Owner Finance Car Sale Contract Template for Philippines

The Owner Finance Car Sale Contract is essential when a vehicle seller in the Philippines provides direct financing to the buyer instead of requiring third-party financing through a bank or financial institution. This arrangement is particularly common in private vehicle sales, small dealerships, or situations where traditional financing options may not be available or desired. The document must comply with Philippine regulations including the Civil Code, Consumer Act, Truth in Lending Act, and Land Transportation and Traffic Code. It details the vehicle specifications, purchase price, financing terms, payment schedule, security arrangements, and both parties' obligations. This type of contract is especially useful for sellers willing to accept periodic payments while maintaining a security interest in the vehicle until full payment is received.

1. Parties: Identification of the Seller/Financier and the Buyer/Borrower with complete details including name, address, and government ID information

2. Background: Context of the transaction, establishing that this is an owner-financed vehicle sale

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

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

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

6. Title and Registration: Terms regarding the transfer of title, registration requirements, and retention of title until full payment

7. Security Interest: Establishment of the seller's security interest in the vehicle until full payment

8. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities

9. Buyer's Obligations: Maintenance requirements, usage restrictions, and other obligations of the buyer

10. Default and Remedies: Definition of default events and seller's remedies including repossession rights

11. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

12. Signatures and Notarization: Execution requirements and notarization provisions