Private Car Sale Installment Agreement Template for Philippines

The Private Car Sale Installment Agreement is a crucial legal document used in the Philippines when selling or purchasing a vehicle through periodic payments rather than a single lump sum. This document becomes necessary when private individuals or dealers arrange vehicle sales with payment terms extending over time. It must comply with several Philippine regulations, including the Maceda Law (RA 6552), the Consumer Act, and relevant BSP guidelines on financial transactions. The agreement typically includes comprehensive details about the vehicle, payment terms, interest rates, insurance requirements, and conditions for ownership transfer. It serves to protect both the seller's financial interest and the buyer's rights while ensuring a clear understanding of obligations throughout the installment period. This type of agreement is particularly important in the Philippine context, where installment purchases of vehicles are common and require careful documentation to ensure legal compliance and enforceability.

1. Parties: Identifies and provides complete details of the Seller and Buyer, including their full legal names, addresses, and contact information

2. Background: Briefly explains the context of the sale and confirms the Seller's ownership of the vehicle and the Buyer's intention to purchase on installment terms

3. Definitions: Defines key terms used throughout the agreement to ensure clear interpretation

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: Specifies the total purchase price, down payment, installment amounts, payment schedule, and interest rate in compliance with BSP regulations

6. Delivery and Transfer of Ownership: Details the conditions and timing for vehicle delivery and transfer of ownership documentation

7. Buyer's Rights and Obligations: Outlines the Buyer's responsibilities including maintenance, insurance, and prohibited actions

8. Seller's Rights and Obligations: Specifies the Seller's duties and rights throughout the installment period

9. Default and Remedies: Describes what constitutes default and the legal remedies available to either party

10. Insurance Requirements: Specifies mandatory insurance coverage and responsibilities for premium payments

11. Warranties and Representations: Details the warranties provided by the Seller and representations made by both parties

12. General Provisions: Standard contract clauses including governing law, notices, and amendment procedures