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.
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.