Private Car Sale Installment Agreement Template for Saudi Arabia

The Private Car Sale Installment Agreement is essential for transactions involving the sale of vehicles with deferred payment terms in Saudi Arabia. This document is typically used when a seller agrees to accept periodic payments for a vehicle instead of a full upfront payment, while maintaining certain rights over the vehicle until full payment is received. The agreement must comply with Saudi Arabian regulations, including the Finance Companies Control Law and Islamic financial principles, making it distinct from conventional vehicle financing agreements used in other jurisdictions. It includes comprehensive details about the vehicle, payment schedule, ownership rights, maintenance obligations, and default remedies, while ensuring all terms are Sharia-compliant. This document is particularly important in the Saudi Arabian market where installment-based vehicle purchases are common and require careful structuring to meet both legal and religious requirements.

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

2. Background: Context of the sale including the parties' intention to enter into an installment-based vehicle purchase agreement

3. Definitions: Key terms used throughout the agreement including Vehicle, Purchase Price, Installment Amount, Payment Date, etc.

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

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

6. Delivery and Transfer of Title: Terms regarding vehicle delivery, registration transfer, and retention of title until full payment

7. Buyer's Obligations: Responsibilities including maintenance, insurance, prohibited uses, and payment obligations

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

9. Default and Remedies: Consequences of payment default, repossession rights, and other remedies

10. Insurance Requirements: Mandatory insurance coverage and beneficiary requirements

11. Governing Law and Jurisdiction: Application of Saudi law and specification of jurisdiction for disputes