A car sales contract contains a lot of legal language that is well beyond the full understanding of an average consumer. Don’t let the lofty wording intimidate you or keep you from reviewing the contract in full. Instead, know what to look for and how to review the important information within a car sales contract. 
Car Price
The first thing to look at while reviewing a car sales contract is the final price you and the dealership or seller agreed upon. Just about everyone who buys a car haggles down the original asking price. Due to the changes made to the cost of a car throughout the negotiation process, making sure the sales contract reflects the price you agreed to is a vitally important step.
Add-ons, Fees, and other Charges
After checking the price for the car, review the other expenses being charged in the contract. These other expenses include optional features, processing fees, sales tax in some states, and other small surcharges. Some dealerships keep an itemized list of each charge but only list the final price within a sales contract. You can request a copy of the itemized worksheet along with your copy of the full loan contract and should review each charge before signing.
Payment
Cars are such a large investment that it's important that you reduce the cost of your car by making sure you pay the agreed price. Every car sales contract will indicate how you are paying for the used car. If you buying the car outright, which usually only happens in private used car sales, the contract should state exactly how much money is changing hands and that the entire price has been paid. In the event that you are only making a down payment on your used car and will finance the rest of the purchase, the sales contract should reflect that.
Warranties
Whether the purchase price of the car includes a warranty or you are paying extra for more inclusive coverage, the sales contract should contain that information. Review the details of the warranty in as much detail as possible and ask for documentation on what the warranty covers and when it becomes invalid. Warranty terms can be complex, so ask questions about any portions of the wording that aren't clear to you. Keep in mind that a used car described as being purchased “as is” within a sales contract is not covered by any service protection or warranty, unless otherwise indicated.
Car sales contracts contain lengthy formal language that keeps some shoppers from carefully reviewing all of the important information before signing. Make sure all prices and other terms are exactly what you agreed to before signing your name on a car sales contract.
*Image courtesy of freedigitalphotos.net
