Vehicle Mortgage Agreement Sample

If you`re looking to buy a car, you might need a vehicle mortgage agreement to finance your purchase. This legal document outlines the terms of your loan and the responsibilities of both you and the lender. To help you get started, we`ve provided a sample vehicle mortgage agreement below.

Before we dive into the sample agreement, let`s cover some key terms you`ll see throughout the document:

– Borrower: This is you, the person who is taking out the loan to buy the vehicle.

– Lender: This is the person or institution that is providing the loan. In some cases, it might be the dealership where you`re buying the car.

– Collateral: In this case, the collateral is the vehicle you`re buying. If you default on the loan, the lender can repossess the car to recoup their losses.

– Principal: This is the amount of money you`re borrowing to buy the car.

– Interest: This is the cost of borrowing money. You`ll pay interest on top of the principal, and it`s usually expressed as an annual percentage rate (APR).

Now, let`s take a look at a sample vehicle mortgage agreement:

[DATE]

[NAME AND ADDRESS OF BORROWER]

[LENDER NAME AND ADDRESS]

Loan Amount: [PRINCIPAL AMOUNT]

Interest Rate: [APR]

Loan Term: [NUMBER OF MONTHS]

Collateral: [YEAR, MAKE, AND MODEL OF VEHICLE]

1. Payment Terms

Borrower agrees to make monthly payments of [PAYMENT AMOUNT] for [NUMBER OF MONTHS] months until the loan is paid in full. Payments are due on the [DUE DATE] of each month.

2. Late Payments

If Borrower is more than [NUMBER OF DAYS] days late on a payment, Lender may charge a late fee of [LATE FEE AMOUNT]. If Borrower is more than [NUMBER OF DAYS] days late on a payment, Lender may declare the loan in default.

3. Default

If Borrower defaults on the loan, Lender may repossess the collateral without notice. Borrower will be responsible for all costs associated with repossession and may be liable for any deficiency if the sale of the collateral does not cover the amount of the loan.

4. Insurance

Borrower agrees to maintain comprehensive and collision insurance on the collateral for the duration of the loan. Lender must be listed as a loss payee on the insurance policy.

5. Modifications

Any modifications to this agreement must be made in writing and signed by both Borrower and Lender.

6. Governing Law

This agreement shall be governed by the laws of [STATE NAME].

By signing below, Borrower and Lender agree to the terms of this vehicle mortgage agreement.

______________________________ ______________________________

[BORROWER NAME] [LENDER NAME]

______________________________ ______________________________

[BORROWER SIGNATURE] [LENDER SIGNATURE]

As with any legal document, it`s important to carefully review and understand all the terms of your vehicle mortgage agreement before signing. If you have any questions or concerns, don`t hesitate to ask your lender or consult with a legal professional.