Free Car Loan Agreement Template
Car Loan Agreement
I. Introduction
A. Parties involved:
This Car Loan Agreement ("Agreement") is entered into on [Date of Agreement] between [Your Company Name], located at [Your Company Address], hereinafter referred to as the "Lender," and [Client Name], residing at 456 Oak Avenue, Anytown, USA, hereinafter referred to as the "Borrower."
B. Purpose of the agreement:
The purpose of this Agreement is to outline the terms and conditions under which [Your Company Name] will provide financing to John Smith for the purchase of a new or used vehicle.
C. Date of agreement:
This Agreement is effective as of [Date of Agreement].
II. Loan Details
A. Loan Amount:
[Your Company Name] agrees to provide a loan to [Client Name] of Ten Thousand Dollars ($10,000), to be used solely for the purchase of a vehicle.
B. Interest Rate:
The interest rate applicable to this loan shall be 5.25% per annum, compounded monthly.
C. Loan Term:
The term of the loan shall be 60 months, commencing on April 1, 2024, and concluding on March 1, 2029.
D. Repayment Schedule:
[Client Name] shall repay the loan in equal monthly installments of $190.49, beginning on May 1, 2024, and continuing on the same day of each successive month thereafter until the loan is fully repaid.
E. Late Payment Penalties:
In the event of a late payment, [Client Name] shall be subject to a late fee of $25 per occurrence.
III. Security
A. Description of the Vehicle:
The vehicle to be purchased with the loan proceeds is described as follows:
-
Make: Toyota
-
Model: Camry
-
Year: 2022
-
Color: Silver
-
Mileage: 20,000 miles
B. Vehicle Identification Number (VIN):
The Identification Number, specifically designated for vehicles and often referred to as the Vehicle Identification Number or VIN, for the given vehicle is recorded as 12345678901234567.
C. Condition of the Vehicle:
[Client Name] acknowledges that the vehicle is purchased in its current condition, and [Your Company Name] makes no representations or warranties regarding its condition.
D. Insurance Requirements:
[Client Name] is required to maintain comprehensive insurance coverage on the vehicle for the duration of the loan term, with [Your Company Name] named as a loss payee.
IV. Representations and Warranties
A. Borrower's Representations:
[Client Name] represents and warrants that:
-
The information provided in connection with this Agreement is true, accurate, and complete.
-
John Smith has the legal right and authority to enter into and perform this Agreement.
B. Lender's Representations:
[Your Company Name] represents and warrants that:
-
It has the legal right and authority to enter into and perform this Agreement.
V. Covenants
A. Borrower's Covenants: [Client Name] agrees to:
-
Use the loan proceeds solely for the purchase of the vehicle.
-
Maintain the vehicle in good condition and promptly repair any damages.
-
Keep the vehicle insured as required under Section III.D.
B. Lender's Covenants: [Your Company Name] agrees to:
-
Disburse the loan proceeds promptly upon satisfaction of all conditions precedent.
VI. Default
A. Events of Default:
Events of default under this Agreement shall include, but not be limited to, [Client Name]'s failure to make timely payments, breach of representations and warranties, or failure to maintain insurance coverage.
B. Remedies:
In the event of default, [Your Company Name] shall have the right to accelerate the loan, declare the entire outstanding balance due and payable, and pursue any other remedies available at law or in equity.
VII. Miscellaneous Provisions
A. Governing Law:
This Agreement shall be governed by and construed by the laws of the State of [State].
B. Entire Agreement:
This Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
C. Severability:
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
D. Notices:
All notices and other communications required or permitted under this Agreement shall be in writing and delivered personally or sent by certified mail, postage prepaid, to the addresses set forth above.
E. Amendments:
This Agreement is subject to amendments or modifications only in the instance that a written document outlining such changes exists. This document must be duly executed, which means it should bear the valid signatures of every party involved, substantiating their consent and participation in the process.
VIII. Signatures
In witness whereof, the parties have executed this Agreement as of the date first above written.
This Car Loan Agreement is hereby executed and effective as of the date first above written.
[Your Name]
[Your Company Name]
[Date Signed]
[Client Name]
[Date Signed]
