Car Sale Installment Agreement Template for Saudi Arabia

The Car Sale Installment Agreement is essential for automotive transactions in Saudi Arabia where vehicles are purchased through periodic payments rather than a single lump sum. This document is specifically designed to comply with Saudi Arabian regulations and Sharia law principles, making it suitable for both individual and corporate buyers. It includes comprehensive details about the vehicle, payment terms, ownership rights, and obligations of all parties involved. The agreement is particularly important in the Saudi market where installment purchases are common and must adhere to Islamic finance principles that prohibit conventional interest-based financing. This document type is typically used by car dealerships, financial institutions, and private sellers who need to document vehicle sales with installment payment arrangements in a legally compliant manner.

1. Parties: Identification of the Seller and Buyer with complete details including ID/commercial registration numbers

2. Background: Context of the sale and confirmation that the vehicle is owned by the seller and is being sold through installment payments

3. Definitions: Key terms used throughout the agreement including Vehicle, Installments, Payment Schedule, etc.

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

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

6. Delivery and Transfer of Title: Terms regarding vehicle delivery and transfer of ownership documentation

7. Buyer's Obligations: Responsibilities including timely payments, maintenance, insurance, and usage restrictions

8. Seller's Representations and Warranties: Guarantees regarding vehicle condition, ownership, and absence of encumbrances

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

10. Insurance Requirements: Mandatory insurance coverage and responsibility for maintaining insurance

11. Governing Law and Jurisdiction: Confirmation of Saudi law application and jurisdiction for disputes

12. Notices: Method and addresses for official communications between parties

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