Sample Vehicle Loan Agreement between Two Parties

When it comes to taking out a vehicle loan, it`s important to have a legal agreement in place to protect both parties involved. This agreement outlines the terms and conditions of the loan, including the amount borrowed, the interest rate, and the repayment schedule. In this article, we`ll provide an example of a sample vehicle loan agreement between two parties.

Vehicle Loan Agreement

This agreement made on [date] between [Lender Name], hereinafter referred to as the “Lender,” and [Borrower Name], hereinafter referred to as the “Borrower.”

Loan Amount

The Lender agrees to loan the Borrower [amount borrowed] for the purpose of purchasing a [vehicle make and model]. The Borrower agrees to repay the loan amount in full, along with interest, according to the terms of this agreement.

Interest and Payment Schedule

The loan will carry an interest rate of [interest rate]. The Borrower will make monthly payments of [monthly payment amount] until the loan is paid in full. Payments will be due on the [due date] of each month.

Prepayment

The Borrower may make prepayments on the loan at any time without penalty.

Default

If the Borrower fails to make a payment on time, the loan will be considered in default. The Lender may take legal action to collect the outstanding balance, and the Borrower will be responsible for any collection fees or legal fees incurred by the Lender.

Security Interest

In consideration for the loan, the Borrower grants the Lender a security interest in the [vehicle make and model] until the loan is paid in full. If the Borrower defaults on the loan, the Lender may repossess the vehicle to satisfy the outstanding balance.

Governing Law

This agreement shall be governed by and construed in accordance with the laws of the state of [state]. Any legal action arising under this agreement shall be brought in the courts of the state of [state], and the parties hereby submit to the jurisdiction of such courts.

Entire Agreement

This agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, understandings, and agreements between the parties. This agreement may not be amended except in writing signed by both parties.

In Witness Whereof

The parties have executed this agreement on the date and year first above written.

[Lender Name] [Borrower Name]

[Signature] [Signature]