Section 1 - Party Identification
ALABAMA VEHICLE PURCHASE AGREEMENT
Date of Agreement: [[Date of Agreement]]
SELLER (Dealer or Private Party)
Name / Dealership Name: [[Seller Full Legal Name or Dealership Name]]
Dealer License Number (if dealer): [[Alabama Dealer License Number - or "N/A - Private Sale"]]
Address: [[Seller Street Address]], [[Seller City]], Alabama [[Seller ZIP Code]]
Phone: [[Seller Phone Number]]
Email: [[Seller Email Address]]
BUYER
Name: [[Buyer Full Legal Name]]
Address: [[Buyer Street Address]], [[Buyer City]], [[Buyer State]] [[Buyer ZIP Code]]
Phone: [[Buyer Phone Number]]
Email: [[Buyer Email Address]]
Driver's License Number / State: [[Buyer Driver's License Number]] / [[Issuing State]]
Section 2 - Vehicle Description
| Field | Details |
|---|
| Year | [[Vehicle Year]] |
| Make | [[Vehicle Make]] |
| Model | [[Vehicle Model]] |
| Trim / Body Style | [[Vehicle Trim and Body Style]] |
| Exterior Color | [[Vehicle Exterior Color]] |
| Interior Color | [[Vehicle Interior Color]] |
| VIN (17 Characters) | [[Vehicle Identification Number]] |
| License Plate (if transferring) | [[Current License Plate Number - or "N/A"]] |
| Current Odometer Reading | [[Current Odometer Reading]] miles |
| Title Number | [[Existing Title Number]] |
| Title-Issuing State | [[Title-Issuing State]] |
Section 3 - Itemized Purchase Price
| Item | Amount |
|---|
| Cash Sale Price (before adjustments) | $[[Cash Sale Price]] |
| Trade-In Vehicle Allowance (credit) | - $[[Trade-In Allowance - or "0.00"]] |
| Trade-In Payoff Amount (if financed trade-in) | + $[[Trade-In Payoff Amount - or "0.00"]] |
| Dealer Documentation / Preparation Fee | $[[Dealer Doc Fee Amount - or "N/A"]] |
| Dealer Accessories / Add-Ons | $[[Accessories and Add-Ons Total - or "0.00"]] |
| Extended Warranty / Service Contract | $[[Extended Warranty Amount - or "0.00"]] |
| GAP Insurance (if applicable) | $[[GAP Insurance Amount - or "0.00"]] |
| Other Fees / Charges | $[[Other Fees Description and Amount - or "0.00"]] |
| Subtotal (before tax and government fees) | $[[Subtotal Before Tax]] |
| Alabama State Motor Vehicle Sales Tax (2%) | $[[Alabama State Sales Tax Amount]] |
| County / Municipal Privilege License Tax | $[[County and Municipal Tax Amount]] |
| Alabama Title Fee | $[[Title Fee]] |
| Alabama Registration / Tag Fee | $[[Registration and Tag Fee]] |
| Other Government Fees | $[[Other Government Fees - or "0.00"]] |
| Total Amount Due | $[[Total Amount Due]] |
| Less: Deposit / Down Payment Paid | - $[[Deposit and Down Payment Amount - or "0.00"]] |
| Balance Due at Signing / Delivery | $[[Balance Due at Signing]] |
> Note on Alabama Motor Vehicle Sales Tax: Alabama imposes a 2% state sales tax on the purchase price of motor vehicles under Ala. Code § 40-23-100. County and municipal privilege license taxes (typically 1-2% additional, depending on the buyer's county and municipality of residence) are also collected at the time of registration. The total effective tax rate varies by location - verify the applicable rate for your county at the Alabama Department of Revenue.
> Note on Dealer Documentation Fee: Alabama does not impose a statutory cap on dealer documentation or preparation fees. Any dealer fee listed above is subject to Alabama's consumer protection statutes (Ala. Code §§ 8-19-1 et seq.). Buyers should confirm dealer fees are disclosed prior to signing.
Section 4 - Payment Method
Select one:
- [ ] Cash / Certified Check / Wire Transfer - Full balance of $[[Total Amount Due]] due at time of delivery.
- [ ] Dealer-Arranged Financing - See Section 5 (TILA Financing Disclosure) for complete terms.
- [ ] Outside / Third-Party Financing - Buyer has arranged financing through [[Buyer's Lender Name]]. Loan approval letter required prior to delivery. Lender's lien will be noted on title.
- [ ] Other: [[Describe Payment Method]]
Section 5 - Financing Disclosure (Truth in Lending Act - TILA / Regulation Z)
Complete this section only if the dealer is arranging or extending credit (retail installment sale). If paying cash or using outside financing, mark "N/A" and skip to Section 6.
> Federal Law Disclosure (15 U.S.C. § 1601; Regulation Z, 12 C.F.R. Part 1026): When a dealer extends credit or arranges a retail installment sale, the following disclosures are required by the Truth in Lending Act before the buyer signs.
| TILA Term | Amount or Rate |
|---|
| Annual Percentage Rate (APR) | [[APR]]% per year |
| Finance Charge (total cost of credit in dollars) | $[[Finance Charge]] |
| Amount Financed (net credit extended) | $[[Amount Financed]] |
| Total of Payments (sum of all scheduled payments) | $[[Total of Payments]] |
| Total Sale Price (total cost including down payment) | $[[Total Sale Price]] |
Payment Schedule:
| Number of Payments | Payment Amount | Payment Frequency | First Payment Due |
|---|
| [[Number of Monthly Payments]] | $[[Monthly Payment Amount]] | Monthly | [[First Payment Due Date]] |
Security Interest: The seller/lender retains a security interest in the vehicle described in Section 2 until all amounts are paid in full. The lien will be noted on the Alabama certificate of title.
Prepayment: The buyer [ ] may / [ ] may not pay the balance before it is due without penalty. If the buyer prepays, the buyer [ ] will / [ ] will not be entitled to a refund of part of the finance charge.
Late Charge: If a payment is more than [[Late Payment Grace Period (days)]] days late, the buyer will be charged $[[Late Fee Amount]] or [[Late Fee Percentage]]% of the overdue payment, whichever is greater.
> These figures are estimates if the loan has not been finally approved. Final TILA disclosures will be provided on the Retail Installment Sale Contract (RISC) at time of signing, which forms part of this agreement.
Section 6 - Federal Odometer Disclosure
> Federal Odometer Act (49 U.S.C. § 32705; 49 C.F.R. Part 580): Federal law requires the seller to disclose the vehicle's mileage upon transfer of ownership. Providing a false statement may result in civil penalties up to $10,000 per violation and criminal penalties including fines and imprisonment.
Vehicle Identification Number (VIN): [[Vehicle Identification Number]]
Odometer Reading at Transfer: [[Odometer Reading at Transfer]] miles
The seller certifies that to the best of their knowledge the odometer reading reflects:
- [ ] The actual mileage of the vehicle.
- [ ] Mileage EXCEEDS mechanical limits - Odometer is NOT the actual mileage. WARNING: Odometer has rolled over.
- [ ] Odometer reading is NOT the actual mileage - WARNING: Odometer discrepancy exists.
Seller Certification:
I, [[Seller Full Legal Name]], hereby certify the odometer reading stated above under penalty of law.
Seller Signature: ___________________________ Date: [[Date of Odometer Certification]]
Buyer Acknowledgment:
I, [[Buyer Full Legal Name]], have read and acknowledge the odometer disclosure.
Buyer Signature: ___________________________ Date: [[Date of Buyer Odometer Acknowledgment]]
Section 7 - Warranty / As-Is Status
Select one - this selection is binding:
Option A - As-Is / No Warranty (Most Common for Used Vehicles)
AS IS - NO DEALER WARRANTY
> The vehicle is sold AS IS. The dealer/seller makes no warranty, express or implied, regarding the vehicle's condition, fitness, or merchantability. The buyer assumes full responsibility for the vehicle from the moment of delivery.
> Implied Warranties Disclaimed: All implied warranties - including the implied warranty of merchantability (Ala. Code § 7-2-314) and the implied warranty of fitness for a particular purpose (Ala. Code § 7-2-315) - are DISCLAIMED to the fullest extent permitted by Alabama law (Ala. Code § 7-2-316) when made in writing in a conspicuous manner.
> FTC Used Car Rule (16 C.F.R. Part 455): Dealers selling used vehicles must display an FTC Buyers Guide on the vehicle. The signed Buyers Guide is incorporated by reference and controls over this agreement regarding warranty status if any conflict exists.
[ ] Buyer initials confirming As-Is purchase: ______ / ______
Option B - Dealer Limited Warranty
The vehicle is sold with a Dealer Limited Warranty as follows:
| Warranty Component | Coverage Period | Coverage Details |
|---|
| Powertrain (Engine, Transmission, Drive Axle) | [[Powertrain Warranty Period]] | [[Powertrain Coverage Details]] |
| Bumper-to-Bumper / Comprehensive | [[Bumper-to-Bumper Period]] | [[Bumper-to-Bumper Coverage Details]] |
| Other Components | [[Other Coverage Period]] | [[Other Coverage Details]] |
Deductible per repair visit: $[[Warranty Deductible]]
Option C - Manufacturer's Warranty (New or CPO Vehicle)
The vehicle is covered by the manufacturer's original or Certified Pre-Owned (CPO) warranty as described in the manufacturer warranty booklet provided at delivery.
Remaining Factory Warranty: [[Remaining Manufacturer Warranty Description]]
Section 8 - Trade-In Vehicle (if applicable)
| Field | Details |
|---|
| Year / Make / Model | [[Trade-In Year]] / [[Trade-In Make]] / [[Trade-In Model]] |
| VIN | [[Trade-In VIN]] |
| Odometer at Trade-In | [[Trade-In Odometer Reading]] miles |
| Existing Lien Holder | [[Trade-In Lender Name - or "None"]] |
| Estimated Payoff | $[[Trade-In Estimated Payoff - or "N/A"]] |
| Agreed Trade-In Allowance | $[[Agreed Trade-In Allowance]] |
The buyer certifies they are the legal owner of the trade-in vehicle and that the odometer reading above is accurate.
Trade-In Owner Signature: ___________________________ Date: [[Trade-In Signature Date]]
Section 9 - Cancellation Policy
> Alabama does not provide a statutory right to cancel a used-vehicle purchase after signing and delivery. Once this agreement is executed and the vehicle is delivered, the sale is final unless the dealer voluntarily offers a contractual cancellation option or the buyer has a legal rescission right under Alabama consumer-fraud law (Ala. Code §§ 8-19-1 et seq., Alabama Deceptive Trade Practices Act).
Dealer Cancellation Option (if offered):
- [ ] No cancellation option is offered. This sale is final upon signing.
- [ ] Dealer offers a voluntary cancellation option: The buyer may cancel within [[Cancellation Window]] business days of delivery by returning the vehicle in the same condition as delivered, subject to a cancellation fee of $[[Cancellation Fee]] or [[Cancellation Fee Percentage]]% of the purchase price. Written notice must be delivered to the dealer before the window expires.
Section 10 - Alabama DMV Title Transfer Steps
After this agreement is executed and the vehicle is delivered, the following steps must be completed to transfer title in Alabama:
- Seller signs the back of the title. The seller must sign the assignment section on the reverse of the Alabama (or out-of-state) certificate of title and complete the odometer disclosure on the title document.
- Buyer submits to county tax collector. Bring the signed title, this purchase agreement or bill of sale, a valid government-issued photo ID, and proof of Alabama liability insurance (minimum: 25/50/25 as of 2026) to the tax collector's office in the buyer's county of residence.
- Pay Alabama sales tax and fees. The buyer pays 2% state motor vehicle sales tax plus county/municipal privilege license tax on the purchase price, the Alabama title fee (currently $18.00), and registration fees based on vehicle weight.
- Receive new Alabama title and registration. The county tax collector issues a new Alabama certificate of title in the buyer's name and new registration plates (or transfers existing plates).
- Lien notation (if financed). The lender's name and address must be listed on the title application as the first lienholder. The lender holds the title until the loan is satisfied.
- Out-of-state titles. If the vehicle carries an out-of-state title, additional documentation may be required - contact your county tax collector or the Alabama Department of Revenue for current requirements.
> Fees and procedures are current as of June 2026. Verify current figures at the Alabama Department of Revenue: revenue.alabama.gov or your county tax collector's office.
Section 11 - Seller Representations
- Seller represents they have legal title to and authority to sell the vehicle and that it is free and clear of all liens except as disclosed in this agreement.
- Seller discloses the following known material defects or conditions: [[Known Defects or "None known to seller"]]
- Seller discloses the following accident or damage history: [[Accident or Damage History or "None known to seller"]]
- Seller discloses the following flood, fire, or salvage history: [[Flood Fire or Salvage History or "None known to seller"]]
Buyer has received (check all applicable):
- [ ] Signed copy of this Purchase Agreement
- [ ] FTC Buyers Guide (used vehicles sold by dealers)
- [ ] Odometer Disclosure Statement
- [ ] Retail Installment Sale Contract / TILA Disclosure (if financed)
- [ ] Extended Warranty / Service Contract (if purchased)
- [ ] GAP Insurance Agreement (if purchased)
- [ ] Manufacturer's Warranty Booklet (new or CPO)
Section 12 - Governing Law and Dispute Resolution
- This agreement is governed by the laws of the State of Alabama, including the Alabama Uniform Commercial Code (Ala. Code Title 7) and the Alabama Motor Vehicle Code (Ala. Code Title 32).
- Any dispute arising from this agreement that cannot be resolved informally shall be submitted to [[Dispute Resolution Method - e.g., binding arbitration or Alabama District Court]] in [[Venue City]], Alabama.
- If any provision of this agreement is found unenforceable, the remaining provisions remain in full force.
- This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral.
Section 13 - Signature Block
By signing below, both parties acknowledge they have read, understood, and agree to all terms of this Alabama Vehicle Purchase Agreement.
SELLER
Signature: ___________________________ Date: [[Date Seller Signs]]
Printed Name: [[Seller Full Legal Name]]
Title (if dealer): [[Seller Title - e.g., Finance Manager or General Manager]]
Dealer License #: [[Alabama Dealer License Number - or "N/A"]]
BUYER
Signature: ___________________________ Date: [[Date Buyer Signs]]
Printed Name: [[Buyer Full Legal Name]]
Address: [[Buyer Street Address]], [[Buyer City]], [[Buyer State]] [[Buyer ZIP Code]]
Driver's License #: [[Buyer Driver's License Number]] / [[Issuing State]]
CO-BUYER (if applicable)
Signature: ___________________________ Date: [[Date Co-Buyer Signs]]
Printed Name: [[Co-Buyer Full Legal Name]]
Address: [[Co-Buyer Street Address]], [[Co-Buyer City]], [[Co-Buyer State]] [[Co-Buyer ZIP Code]]
Driver's License #: [[Co-Buyer Driver's License Number]] / [[Issuing State]]
Section 14 - Notary Acknowledgment (Recommended for Private Party Sales)
Notarization is not required by Alabama law for a vehicle purchase agreement but is strongly recommended for private-party transactions.
State of Alabama
County of [[County Name]]
On this [[Day]] day of [[Month]], [[Year]], before me personally appeared [[Seller Full Legal Name]] and [[Buyer Full Legal Name]], known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.
Notary Public Signature: ___________________________
Notary Printed Name: [[Notary Full Name]]
My Commission Expires: [[Notary Commission Expiration Date]]
Notary Seal:
> ⚠️ Template example - not professional (legal/financial/medical) advice. This document is a general template for informational purposes only. Alabama sales tax rates, title fees, dealer regulations, and statutory requirements change frequently - verify all figures against current Alabama law and county tax collector requirements before use. TILA disclosures must be reviewed by a licensed finance professional. Implied-warranty disclaimers must be conspicuous under Ala. Code § 7-2-316. Consult a licensed Alabama attorney for transactions involving complex financing, disputes, or high-value vehicles. Sources verified as of June 2026: Ala. Code §§ 7-2-314 through 7-2-316, 8-19-1 et seq., 40-23-100; 49 U.S.C. § 32705; 49 C.F.R. Part 580; 15 U.S.C. § 1601; 12 C.F.R. Part 1026 (Regulation Z); 16 C.F.R. Part 455 (FTC Used Car Rule); Alabama Department of Revenue, Motor Vehicle Division.
