Document background
The Auto Loan Contract is a legally binding agreement used in Canadian jurisdictions when financing the purchase of a vehicle, whether new or used. It serves as the primary document establishing the lending relationship between a financial institution or auto financier and a borrower. The contract must comply with federal legislation such as the Interest Act and Bank Act, as well as provincial consumer protection laws and the Personal Property Security Act. This document is essential when a borrower needs financing to purchase a vehicle and includes critical information such as loan terms, interest rates, payment schedules, security interests, insurance requirements, and default remedies. It's designed to protect both lender and borrower interests while ensuring transparent disclosure of all financing terms as required by Canadian law.
