Car Purchase Installment Agreement Template for Saudi Arabia

The Car Purchase Installment Agreement is a crucial document used in Saudi Arabia when a vehicle is being purchased through installment payments rather than a single lump sum. This agreement is particularly important in the Saudi Arabian market, where installment purchases are common and must comply with both commercial regulations and Islamic finance principles. The document serves multiple purposes: it establishes the legal framework for the sale, protects the rights of both seller and buyer, ensures compliance with Saudi Arabian Monetary Authority (SAMA) regulations, and provides clear terms for payment schedules and ownership transfer. It includes specific provisions required by Saudi law regarding vehicle registration, insurance requirements, and security interests, while maintaining Sharia compliance in its financial structure. The agreement is commonly used by car dealerships, financial institutions, and individual buyers throughout Saudi Arabia.

1. Parties: Identification of the Seller (dealer/finance company) and the Buyer (purchaser), including full legal names, addresses, and official identification numbers

2. Background: Brief context explaining the Seller's ownership/right to sell the vehicle and the Buyer's desire to purchase it through installment payments

3. Definitions: Definitions of key terms used throughout the agreement, including 'Vehicle', 'Purchase Price', 'Installment Payment', 'Payment Date', etc.

4. Sale and Purchase: Core terms of the sale including vehicle details, total purchase price, and transfer of ownership conditions

5. Payment Terms: Detailed structure of installment payments, including down payment, number of installments, payment amounts, and due dates

6. Vehicle Delivery: Terms and conditions for the delivery of the vehicle, inspection procedures, and acceptance criteria

7. Title and Registration: Provisions regarding vehicle title, registration process, and ownership transfer procedures

8. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities for maintaining insurance

9. Security and Liens: Details of any security interest or lien on the vehicle until full payment is made

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

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

12. Governing Law and Jurisdiction: Specification of Saudi law as governing law and relevant jurisdiction for disputes

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

14. Entire Agreement: Standard clause confirming the agreement represents the complete understanding between parties