Commonly used for farming tractors, utility tractors, industrial tractors, and construction tractors, tractor bills of sale indicate a transfer of tractor ownership if they bear the authentic signature of both the selling and the buying parties. Because tractors used for farming and other commercial purposes don’t always require government registration, the tractor bill of sale can serve as a primary sales receipt and proof of ownership.
What Is a Tractor Bill of Sale?
A tractor bill of sale catalogs the purchase of a specific tractor vehicle and allows for the transfer of ownership of that vehicle. These legally binding documents require a buyer to pay a specified price in exchange for tractor ownership and possession. Rather than stipulating a specific monetary amount, a tractor bill of sale can stipulate a specific trade of goods as a condition of ownership transfer.
Like all bills of sale, a tractor bill of sale is ordinarily signed by both seller and buyer immediately after the agreed-upon payment transaction is complete. In addition to serving as legal proof of purchase and right to ownership, tractor bills of sale are also valid and useful accounting documents.
What to Include in a Tractor Bill of Sale
- State of sale – The US state where the sale occurs.
- Pledge of transfer – Including buyer and seller names, the purchase price to which both parties have agreed, and the name of the party responsible for any applicable sales tax.
- Vehicle information – Including make, model, year, body style, color, vehicle identification number (VIN), odometer reading, and a restatement of the purchase price.
- Odometer disclosure statement – A section that restates the odometer reading and stresses the accuracy of this reading as a legal requirement.
- Seller’s contact information – Printed full name, address, telephone number, and email.
- Buyer’s contact information – Printed full name, address, telephone number, and email.
- Seller’s signature – Complete with the date of signature.
- Buyer’s signature – Complete with the date of signature.
How to Sell a Tractor
Step 1 – Prepare Your Tractor for Sale
Ensure your tractor operates and looks great by attending to any necessary mechanical and cosmetic repairs. If a buyer has to do little or nothing to get the tractor in tip-top condition, the tractor has a far better chance of selling quickly at an acceptable price. You’ll also want to clean your tractor very well, including pressure washing all dirt and debris off your tractor tires.
Step 2 – Collect the Necessary Paperwork
Review the title for your tractor and prepare it for transfer to a buyer. Find your owner’s manual, spec sheet, warranty documentation, and other relevant resources and important paperwork the new owner will need. You will also need to access your tractor VIN number to complete any sales transaction.
How to Find a Tractor VIN Number
Depending on the model, tractor VIN numbers can be found on the vehicle’s frame, engine block, dashboard, or doorjamb.
Step 3 – Include Compatible Tractor Attachments
If you’re like most tractor owners, your vehicle is powering multiple tools in the field or on the factory floor. If you want to attract more potential buyers and entice the most interested of them to commit to a purchase, include compatible equipment and attachments as part of the sale.
Step 4 – Reach Out to Prospective Buyers
Because the sale of heavy equipment such as tractors is a niche market, you may have to wait several months before finding a viable buyer. However, you can increase your market outreach by promoting your tractor on popular internet sales platforms such as TractorHouse.com and MachineryTrader.com. eBay is also a popular website for tractor sales. Because not all prospective buyers are online, you may also want to advertise your tractor in the local paper or on local swap sheets.
Step 5 – Negotiate a Fair Purchase Agreement
Post a fair asking price for your tractor to attract serious buyers. While the buyer may try to negotiate a lower price, you will be prepared to make a confident decision if you know the market value of your machine through accurate appraisal and/or market research.
How to Value Your Tractor
In addition to its brand reputation and original purchase price, the biggest factors impacting the asking price for your tractor are the structural and operational condition of your vehicle and the level of depreciation. The long-trusted automotive valuation organization Kelly Blue Books does not cover pricing for tractors or other forms of heavy equipment, but there are several online platforms (for example, FreeLinks) that apply the Kelly Blue Books valuation model to tractors.
Step 6 – Complete and Sign the Tractor Bill of Sale
After arriving at a final sale price with a reliable buyer, you will need to detail the specific terms of your purchase agreement in a bill of sale. After filling it out and ensuring that the stipulated payment has been made, the buyer and seller will sign the bill of sale to officially transfer ownership.
How to Write a Tractor Bill of Sale
As noted above, a valid and useful tractor bill of sale must include the names, contact information, and signatures of the parties involved in the sale, the date of the sale, and a description of the tractor. Elements to include in the tractor description include the make and model, the year it was produced, the VIN, and the odometer reading. The bill of sale should also include the purchase price of the vehicle. If the vehicle is a gift or negotiated through trade, the bill of sale must clearly state these facts.
A good tractor bill of sale will also include a section that certifies the legal transfer of ownership from the seller to the buyer and declares all information contained in the document to be correct under penalties of perjury. Other information to include on your tractor bill of sale is the vehicle’s existing license plate number and active warranty if either is applicable to the new owner.
Tractor Bill of Sale Sample
Below, you can download a tractor bill of sale template in PDF or Word format: