Car Installment Agreement Template for Philippines

The Car Installment Agreement is essential for vehicle purchases in the Philippines where buyers opt for financing rather than full payment. This document is designed to comply with Philippine consumer protection laws, financial regulations, and vehicle-related legislation, providing a legally sound framework for installment-based vehicle acquisitions. It details the complete terms of the purchase, including vehicle specifications, payment schedules, interest rates, insurance requirements, and ownership conditions. The agreement protects both the seller's and buyer's interests while ensuring compliance with local banking regulations and the Truth in Lending Act. It's particularly important for dealerships, financial institutions, and consumers engaging in vehicle financing transactions, serving as the primary legal document that governs the entire duration of the installment payment period.

1. Parties: Identification of the Seller/Dealer/Financial Institution and the Buyer/Purchaser with complete details

2. Background: Context of the agreement, including the intention to purchase the vehicle through installment payments

3. Definitions: Definitions of key terms used throughout the agreement

4. Vehicle Details: Complete description of the vehicle including make, model, year, color, engine number, chassis number, and other identifying details

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

6. Mode of Payment: Acceptable payment methods and payment processing details

7. Title and Ownership: Terms regarding transfer of ownership and retention of title until full payment

8. Delivery and Acceptance: Terms of vehicle delivery and acceptance conditions

9. Warranties and Representations: Warranties provided for the vehicle and representations made by both parties

10. Insurance Requirements: Mandatory insurance coverage requirements and terms

11. Default and Remedies: Events of default and available remedies for both parties

12. Repossession Rights: Terms and conditions for vehicle repossession in case of default

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

14. Governing Law: Specification of Philippine law as governing law and relevant jurisdictions

15. Dispute Resolution: Process for resolving disputes between parties

16. Termination: Conditions and process for agreement termination

17. Notices: How formal notices should be given between parties

18. General Provisions: Standard boilerplate provisions including severability, entire agreement, and amendments