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How Automobile Forms Keep Your Car on the Road

Introduction

Automobiles are subject to state and federal laws which vary from one state to another. Automobile forms also vary according to purpose and nature of forms. There are different types of legal forms for automobile sales or transfers, auto dealer supplies/car dealer supplies, after sale services, safety standards, warranties, accidents and repairs.

Buying a Car

A person may either lease an automobile or buy a new one from a car dealer. Automobile lease agreements are used when an automobile is leased. Usually, automobiles are leased by paying monthly installments to a financing company. Breach of a lease agreement enables the financing company repossession of the leased vehicle. Even though automobile leasing saves huge amounts on buying vehicles, insurance rates are usually higher for leased motor cars.

At the time of sale of an auto, an invoice/bill called bill of sale is prepared. In an automobile bill of sale the seller ensures that the automobile is free of all claims. Bill of sale forms will contain information such as title of the vehicle, model of the car, VIN number, and guarantee details. Along with a bill of sale form, an Odometer Disclosure Statement signed by a notary public is also prepared. A vehicle bill of sale shows warranty of title as is and valid proof of purchase.

For people who are not able to afford a new car, investment in a used car is the best solution. One can purchase a used vehicle for less than half the price of a new car from used car dealers. However, a used car should be purchased only after a thorough inspection and after verification of the inspection check list.

Auto dealers are persons or entities who sell the vehicles manufactured by the manufacturers. Any person or entity operating under the terms of dealerships or franchise and engaged in the sale or distribution of automobiles is an auto dealer. A manufacturer and dealer enters into legal contracts called dealership agreements.

Vehicle Law

Legislation that provides compensation to a purchaser of an automobile that repeatedly fails to meet quality and performance standards is known as the Lemon law. Lemon law forms deal with issues that may have an effect on the legal rights and obligations of the parties in a defective automobile.

State laws govern automobile accidents and liability auto insurance that individuals must take in order to lawfully operate a motor vehicle. Persons who fail to maintain liability insurance and who causes accidents are personally liable. Automobile liability insurance policy generally consists of bodily injury liability, personal injury protection collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage. If or when one is injured in a motor vehicle accident s/he can claim compensation by filing a personal injury claim form with the insurer.

Other types of automobile agreements such as towing agreements, agreements for licensing and registration of recreational vehicles and parking agreements vary from state to state. Since state laws and legal forms differ, while entering into such agreements, local laws are usually applied and adhered to. Recreational vehicles are motor vehicles used for recreation or pleasure. For operating recreational vehicles, licensing and registration is required. The towing industry is a fast growing industry in the United States. A tow truck is used to move motor vehicles from one location to another particularly in the case of breakdowns or collisions.

Automobile Forms FAQs

What kind of paperwork will I need to buy a new car?

When buying a car, whether new or used from a car dealer, you will have to deal with various legal forms involved in the transfer/sale of an auto. Some of these forms will govern areas like auto dealer supplies and after sale services. They may also cover warranties with regard to repair or accidents.

Can you tell me what an automobile bill of sale is?

A vehicle bill of sale form is a document that is prepared for the sale of a motor vehicle. It serves as an invoice by the auto dealer/seller and it frees the vehicle of all future claims. Bill of sale forms contain all relevant information regarding the sale transaction including the vehicle's title, model make and VIN number. They also contain all the guarantee details accompanying the vehicle. A notary public signed Odometer Disclosure Statement may also be part of the bill of sale package. A Vehicle bill of sale in effect is a legal proof of purchase and demonstrates warranty of title as is.

What is an automobile lease agreement?

Automobile dealerships allow you to either buy a vehicle outright or give you the option to lease one. If it is a car you are looking for, entering into a lease with a car dealer allows you the use of one by the payment of monthly installments to a car financing company. You might end up paying higher auto insurance rates for your leased vehicle, but it makes business sense as you do not have to pay a large amount for the actual purchase of the car upfront. However, if you default on the payments due on the vehicle, which in essence is a breach of the auto lease agreement, the vehicle may be liable to repossession by the financing company.

If I want to buy a used car, whom should I buy it from?

Buying a used car is a good idea if you do not want to invest in a new car. However, it is important that you approach a reputed auto dealer, who is a person/entity authorized by the car manufacturer to sell its vehicles. When buying from used car dealers, make sure that the used vehicle has been thoroughly inspected. Also verify the inspection checklist to make sure that the vehicle you are buying has no major defects or problems.

What is the Lemon Law?

Sometimes things go wrong with the best of products, and automobiles are no exception. You may find that the automobile you have purchased has quality issues and does not live up to the performance standards it had promised. You need not lose heart. Legislation exists to protect your rights as a purchaser of a defective automobile. This is called the Lemon Law. Lemon laws govern the rights and responsibilities of the buyers and sellers involved in the sale of a defective vehicle.

What is the kind of insurance is required to operate a vehicle?

Automobile accidents are a potential risk borne by the vehicle drivers and hence state laws mandate that vehicle owners/drivers buy liability auto insurance in order to legally operate a motor vehicle. Owning a personal liability insurance policy will cover you on areas of personal injury protection, and offer you comprehensive collision coverage. If you do not buy auto insurance, and in the unfortunate case of an accident or collision, you will be personally liable for the damage caused to the vehicle/vehicles involved.

Can you tell me what other kinds of auto agreements exist?

Towing and parking agreements are the other commonly used auto agreements. These differ from state to state and legal forms pertaining to them are subject to local laws. Registration and licensing for recreational vehicles is another area governed by auto agreements.


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