Car Installment Agreement Template for Saudi Arabia

The Car Installment Agreement serves as a crucial document in Saudi Arabia's automotive finance sector, facilitating vehicle purchases through structured payment plans that comply with Islamic finance principles. This agreement is essential when a buyer wishes to purchase a vehicle through installments rather than making a full upfront payment. The document incorporates all necessary elements required by Saudi Arabian Monetary Authority (SAMA) regulations, including clear payment terms, ownership provisions, and consumer protection measures. It is specifically designed to meet the requirements of Saudi Arabian law while ensuring Sharia compliance, making it suitable for both individual and corporate vehicle purchases. The agreement includes detailed specifications of the vehicle, payment schedule, insurance requirements, and maintenance obligations, providing a comprehensive framework for the installment purchase arrangement.

1. Parties: Identification of the seller/financier and the buyer/customer, including full legal names, addresses, and official identification numbers

2. Background: Context of the agreement, including the buyer's desire to purchase the vehicle through installments and the seller's willingness to sell

3. Definitions: Key terms used throughout the agreement, including technical, financial, and legal terminology

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

5. Purchase Price and Payment Terms: Total purchase price, down payment, number of installments, installment amounts, and payment schedule in compliance with Sharia principles

6. Delivery and Registration: Terms regarding vehicle delivery, registration process, and transfer of ownership

7. Title and Ownership: Provisions regarding retention of title until full payment and restrictions on disposal

8. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities

9. Buyer's Obligations: Responsibilities including maintenance, proper use, and compliance with traffic laws

10. Default and Remedies: Consequences of payment default and available remedies for both parties

11. Early Payment Provisions: Terms for early settlement of the installments and any applicable adjustments

12. Governing Law and Jurisdiction: Application of Saudi law and Sharia principles, jurisdiction for disputes

13. Notices: Methods and addresses for official communications between parties

14. General Provisions: Standard clauses including amendments, severability, and entire agreement