Bill of Sale with Payment Plan
Selling to someone who'll pay over time? Set the price, down payment and months. You get the full schedule and a clause to paste into your bill of sale's special terms.
Monthly payment$750.00
Financed$6,000.00
Total paid$8,000.00
| # | Due | Payment | Interest | Balance |
|---|---|---|---|---|
| 1 | Oct 1, 2026 | $750.00 | $0.00 | $5,250.00 |
| 2 | Nov 1, 2026 | $750.00 | $0.00 | $4,500.00 |
| 3 | Dec 1, 2026 | $750.00 | $0.00 | $3,750.00 |
| 4 | Jan 1, 2027 | $750.00 | $0.00 | $3,000.00 |
| 5 | Feb 1, 2027 | $750.00 | $0.00 | $2,250.00 |
| 6 | Mar 1, 2027 | $750.00 | $0.00 | $1,500.00 |
| 7 | Apr 1, 2027 | $750.00 | $0.00 | $750.00 |
| 8 | May 1, 2027 | $750.00 | $0.00 | $0.00 |
Clause for your bill of sale
Buyer pays $2,000.00 on signing. The balance of $6,000.00, with no interest, is paid in 8 monthly installments of $750.00 due on the 1st of each month starting Oct 1, 2026. The Seller keeps the certificate of title until the final payment is received. If any payment is more than 15 days late, the Seller may declare the full balance due.
How to protect yourself
- Keep the title until paid, or record yourself as lienholder where your state allows it.
- Take a meaningful down payment. 20–30% gives the buyer a reason to keep paying.
- Require insurance naming you as loss payee.
- Write down what happens if they stop paying: late fees, acceleration of the balance, and return of the vehicle.
- Keep a payment log and give receipts for every installment.
Then paste the clause into the special terms box of the vehicle bill of sale and set "Paid by" to installments. If your deal is unusual, the clause helper there can reword it.
Questions people ask
Can you sell a car on a payment plan?
Yes. A private seller can accept installments. The safest structure is for the seller to keep the title (or be listed as lienholder) until the last payment arrives, and to put the schedule and late-payment terms in writing.
Who owns the car during the payment plan?
Whoever the paperwork says. If the seller keeps the title, the buyer has possession but not full ownership until paid. Some states let the seller be recorded as lienholder on the buyer's new title instead, which lets the buyer register the car.
Can I charge interest?
Yes, but stay under your state's usury limit (often 8–12% for private loans, higher in some states). Many private sellers charge none.
Who insures the car?
The buyer, from the day they take it. Require proof of insurance before handing over the keys, and consider being listed as a loss payee.