certificate.
3.3. Payment procedure (settlement procedure taking into account Article 489 of the Civil Code of the Russian Federation):
3.3.1. The Buyer pays the amount of __________ rubles by ________________.
3.3.2. The Buyer pays the amount of __________ rubles by ________________.
3.3.3. The Buyer pays the amount of __________ rubles by ________________.
3.4. In the event that the Buyer, who received the car, does not fulfill the obligation to pay for it within the period established by the Agreement, the Seller has the right to demand payment or return of the car.
3.5. In the event that the Buyer does not fulfill the obligation to pay for the transferred car within the period established by the Agreement, interest is payable on the overdue amount in accordance with Article 395 of the Civil Code of the Russian Federation from the day when the car should have been paid for under the contract until the day the Buyer pays for the car.
(The contract may provide for the Buyer’s obligation to pay interest in an amount corresponding to the price of the car, starting from the day the car is transferred by the Seller.)3.6. When the Buyer does not make the next payment within the period established by the Agreement for a car sold in installments and transferred to him, the Seller has the right to refuse to fulfill the Agreement and demand the return of the sold car (except for cases where the amount of payments received from the Buyer exceeds half the price of the car.)
3.7. The buyer undertakes at his own expense and at his own discretion, but no later than ____ days from the date of receipt of the car in in the prescribed manner register it (change registration data).
4. RESPONSIBILITY OF THE PARTIES4.1. The parties bear responsibility in accordance with this Agreement and the legislation of the Russian Federation.
4.2. For late payment in accordance with this Agreement, the Buyer shall pay the Seller a penalty in the amount of ____% of the amount of the unpaid payment for each day of delay.
4.3. If a Party violates its obligations under this Agreement, the other Party has the right to demand early termination of this Agreement.
4.4. The Party that violated its obligations shall compensate the injured Party for the losses caused thereby.
4.5. The Party is released from liability for partial or complete failure to fulfill obligations under this Agreement and damages caused if its actions or inaction were caused by force majeure or other circumstances, the occurrence of which it could not foresee, prevent or overcome (earthquakes, floods, other natural disasters ), including military actions, local conflicts, states of emergency, and other extreme situations.
5. DURATION OF THE AGREEMENT5.1. The Agreement comes into force from the moment it is signed and is valid until the Parties fully fulfill their obligations.
5.2. This Agreement may be terminated early in the following cases:
- by agreement of the Parties;
- at the initiative of one of the Parties - in case of violation of contractual obligations by the other Party;
- in other cases provided for by the legislation of the Russian Federation.
6. DISPUTE RESOLUTION6.1. All disputes and disagreements in connection with the implementation of this Agreement are resolved through negotiations between the Parties. If no agreement is reached during the negotiations, the dispute is subject to consideration in a court of general jurisdiction at the location of the Seller.
7. FINAL PROVISIONS7.1. Changes and additions to this Agreement are made in writing and are issued additional agreements signed by the Parties.
7.2. This Agreement is drawn up in two copies having equal legal force, one for each Party.
8. ADDRESSES AND PAYMENT DETAILS OF THE PARTIES
Here you can download a free receipt form for receiving money for a car. Download a ready-made form for handwritten completion and print it in addition to the contract.
Sample cash receipt download
– this is an important document certifying the fact that the seller has received the vehicle Money from the buyer under the purchase and sale agreement.
How to correctly draw up a receipt for receiving cash for a car.
When filling out the receipt form for receiving money, carefully check all the information you enter. Pay attention to the correct spelling of your full name, compare the signature indicated in the seller’s passport and on the receipt form.
Important information:
At buying a car from resellers may arise a difficult situation with a receipt! It is the procedure of writing a receipt that can reveal the deception - “I am the owner” of the car.
After signing by the car seller and the buyer, it may not be executed. The parties may refuse or terminate it for a number of reasons. Therefore, if this agreement the sale of the vehicle was not executed, then it is impossible to talk about the completion of the transaction in full. IN in this case It is the transfer and acceptance certificate and the receipt for receipt of money that are documents confirming the execution of the car alienation transaction in full.
Form: receipt of money
A receipt for receipt of money for a car, in accordance with the current legislation of Russia, is a sufficient document confirming the fact of transfer of cash from the buyer to the seller.
The receipt must contain the following information:
1. date, time and place of compilation,
2. information about the transaction to secure which it is drawn up,
3. the amount of money accepted from the buyer, as well as the currency of the transaction,
4. information about the buyer and seller of the car,
5. brief information about the car,
6. original signature and its transcript.
Receipt download form:
Sample receipt for receipt of funds for a car
A receipt for receipt of money guarantees the obligations of the parties
Buy or sell a vehicle- has various legal features. They must be taken into account when concluding this agreement.From a legal point of view, drawing up a receipt for receiving money for a car is an additional guarantor when drawing up a transaction.
Such a receipt is an integral part of the document execution. Agreement (DCP) is a preliminary document that defines the rules for completing a transaction, as well as the rights and obligations of the parties for the future.
The document signed by the seller and the buyer may not be executed by the parties or may be terminated. Consequently, if the sale agreement was not fulfilled, then it is impossible to talk about the completion of the transaction in full. Exactly
Although every year automobile transport is becoming more and more accessible, however, even today not everyone who wants to become a car owner has the necessary amount of money to purchase a car.
Of course, there is always the opportunity to contact one of the banks to get a vehicle on credit, but:
- Firstly, not every person is given the go-ahead by such an institution for such a service.
- Secondly, some people are considering purchasing a used car, and banks very rarely work with this type of vehicle.
Fortunately, today it is possible to draw up a car purchase and sale agreement in installments in 2016-2017, bypassing various financial institutions, that is, directly between the buyer and the seller of the car.
It should be understood that selling a car in installments is an event associated with a certain amount of risk. Both the seller and the buyer must understand that there is a possibility of fraud, so it is very important to be able to properly formalize the transaction.
How to draw up a contract for the purchase and sale of a car in installments in 2016-2017
Such a document is very important. It is this that must be presented in court in the event of any troubles between the parties to the contract.
Therefore, it is important to confirm such a purchase and sale agreement at the official level, that is, by contacting a lawyer. Without all the necessary seals, this document will not be of value during a theoretical court hearing, even if it contains data and signatures large number witnesses to the conclusion of the transaction.
There are three main options for such relationships between the seller and the buyer:
- Drawing up and certification of receipts.
- Drawing up a purchase and sale agreement with a deposit. The purchased car itself or the buyer’s real estate can act as collateral.
- Concluding a car sale transaction with installment payment. In this case, it may be indicated exact dates and the amount of amounts that one of the parties to the contract is obliged to repay.
Preparation of contract
The technical side of selling a car in installments looks like this:
- A document for the sale of vehicles is drawn up with all additional conditions. With a mandatory indication of the type of contract - installment plan.
- The papers are certified by a notary.
- The future owner of the vehicle is given a copy of the document and the technical passport of the car.
- Upon completion of all payments, the former owner, in the presence of a lawyer, issues a receipt and begins the procedure for re-registration of the car.
Naturally, if you want to sell a vehicle in installments, it is very important to indicate in the documentation the most complete amount of information, which can subsequently reduce the risk of fraudulent actions:
- It is necessary to indicate all the technical data of the vehicle being sold - its name, make, year of manufacture, color, equipment, numbers, and so on.
- The full amount that the buyer of the car must pay.
- The amount of money received by sellers at the time of execution of the bilateral agreement.
- Debt repayment schedules, amounts of deposited amounts, deadline last payment.
- Possible penalties in case of failure to comply with the terms of the contract.
- Options for returning a vehicle and so on.
Sample purchase and sale agreement with installment payment
Download the form of car purchase and sale agreement 2016-2017 with installment payment:
How does the car purchase and sale scheme work in installments?
After certification of this agreement in a notary’s office, you need to visit the regional office of the MREO with the document, where you can completely re-register the car to the new owner or choose another option - drawing up a power of attorney.
If any complications arise with the fulfillment of the terms of the contract, it is initially recommended to resolve the situation amicably. If not, submit a corresponding application to law enforcement agencies.
Selling a car in installments by drawing up a loan agreement
A loan agreement is another way to achieve the desired goal. In this case, the potential buyer initially borrows funds from another person, after which he purchases a car with them.
Typically, in this case, another document is drawn up - a pledge agreement. That is, the sponsor guarantees the return of his funds by receiving the car if the borrower for some reason is unable to pay his own debt.
In this situation, the actions of all parties look like this:
- The borrower and sponsor come to legal organization, where two agreements are drawn up at once - on a loan and on a pledge.
- The person who received the money contacts the seller to purchase the required property from the latter.
In most cases, it happens that in a law office there are three sides of this relationship at once. That is, the money is transferred directly to the seller, bypassing the hands of the buyer. Thus, the financial sponsor guarantees itself that the allocated funds will be used for their intended purpose.
Important rules to follow
One you should know important fact- how more amount money in a transaction between people, the lower the value of family or friendly relations. Unfortunately, this is true. Therefore, it is not recommended to sell a car in installments even to the closest people without proper registration of the procedure - today they are friends, loved ones, neighbors, and tomorrow they are enemies.
You should also not enter into any verbal agreements. For example, some people deliberately lower the cost of a car in documents, agreeing to receive the difference in their hands, thereby trying to reduce the amount of tax collection. In the event of a lawsuit, the plaintiff will not be able to recover more than what is indicated in the correctly executed documentation.
It is advisable to make one of the conditions of the transaction a ban on the sale of the vehicle by the new owner until the debt is fully repaid. For example, you can create a special limited power of attorney. If this rule is ignored, the car may be resold several times, which will cause difficulties if it becomes necessary to return it.
And the last rule is that you should not follow the lead of a person who persuades you not to sue him, arguing that such a procedure will bring additional costs to the latter. According to Russian legislation, the plaintiff can demand not only the entire amount of the debt, but also:
- Its recalculation taking into account inflation.
- Payment of legal costs.
- An additional penalty of three percent per annum.
Some car owners still buy and sell their cars under a general power of attorney. However this method not suitable if you decide to take the purchase seriously. The car can become your full property only with appropriate registration of all necessary documents. And if everything is more or less clear when you pay in full for the car with the papers, then what if the car is for sale?
Obligations, guarantees
If you are a buyer, then the first thing you need to pay attention to is that there are no outstanding payments associated with the car and title. All taxes must be paid, otherwise you will have to pay. Therefore, ask the seller to provide the relevant receipts and receipts. The next step is confirmation by the owner of the car of ownership. Those. he must provide a technical passport, technical certificate, and a certificate of MOT completion. It is also worth making sure that third parties do not have rights to the car (which is quite rare).
Next, you need to draw up an agreement on the sale of the car and an act of acceptance and transfer of the car. The last document is filled out by the seller or notary. Both parties must fulfill their obligations under the contract, including not disclosing the terms of the transaction to third parties.
Payment
Because If the car is purchased in installments, the documents must indicate the terms of payment. The contract specifies the number of stages (for example, 5 months) and the amount to be paid. There should also be the date of the month when the next payment is expected. If the buyer does not pay the required amount within the agreed period, the seller has the right to demand the return of the car. Moreover, according to the Civil Code of Russia, an unscrupulous buyer will also be forced to pay a penalty (interest), the amount of which is also determined by the Civil Code of the Russian Federation. There is a “nuance” here: if the buyer managed to pay half of the required money, then he has the right not to give up the car. The seller can only demand the remaining part of the payment.
Additional points
In some cases, it makes sense in the contract to list the documents transferred with the car, as well as some items, such as a fire extinguisher, jack, winter or summer tires, spare tires. The price can be requested in foreign currency, but it is better to take money in local currency. Required condition for the buyer upon purchase - visual inspection and "test drive". After the parties sign the agreement, the transaction can be considered completed.