Contract For Car Payments Template for Indonesia

The Contract For Car Payments is a crucial document used in Indonesian vehicle sales transactions where the purchase is not made in full upfront payment. This document is essential when structuring vehicle financing arrangements, whether through a financial institution or directly with a dealer. It must comply with Indonesian legal requirements, including the Civil Code (KUHPerdata), Consumer Protection Law (Law No. 8 of 1999), and relevant OJK regulations governing vehicle financing. The contract typically includes comprehensive details about the vehicle, payment terms, ownership rights, maintenance obligations, and default procedures. It's particularly important for protecting both the seller's/financier's security interest in the vehicle and the buyer's rights under Indonesian consumer protection laws. The document should be used whenever a vehicle purchase involves installment payments or financing arrangements in Indonesia.

1. Parties: Identification of the seller/financier and the buyer/borrower with complete legal names and addresses

2. Background: Context of the agreement including the intention to purchase/finance the vehicle

3. Definitions: Defined terms used throughout the agreement

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, VIN, color, and other identifying features

5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amounts, payment schedule, and interest rate

6. Payment Method: Accepted methods of payment, payment processing details, and due dates

7. Late Payment and Penalties: Consequences of late payments, penalty fees, and default procedures

8. Vehicle Ownership and Transfer: Terms regarding vehicle ownership during the payment period and transfer upon completion

9. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities

10. Maintenance and Use Requirements: Buyer's obligations regarding vehicle maintenance and permitted use

11. Default and Repossession: Circumstances constituting default and repossession procedures

12. Termination: Conditions for early termination and its consequences

13. Governing Law: Specification of Indonesian law as governing law and jurisdiction

14. Dispute Resolution: Process for resolving disputes between parties