Car Loan Contract Template for Belgium

The Car Loan Contract is a fundamental document in vehicle financing transactions within Belgium, essential for both financial institutions and consumers seeking to finance vehicle purchases. This document is used when a borrower requires financing to purchase a vehicle and a financial institution agrees to provide such funding under specific terms and conditions. The contract must comply with Belgian consumer credit legislation, including the Belgian Consumer Credit Act and Book VII of the Belgian Code of Economic Law, as well as relevant EU directives such as the Consumer Credit Directive 2008/48/EC. It includes crucial information about the loan terms, vehicle details, security arrangements, borrower obligations, and consumer protection provisions. The document is particularly important in the current market where vehicle financing is a common practice and regulatory compliance is strictly enforced.

1. Parties: Identification of the lender (financial institution) and the borrower, including full legal names, addresses, and registration/identification numbers

2. Background: Brief context explaining the borrower's request for a car loan and the lender's agreement to provide it

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms, parties' designations, and technical terms

4. Loan Details: Specific details of the loan including principal amount, interest rate, APR, total amount payable, and loan term

5. Vehicle Details: Complete description of the vehicle including make, model, year, VIN, color, and any specific features

6. Payment Terms: Details of payment schedule, installment amounts, payment methods, and due dates

7. Security and Ownership: Terms regarding vehicle ownership, registration of the lender's security interest, and insurance requirements

8. Borrower's Representations: Borrower's confirmations regarding their financial situation, intended use of the vehicle, and accuracy of provided information

9. Borrower's Obligations: Ongoing obligations including vehicle maintenance, insurance coverage, and notification requirements

10. Default and Remedies: Circumstances constituting default and the lender's rights and remedies in such cases

11. Early Repayment: Terms and conditions for early loan repayment, including any applicable fees or calculations

12. Governing Law: Confirmation of Belgian law as governing law and jurisdiction for disputes

13. Signatures: Execution block for all parties, including date and place of signing