This Vehicle Financing Agreement can be used between a buyer and seller of a vehicle when the buyer wants to finance the purchase of the vehicle. Customize the information of the parties, the vehicle’s specifications, the down payment, the monthly payment amount, the due date of monthly payments, and more. In addition, this agreement gives the seller the right to repossess the vehicle in the event of buyer’s default. This agreement is ideal for individuals or small businesses that want to finance a vehicle.
Vehicle Financing Agreement This Vehicle Financing Agreement can be used between a buyer and seller of a vehicle when the buyer wants to finance the purchase of the vehicle. Customize the information of the parties, the vehicle’s specifications, the down payment, the monthly payment amount, the due date of monthly payments, and more. In addition, this agreement gives the seller the right to repossess the vehicle in the event of buyer’s default. This agreement is ideal for individuals or small businesses that want to finance a vehicle. VEHICLE FINANCING AGREEMENT THIS VEHICLE FINANCING AGREEMENT (hereinafter referred to as the “Agreement”), is made on ______________________ [Instructions: Insert the date] by and between ___________________ [Instructions: Insert the Seller’s name] (hereinafter referred to as the “Seller”) of _____________________________________ [Instructions: Insert the Seller’s address] and ___________________ [Instructions: Insert the Buyer’s name] (hereinafter referred to as the “Buyer”) of _____________________________________. [Instructions: Insert the Buyer’s address] WHEREAS, Seller is the owner of the automobile described in Exhibit “A,” attached hereto and incorporated herein (the “Automobile”); and WHEREAS, Buyer wishes to acquire the Automobile from Seller pursuant to this Agreement, and subject to the terms and conditions hereof, Seller desires to transfer Seller’s entire right, title and interest in and to the Automobile to Buyer. NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Seller and Buyer hereby agree as follows: 1. SALE Upon execution of this Agreement, Seller hereby sells, transfers, assigns, delivers, sets over and conveys to Buyer and Buyer hereby purchases the following Automobile with accessories and equipment therein on the terms set forth herein. In connection therewith: (a) Seller shall deliver possession of the Automobile to Buyer and Buyer shall take possession of the Automobile immediately upon execution hereof at Seller’s address; (b) Seller shall convey title to the Automobile to the Buyer upon delivery of the Automobile to Buyer; and (c) Seller shall execute and deliver such further instruments and take such further actions as may be reasonably necessary to evidence more fully the transfer of ownership of the Automobile to Buyer. 2. FINANCING a. Buyer’s purchase of the Automobile is subject to the terms and conditions of the Federal Truth-in-Lending Disclosure Statement (the “Financing Terms”), set forth in Exhibit “B” hereof, attached hereto and incorporated herein. Buyer promises to pay the Total Payment Amount in ___________ (__) [Instructions: Insert the total number of installment payments] installments of ___________ Dollars ($_____) [Instructions: Insert the installment payment amount] payable on the ___________ [Instructions: Insert the day of each month that payment is due] of each month, until paid in full. The entire Total Payment Amount, shall be due and payable in full on or before ___________________ [Instructions: Insert the date that the total payment amount is due] (the “Maturity Date”). Any amounts due hereunder that are not paid by the Maturity Date as originally scheduled or deferred, including but not limited to unpaid default or deferment charges, will be charged interest at the APR stated in the Financing Terms until this Agreement is fully paid or reduced to judgment. © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 2 b. All payments received by Seller shall be applied first to accrued fees and charges, if any, and then to the combined total of principal and pre-computed interest until this Agreement is fully paid. Payments shall be applied in the order in which they become due. The Finance Charge has been pre-computed in advance at the APR on the scheduled unpaid principal balances of the Amount Financed. Waiver of any default in payment of the Total of Payments when due shall not operate as a waiver of any subsequent default. No extension of time of payment or any other modification of the terms of this Agreement shall be binding on Seller unless written consent thereto is given by an executive officer of Seller. c. In the event that Buyer is more than ___________ (__) [Instruction: Insert the maximum number of days Buyer may be late on a payment] days late on any installment payment (whether in whole or in part), Buyer agrees to pay a delinquency charge in an amount of the greater of ___________ percent (__%) [Instruction: Insert the interest rate that will be added to late payments] of the amount unpaid or ___________ Dollars ($_____). [Instruction: Insert the dollar amount that will be added to late payments] In addition, Buyer agrees to pay court costs, reasonable attorneys’ fees, and if permitted by law, reasonable collection agency fees incurred by Seller in enforcement of the terms and provisions hereof. d. Buyer agrees that, under the circumstances set forth below, Buyer shall be deemed in default of the Agreement and the Seller may, at its election, declare all of the unpaid installments of the Total of Payments and all other indebtedness secured hereby immediately due and payable, without notice or demand. In the event of such acceleration, Buyer shall be credited with the same rebate of unearned Finance Charge as for voluntary prepayment. i. any installment of the Total of Payments is not paid in full when due; ii. Buyer fails to comply with the terms of this Agreement; iii. the Automobile shall be lost, stolen, substantially damaged, destroyed, sold encumbered, concealed, levied upon, seized or forfeited; iv. Buyer shall die, be adjudged incompetent, or petition for bankruptcy; or v. Buyer shall fail to keep the Automobile fully insured for the entire term of this Agreement. e. In the event of prepayment of this Agreement in full at any time before the Maturity Date, Buyer shall receive a rebate of unearned Finance Charge computed on the Rule of 78s. 3. SECURITY INTEREST Seller retains and shall have a purchase-money security interest in the Automobile and all proceeds and accessions and in proceeds of insurance thereon until the Total of Payments and all future indebtedness for taxes, liens, repairs and premiums advanced by Seller hereunder are paid in full. © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 3 4. INSURANCE Buyer agrees to keep the Automobile fully insured against loss by fire, theft, collision and any other loss from physical damage risk to the collateral for the entire term of this Agreement in companies acceptable to Seller. Buyer shall furnish Seller with a policy or binder issued by a company acceptable to Seller on or before taking possession of the Automobile. All policies procured by Buyer shall provide that loss, if any, shall be payable to Buyer and to the Seller of this Agreement, as their respective interests may appear and a clause requiring insurer to give the Seller ___________ (__) [Instruction: Insert the number of the days] days written notice of cancellation. In the event of the failure of Buyer to insure said Automobile or to deliver a fully paid policy to Seller at the times and in the manner herein provided, or in the event of cancellation or expiration of any policy during the term of this Agreement without replacement by Buyer within ___________ (__) [Instruction: Insert the number of the days] days, such failure shall constitute an event of default hereunder. Seller shall have the option, but shall not be required, to procure such insurance for Buyer for the term of one year or for the remaining term of this Agreement, and to advance the premium therefore. Unless Buyer provides Seller with evidence of the insurance coverage required by this agreement, Seller may purchase insurance at Buyer’s expense to protect Seller’s interest. This insurance may, but need not, protect Buyer’s interests. The coverage that Seller purchases may not pay any claim that Buyer makes or any claim that is made against Buyer in connection with the collateral. Buyer may later cancel any insurance purchased by Seller, but only after providing Seller with evidence that Buyer has obtained insurance as required by this Agreement. In the event Seller is required to procure insurance, Buyer promises to pay the premiums advanced by Seller together with a Finance Charge thereon (computed at the APR per year in this Agreement) as additional indebtedness due hereunder. Buyer agrees to pay such additional indebtedness in equal installments for the remaining term of the Agreement and this amount shall be added to the Total of Payments. 5. DEFAULT Upon the occurrence of any event of default hereunder, including, without limitation, non- payment of any sums required to be paid under this Agreement, the parties shall have the rights and remedies provided in equity or at law, including, without limitation, the right of the Seller (a) to take immediate possession of the Automobile with or without judicial process, and for such purpose, to enter upon the premises where the Automobile may be located; (b) to give Buyer reasonable notice of the time and place of any public sale of the Automobile or of the time after which any private sale of the Automobile is to be made; (c) to dispose of the Automobile at public or private sale in accordance with said notice to Buyer and to buy at a public sale; and (d) to apply the proceeds of sale first to the reasonable expenses of re-taking, holding, preparing for disposition, processing and disposing of the Automobile, and to reasonable attorneys’ fees and legal expenses incurred by the Seller, and second, to satisfaction of the obligations secured by the security interest in the Automobile and third, to satisfaction of any subordinate security interest or subordinate lien in the Automobile if demand therefore is received by Seller before distribution of the proceeds is completed, and to account to Buyer for and pay to Buyer any surplus remaining. Buyer shall be liable for any deficiency. In the event of repossession of said © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 4 Automobile, any personal effects or property found therein will be held and/or disposed of. All rights and remedies of the Seller, whether provided for in this Agreement shall be cumulative. 6. MISCELLANEOUS a. This Agreement constitutes the entire agreement between the parties hereto with respect to the specific subject matter hereof and supersedes all prior agreements or understandings of any kind with respect to the specific subject matter hereof. b. In the event that any provision or part of this Agreement shall be deemed void or invalid by a court of competent jurisdiction, the remaining provisions or parts shall be and remain in full force and effect. c. Any modification to this Agreement must be in writing and signed by the parties or it shall have no effect and shall be void. d. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. e. No failure by either party to pursue any remedy resulting from a breach of any provision of this Agreement by the other party shall be construed as a waiver of that breach or as a waiver of any subsequent or other breach unless such waiver is in writing and signed by an authorized representative of the non-breaching party. f. This Agreement shall be governed in accordance with the laws of the State of _________________ [Instructions: Insert the state’s laws that will govern this agreement] applicable to agreements to be wholly performed therein, without giving effect to its laws governing conflict of laws. g. In the event of any dispute between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its attorney fees and costs. IN WITNESS WHEREOF, this Agreement has been signed and delivered by and on behalf of the parties hereto as of the date first set forth above. SELLER: BUYER: __________________________ __________________________ __________ [Instructions: Insert name] __________ [Instructions: Insert name] © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 5 EXHIBIT “A” DESCRIPTION OF AUTOMOBILE 1. Make. __________ [Instructions: Insert Make of Automobile] 2. Model. __________ [Instructions: Insert Model of Automobile] 3. Body Type. __________ [Instructions: Insert Automobile Body Type] 4. Year. __________ [Instructions: Insert Year of Automobile] 5. Color. __________ [Instructions: Insert Color of Automobile] 6. VIN. __________ [Instructions: Insert VIN of Automobile] 7. Odometer Disclosure. Federal and State law requires that Seller state the mileage of the Automobile upon any transfer of ownership. Failure to complete or providing a false statement may result in fines and/or imprisonment. a. Seller hereby states and declares that as of the date hereof, the Automobile’s odometer reads __________ [Instructions: Insert Mileage] miles (the “Odometer Reading”). b. Seller certifies that to the best of Seller’s knowledge, the Odometer Reading reflects the actual mileage of the Automobile. c. Seller certifies that the Automobile’s odometer was not altered, set back or disconnected while in Seller’s possession, and Seller has no knowledge of anyone else altering, setting back or disconnecting the odometer. Both Seller and Buyer acknowledge the above Odometer Disclosure: SELLER: BUYER: __________________________ __________________________ __________ [Instructions: Insert Name] __________ [Instructions: Insert Name] © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 6 EXHIBIT “B” FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENT ANNUAL FINANCE AMOUNT TOTAL TOTAL SALE PERCENTAGE CHARGE FINANCED PAYMENT PRICE RATE (APR) AMOUNT The dollar The amount of The total cost of The cost of your amount the credit credit provided The amount you your purchase on credit as a yearly will cost you. to you or on your will have paid credit, including rate. behalf after you have your down made all payment of: payments as scheduled. $__________ [Instructions: Amount] ___% $__________ $__________ $__________ $__________ [Instructions: [Instructions: [Instructions: [Instructions: [Instructions: Amount] Amount] Amount] Amount] Amount] Your Payment Schedule Will Be: No. of Payments Amount of Payments When Payments Are Due __________ [Instructions: $__________ [Instructions: __________ [Instructions: Amount] Amount] Amount] day of each month Security: You are giving Seller a security interest in the Automobile being purchased. Late Charge: If any payment is __________ [Instructions: Amount] days late or more, Seller may charge you a late charge in the amount of the greater of ___% of the amount late or $__________ [Instructions: Amount]. Prepayment: If you make full payment early, you may be entitled to a refund of part of the Finance Charge. Other Terms: See the Agreement for any additional information about non-payment, default, and any required repayment in full before the scheduled date, prepayment refunds and penalties and further information about security interests. © Copyright 2014 Docstoc Inc. registered document proprietary, copy not 7
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