Vehicle Payment Plan Agreement Template for Philippines

The Vehicle Payment Plan Agreement is a crucial document used in the Philippines when a buyer wishes to purchase a vehicle through installment payments rather than a full upfront payment. This agreement is designed to comply with Philippine regulations, including the Consumer Act (Republic Act No. 7394), Truth in Lending Act (Republic Act No. 3765), and relevant BSP circulars. It details the complete terms of the vehicle financing arrangement, including purchase price, payment schedule, interest rates, security arrangements, and obligations of all parties involved. The document serves as both a sales contract and a financing agreement, protecting the interests of the seller/financing company while ensuring the buyer's rights are preserved in accordance with Philippine consumer protection laws. It is particularly important for establishing clear terms for default, remedies, and ownership transfer upon completion of payments.

1. Parties: Identifies and provides complete details of the seller/financing company and the buyer/borrower

2. Background: Establishes the context of the agreement and the parties' intention to enter into a vehicle payment plan

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

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

5. Purchase Price and Payment Terms: Details of the total purchase price, down payment, installment amounts, payment schedule, and interest rate in compliance with Truth in Lending Act

6. Security and Registration: Provisions regarding vehicle registration, chattel mortgage, and other security arrangements

7. Insurance Requirements: Mandatory insurance coverage requirements and terms

8. Warranties and Representations: Statements and guarantees made by both parties regarding the vehicle and their capacity to enter the agreement

9. Rights and Obligations: Detailed responsibilities of both parties during the term of the agreement

10. Default and Remedies: Circumstances constituting default and the corresponding remedies available to either party

11. Termination: Conditions and procedures for early termination or completion of the payment plan

12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and establishes jurisdiction for dispute resolution

13. Notices: Procedures for serving notices and communications between parties

14. Execution: Signature blocks and execution formalities