Motor Vehicle Retail Installment Sales Contract for Germany

Motor Vehicle Retail Installment Sales Contract Template for Germany

This document is a standardized contract governed by German law that facilitates the sale of motor vehicles through installment payments. It incorporates requirements from German consumer protection laws, financial regulations, and automotive industry standards. The contract details the terms of sale, including vehicle specifications, payment schedule, interest rates, and security interests, while ensuring compliance with German Civil Code (BGB) and Consumer Credit Act (VerbrKrG). It provides essential consumer protections and clear financial terms while establishing the rights and obligations of both the dealer and the buyer throughout the installment payment period.

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What is a Motor Vehicle Retail Installment Sales Contract?

The Motor Vehicle Retail Installment Sales Contract is a crucial document used in German automotive sales when a buyer purchases a vehicle through installment payments rather than a single lump sum. This contract type is specifically designed to comply with German financial regulations, consumer protection laws, and automotive industry requirements. It includes detailed information about the vehicle, comprehensive payment terms, interest calculations, and security provisions as required by German law. The document is particularly important for dealerships and financial institutions operating in Germany, as it must conform to strict requirements under the German Civil Code (BGB) and Consumer Credit Act (VerbrKrG). It serves as both a sales agreement and a financing document, protecting the interests of all parties while ensuring regulatory compliance.

What sections should be included in a Motor Vehicle Retail Installment Sales Contract?

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

2. Background: Brief context of the transaction and the parties' intention to enter into an installment sales agreement

3. Definitions: Key terms used throughout the agreement, including technical and financial terminology

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

5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amount, payment schedule, and APR

6. Delivery and Transfer of Ownership: Terms regarding vehicle delivery, transfer of title, and registration requirements

7. Security Interest: Dealer's security interest in the vehicle until full payment is made

8. Insurance Requirements: Mandatory insurance coverage requirements and terms

9. Warranties and Representations: Standard warranties, disclaimers, and representations from both parties

10. Default and Remedies: Consequences of payment default and available remedies

11. Governing Law and Jurisdiction: Specification of German law application and jurisdiction

12. Notices: How formal communications between parties should be made

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

What sections are optional to include in a Motor Vehicle Retail Installment Sales Contract?

1. Trade-In Vehicle: Details of any vehicle being traded in as part of the purchase, used when there is a trade-in

2. Additional Services: Description of any additional services purchased, such as extended warranty or maintenance packages

3. Co-Signer: Terms relating to a co-signer, required when there is a co-signer on the loan

4. Early Payment Terms: Specific terms for early repayment options, included when early payment is allowed

5. Vehicle Modifications: Details of any agreed-upon modifications to be made to the vehicle before delivery

6. Special Orders: Terms specific to specially ordered vehicles, used when the vehicle is not from existing inventory

7. Export Restrictions: Restrictions on vehicle export, included for certain luxury or specialized vehicles

What schedules should be included in a Motor Vehicle Retail Installment Sales Contract?

1. Schedule A - Vehicle Condition Report: Detailed inspection report of the vehicle's condition at time of sale

2. Schedule B - Payment Schedule: Detailed amortization schedule showing all payments, interest, and principal

3. Schedule C - Vehicle Features and Equipment: Comprehensive list of vehicle features, accessories, and equipment

4. Schedule D - Warranty Documentation: Detailed warranty terms and coverage information

5. Appendix 1 - Vehicle Registration Documents: Copies of current registration documents and transfer forms

6. Appendix 2 - Insurance Requirements: Detailed insurance requirements and minimum coverage specifications

7. Appendix 3 - Vehicle Service History: Documentation of vehicle's service history and maintenance records

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Relevant Industries

Automotive

Financial Services

Retail

Insurance

Consumer Goods

Transportation

Banking

Relevant Teams

Legal

Finance

Sales

Compliance

Credit Risk

Customer Service

Documentation

Vehicle Registration

Operations

Dealership Operations

Relevant Roles

Sales Manager

Finance Manager

Legal Counsel

Compliance Officer

Automotive Finance Specialist

Dealership Manager

Credit Risk Manager

Contract Administrator

Sales Representative

Customer Service Manager

Documentation Specialist

Vehicle Registration Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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