How do I purchase a car from a family member?

Welcome, and thank you for your question. My name is Gurney, and I'm the attorney who will be assisting you. I'm happy to draw on my years of experience as an attorney and former prosecutor to offer some guidance. It should only take me 3–5 minutes to reply.

Why thank you! :) Are there any specific conditions or contingencies you’d like to include in the written agreement with your dad?

You’re doing the right thing by wanting it clean and simple. Yes — you can handle this privately. Here’s what you’ll need:

What to have your dad sign

• Title (properly assigned to you — include odometer reading).
• Bill of Sale + Payment Plan/Promissory Note (since you’ll pay over time).
• Lien notation (recommended): Have your dad listed as lienholder on the title until it’s paid in full, or he keeps the title until payoff.
• Release of Liability: Your dad should file this so tickets or claims after the transfer don’t affect him.
• Smog/Safety Certificate if your state requires it.

Insurance & Taxes

• Insurance: Call your insurer with the VIN, garaging address, and all drivers (add your 17-year-old as a rated driver). List your dad as loss payee/lienholder until payoff.
• Registration/Taxes: Bring the title, bill of sale, ID, and proof of insurance, and pay the sales or use tax at the DMV. (Family “gift” rules differ — because this is a sale with payments, expect to pay tax on the sale price.)

Minor Title Note: Many states won’t allow a vehicle to be titled solely in a 17-year-old’s name or allow them to sign contracts. The safest option is to title it in your name (as the parent) and optionally list your son as a co-owner or permissive driver. Confirm with your DMV.

Template You Can Use

Private Vehicle Sale
Seller: [Dad’s full name, address]
Buyer: [Your full name, address]
Vehicle: [Year/Make/Model/VIN/Mileage]
Price: $[total]
Down Payment: $[amount] on [date]
Balance: $[amount] at $[monthly payment], due on the [day] of each month, 0% interest, final payment by [date].
Security/Lien: Buyer grants Seller a security interest in the vehicle; Seller to be recorded as lienholder until paid in full. Buyer must maintain full coverage insurance listing Seller as loss payee.
Condition: Vehicle sold as-is (no warranties).
Default: If Buyer is [X] days late, Seller may charge a late fee of $[amount] and, after written notice, may repossess under applicable law.
No transfer until paid in full without Seller’s written consent.
Signatures: Seller: ______ Date: ____ Buyer: ______ Date: ____
Odometer Disclosure attached.

Does that help?

Great question! The good news is that there aren’t strict parameters for creating an “official” form when doing a private car sale with payments — what matters is that the document is clear, complete, and signed.

Here are the key things that make it “official” enough to hold up:

• Written and Signed: Both buyer and seller must sign and date the document.
• Vehicle Details: Include the year, make, model, VIN, and mileage.
• Payment Terms: Spell out the total price, down payment, monthly payments, due dates, and final payoff date.
• Lien/Security Interest: Clearly state that the seller keeps a lien until full payment (and note this on the title if possible).
• Odometer Disclosure: Required for vehicles under 10 years old. Usually, the DMV provides a one-page form for this.
• Notarization: Not strictly required in most states, but notarizing both signatures adds credibility and helps in case of disputes.
• Attach to Bill of Sale: The payment plan or promissory note should be attached to the bill of sale for clarity.

There’s no single “official” template you must use — you can create your own as long as it contains all the required details and signatures. If you want extra peace of mind, have it notarized and file the lien with the DMV so your dad is officially listed as lienholder until it’s paid off.

Does that help?

Sure thing! I’m glad that helps. Did you have any other questions about this? I’ll be happy to help further.

Okay, until next time! You’re welcome back anytime.