Agreement for the sale of a used motor vehicle

Entered into between:


(name of seller)






(hereinafter caller “the seller”)



(name of purchaser)




(hereinafter caller “the purchaser”)


1. Sale and purchase

The Seller hereby sells to the Purchaser who hereby purchases upon the terms and conditions hereinafter set forth the motor vehicle described in the following schedule and hereinafter referred to as “the Vehicle”





2. Price and manner of payment

The price payable by the Purchaser to the Seller for the Vehicle is the sum of R _____ ( _________________________ rand) payable at to a deposit of R ________ ( _______________________ rand) upon the signing of this agreement and as to the balance of the purchase price by (state number) monthly installments of R ___________ ( ______________________ rand) each, payable on or before the first day of each and every month, commencing on the (day , month, year).

3. Place of payment

All payment shall be made to the Seller at his above address or at such other address in the Republic of South Africa as he may indicate in writing to the Purchaser.

4. Place where vehicle to be kept

The Purchaser shall inform the Seller in writing of the address at which the Vehicle is to be kept and shall not, while any portion of the purchase price remains unpaid, remove the Vehicle outside the jurisdiction of the magistrate’s court for the district of (specify) without the written consent of the Seller, which consent shall not be unreasonably withheld.

5. Insurance

The Purchaser shall at his own expense cause the Vehicle to be comprehensively insured with an insurance company approved by the Seller for at least an amount equal to the purchase price and shall notify the said insurance company of the Seller’s interest in the Vehicle.

6. Risk

The risk in the Vehicle shall forthwith pass to the Purchaser who shall remain to pay the full balance of the purchase price despite any damage to or depreciation, loss or destruction of the Vehicle from ever cause arising.

7. Restriction of purchaser’s rights

The Purchaser shall not sell, cede, assign, transfer of pledge the Vehicle or allow it to become subject to any lien of whatsoever nature or deliver possession thereof to any other person while any portion of the purchase price remains unpaid.

8. No warranties, representation

The Purchaser hereby agrees that no warranties or representations have been given or made as to the state, condition or fitness of the Vehicle which he takes with all fault and agrees to accept all risks of whatsoever nature.

9. Inspection

The Purchaser hereby acknowledge that the Vehicle is second hand, that he has inspected it and has satisfied himself that it is in good order and condition.

10. No waiver

No relaxation or indulgence granted by the Seller and no omission by the Seller timeously or diligently to enforce any right under this agreement shall be deemed to amount to a waiver of that or any other right.

11. Roadworthy certificate

The Seller shall take the necessary steps to render the Vehicle fit for a roadworthy certificate and shall deliver such certificate to the Purchaser prior to delivery of the Vehicle.

12. Registration

The Seller shall sign such forms and deliver to the Purchaser such documents as may be necessary to enable the Purchaser to register the Vehicle in his name.

13. Seller’s rights on purchaser’s default

Should the Purchaser fail to pay any installment punctually on due date or commit a breach of any of the provisions of this agreement, the Seller shall be entitled to claim payment of the full outstanding balance of the purchase price by action in the magistrate’s court for the district of (specify) which the parties hereto agree shall have jurisdiction notwithstanding the amount involved.

14. Costs

The costs of drawing this agreement shall be borne by the parties hereto in equal shares.

SIGNED at (place) on this (day, month, year)

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