The Car Purchase Installment Agreement is a specialized contract used in Germany when a vehicle is being purchased through installment payments rather than a single lump sum. This document is essential for dealerships, financial institutions, and buyers engaging in financed vehicle purchases, combining elements of both sales and credit agreements. It must comply with strict German consumer protection laws, including the BGB and VerbrKrG, particularly regarding mandatory disclosures, cooling-off periods, and form requirements. The agreement should be used whenever a vehicle purchase involves financing through the dealer or a third-party financial institution, and it includes crucial details about the vehicle, payment terms, interest rates, ownership transfer conditions, and buyer's rights. It's particularly important in the German market where consumer protection in financial transactions is heavily regulated and specific documentation requirements must be met for the agreement to be legally enforceable.

1. Parties: Identification of the seller (dealer/finance company) and buyer, including full legal names, addresses, and registration details

2. Background: Brief context of the transaction and relationship between the parties

3. Definitions: Definitions of key terms used throughout the agreement, including financial terms as required by German consumer credit law

4. Vehicle Description: Detailed description of the vehicle including make, model, year, VIN, mileage, and condition

5. Purchase Price and Payment Terms: Total purchase price, down payment, financing amount, interest rate (APR), monthly payment amount, and payment schedule

6. Delivery and Transfer of Ownership: Terms regarding vehicle delivery, transfer of title, and retention of ownership until full payment (Eigentumsvorbehalt)

7. Registration and Insurance: Requirements for vehicle registration and mandatory insurance coverage

8. Warranties and Representations: Vehicle warranties, statutory warranties, and representations about the vehicle's condition

9. Default and Remedies: Consequences of payment default and available remedies for both parties

10. Right of Withdrawal: Mandatory 14-day withdrawal right (Widerrufsrecht) and its exercise procedures

11. General Terms: Standard contract terms complying with German AGB-Recht requirements

12. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction

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