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:
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.
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 ($_____) [Instructions: Insert the installment payment
amount] payable on the ___________ [Instructions: Insert the day of each month that
payment is due] of each month, until paid in full. The entire Total Payment Amount, shall be
due and payable in full on or before ___________________ [Instructions: Insert the date that
the total payment amount is due] (the “Maturity Date”). Any amounts due hereunder that are
not paid by the Maturity Date as originally scheduled or deferred, including but not limited to
unpaid default or deferment charges, will be charged interest at the APR stated in the Financing
Terms until this Agreement is fully paid or reduced to judgment.
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b. All payments received by Seller shall be applied first to accrued fees and charges,
if any, and then to the combined total of principal and pre-computed interest until this Agreement
is fully paid. Payments shall be applied in the order in which they become due. The Finance
Charge has been pre-computed in advance at the APR on the scheduled unpaid principal
balances of the Amount Financed. Waiver of any default in payment of the Total of Payments
when due shall not operate as a waiver of any subsequent default. No extension of time of
payment or any other modification of the terms of this Agreement shall be binding on Seller
unless written consent thereto is given by an executive officer of Seller.
c. In the event that Buyer is more than ___________ (__) [Instruction: Insert the
maximum number of days Buyer may be late on a payment] days late on any installment
payment (whether in whole or in part), Buyer agrees to pay a delinquency charge in an amount of
the greater of ___________ percent (__%) [Instruction: Insert the interest rate that will be
added to late payments] of the amount unpaid or ___________ Dollars ($_____). [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
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
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
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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.
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
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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.
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.
__________ [Instructions: Insert name] __________ [Instructions: Insert name]
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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:
__________ [Instructions: Insert Name] __________ [Instructions: Insert Name]
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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:
___% $__________ $__________ $__________ $__________
[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
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.
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