ABA Family Legal Guide

Automobiles

Buying, Renting, and Leasing a Car

Buying a New Car

Must a car contract be in writing?

Yes, for all but very inexpensive cars, according to the Statute of Frauds of the Uniform Commercial Code (UCC). The UCC, which is in effect in some form or another in every state but Louisiana, regulates sales of goods and securities; it governs many kinds of commercial transactions. This means that the UCC governs almost all auto transactions in the country. The UCC says any sale of goods of $500 or more must be in writing and signed by the party against whom enforcement is sought. If the contract is challenged, the courts will not be permitted to enforce it unless it is in writing.