11 min what must be included in the purchase contract for a car, what you should look out for in a dealer and private purchase, and when it is possible to withdraw from the contract.
For most germans, a car is more than just a means of transportation – 80 percent of private new car buyers in a survey conducted by the deutsche automobil treuhand stated more than 4.000 participants say that they are happy when they see their car. Even though the anticipation is great, the buying a car take absolute care, so that later the big disillusionment does not occur. Here you can find out what must be included in a car purchase contract, what must be taken into account before signing the contract and what is important for registration. You can also download a sample template for the purchase contract.
Overview: this is important when buying a car
After initial research into which models are suitable for purchase, focus on the costs – starting with the purchase costs and maintenance costs through to the level of vehicle tax. After these considerations, the practical part follows with dealer search, inspection and test drive. When you have found a vehicle that suits you, the next step is to negotiate the price. If an agreement is reached, the purchase contract can finally be drawn up.
As a general rule, experts recommend that a car should never be purchased without a written purchase agreement. the contract must also be watertight – for both buyer and seller. It will be, if as much information and data about the vehicle as possible are recorded in it; and these should be described as clearly and in as much detail as possible.
What must be included in the contract for the purchase of a car
- Name, address, date of birth and identity card number of the buyer and the seller
- Car make and exact model designation with manufacturer and type number
- Previous registration number
- Identification number of the vehicle
- Number of the registration certificate part II (vehicle title)
- Date of first registration
- number of previous owners
- Date of the next general inspection
- Mileage
- Purchase price in numbers and words with the currency
- Information about sold accessories and additional equipment
- number and details of previous damage and accidental damage
- Possible special agreements
- Warranty commitments of the seller
- Commitment of the buyer to transfer the car within three working days
seller and buyer each get a signed copy of the purchase agreement. If defects appear after the purchase, both the seller and the buyer can invoke the purchase contract.
What to consider before signing the contract?
If you buy a used car from a dealer or privately rather than over the Internet, you will usually take it for a test drive. The following things should be taken into account:
- Take a companion with you, because four eyes see more than two.
- Test drive different models to have a comparison.
- Inspect the condition of the vehicle carefully if it is a used car.
- Ask about the insurance coverage before the test drive if it is a private sale. minimum is motor vehicle liability insurance.
What does cheap car insurance cost?
Private sale
If verbal agreements are made in addition to the information stated in the contract, it is important that these are also recorded in writing. Ideally on a separate paper as an annex to the purchase contract. the seller should not give the buyer the registration papers until the full purchase price has been paid. In addition, it should be stipulated in the contract that the buyer will transfer the car to his name and insurance company within three working days.
Buying from a dealer – used and new cars
For new cars, there are standardized purchase contracts that refer to the so-called new car sales conditions, NWVB for short. These were developed jointly by the central association of the german motor vehicle trade, the association of the automotive industry and the association of motor vehicle importers. However, commercial sellers do not necessarily have to adhere to this. Nevertheless, they may not exclude the statutory warranty or liability for material defects – which lasts for two years. For used cars, the period can be shortened to one year. Some dealers do this, others also offer a two-year warranty on used cars. Commercial dealers must present their general terms and conditions when signing the contract. These must not contain any clauses that cancel or limit the statutory warranty.
Insurance coverage:
Even before buying a car, it is important to consider the scope of vehicle insurance – third-party, partially comprehensive or fully comprehensive – and which insurance company should be considered. The prices and benefits of the insurers differ, sometimes significantly from each other.
This is important after signing the contract
The buyer is obliged to register the car in his own name without delay. In the case of a private car purchase, the new owner must go to the registration office himself. Even if the purchase contract states that the car belongs to the buyer, the buyer is not the official owner of the vehicle until it has been re-registered. Commercial dealers often offer this as a (chargeable) service. For this purpose, the dealer requires an electronic insurance confirmation, or evb number for short, from the vehicle insurance company. The evb number is proof of existing motor vehicle liability insurance. It is a 7-digit code of numbers and letters and contains information about the vehicle and the policyholder.
When is a car sale effective?
The purchase contract should contain the full details of the contracting parties and the vehicle. The conclusion of the contract does not require a specific form, but it is recommended to agree on it in writing. As soon as the buyer and seller have signed the purchase contract, the purchase of the car is generally effective.
In the digital age, however, contracts concluded by e-mail are also legally binding. Because even there, both parties declare that they want to be bound by the contract. In the meantime, there are several providers who have specialized in pure online sales, and some car manufacturers, such as mercedes, also offer new car purchases via the Internet.
a verbal sales contract is also legally binding if the buyer and seller agree to enter into a contract. However, experts advise against this. If one party subsequently decides against the purchase or sale, the verbal agreement is difficult to prove.
When is a car purchase completed?
With the handing over of the vehicle, the seller fulfills his obligation from the purchase contract. Upon receipt, the buyer should check whether possible defects are visible on the vehicle and then claim them immediately. In addition, the completeness of the documents and keys handed over must be checked.
How long is the withdrawal from a car purchase possible??
There is no basic right of withdrawal when buying a car. If a car sales contract is signed, it is also binding. Nevertheless, there are some circumstances that allow a withdrawal from the purchase contract.
In the case of a new car purchase, a binding order is usually agreed upon first; this is not yet a purchase contract. However, the prospective buyer is bound to this order for a certain period of time – usually between 10 and 21 days. The order is then a limited offer to purchase. If the seller does not sign the order confirmation during this period, the order is no longer binding and a purchase contract is not concluded.
If a financing contract is concluded at the same time as a purchase contract, there is a 14-day right of cancellation. If the financing contract is revoked, this automatically also applies to the purchase contract.
If the vehicle was purchased on the internet without being inspected, there is also a right of revocation of 14 days after conclusion of the contract. This applies in principle to contracts concluded by distance selling.
Delayed delivery:
Even if the delivery of the vehicle is repeatedly postponed, rescission is possible. However, the delivery must be reminded in writing by the buyer and a grace period granted. Delivery bottlenecks due to force majeure, such as natural disasters, automatically extend delivery times. At the latest after four months, however, must also be delivered. If this does not happen, you can withdraw from the purchase and possibly even claim damages.
When is a car sales contract invalid??
The purchase contract for a car is voidable if it can be proven that there is a significant defect in the vehicle, but this was concealed before the purchase. This could be, for example, engine or transmission damage.
If you sell your car privately, you can exclude warranty claims. In the contract is then a formulation such as "the sale is made under exclusion of any warranty". This only applies if the seller does not conceal any damage from the buyer. Otherwise, the buyer can assume fraudulent misrepresentation and contest the car sales contract.
However, fraudulent misrepresentation is not always provable. In these cases, the seller – whether commercial or private – must be given the opportunity to repair the damage. A reduction in the purchase price is also a possibility.
Is it possible to return a car after purchase??
Returning the vehicle after purchase is only possible if there is a significant defect that probably already existed at the time of delivery. However, this only applies within the first six months – even if there is a liability for material defects for two years. After six months, the buyer has the burden of proof and must prove that the defect was already present before the purchase – a rather difficult undertaking in practice.
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