Sample loan car purchase and sale agreement

What does a purchase and sale agreement for a secured car look like?

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If a vehicle is pledged to a credit institution, this does not mean that it is “excluded” from civil circulation. Transactions with cars that are pledged are successfully completed - vehicles are bought and sold, you just need to take into account some nuances.

So, if the seller does not pay before the sale of the pledged car with the bank, then the encumbrance along with the car will be transferred to the new owner. In this case, it is necessary to obtain the consent of the bank to carry out such an operation.

If the buyer is satisfied with the option of purchasing a vehicle that is pledged, for example, the seller cedes such property at a price below the market price, then the parties must prepare a purchase and sale agreement for the transfer of ownership.

Despite the fact that the law does not require mandatory notarization of this category of transactions, it is still better to resort to the services of a notary in order to minimize risks.

Sample of a standard purchase and sale agreement for a secured car

In terms of its legal structure, the purchase and sale agreement for a collateralized vehicle is no different from an ordinary similar agreement for the purchase and sale of transport, which is not burdened with collateral obligations.

The only difference will be that in order for the seller to sell the car, he must obtain prior permission for the transaction from the bank.

In practice, the parties may also provide for the following scenario:

The buyer transfers money to repay the loan to the seller;
The seller repays the loan and receives confirmation from the bank that the car is no longer pledged.

Thus, the buyer purchases a vehicle that is “clean” of third party rights.

How to document this?

If the option is chosen that the deposit is repaid with the buyer’s money, then the parties can pre-execute, for example, an interest-free loan agreement, subsequently reducing the price of the car transferred under the purchase and sale agreement by its value.

In the same case, if the pledge is retained, then the new owner of the car will become the legal successor under the pledge agreement.

In any case, the purchase and sale agreement itself must be drawn up in full compliance with the law, including all the necessary information:

Date and place of drawing up the contract;
Information about the parties to the transaction;
Subject of the agreement and identification of the subject, namely, the vehicle being transferred.

The subject is an essential condition of the transaction, therefore, information about it must be provided as complete as possible, in particular, indicating:

car make and model;
year of manufacture, manufacturer;
VIN;
engine number;
color;
other information from the PTS, as well as details of the PTS itself.

Sample contract for the purchase and sale of an ATV between individuals.

See what the purchase and sale agreement for a truck looks like here.

Here you should write on the basis of what documents the seller owns this car.

Information about whether the car is subject to encumbrance. If yes, then it is stated that the car is pledged to the bank (the pledge holder is identified), and that the rights and obligations under the pledge agreement are transferred to the buyer;

If there are no rights of third parties to the car, a corresponding entry about this is made in the contract.

5) Price and payment procedure, payment terms;
6) Rights and obligations of the parties;
7) Responsibility of the parties and force majeure circumstances excluding liability;
8) Procedure for terminating the contract;
9) Other conditions;
10) Details and signatures of the parties.

The contract is optional and the parties are free to include all the required conditions in it, the main thing is that they do not conflict with the law.

The nuances of buying a mortgaged car

When buying a mortgaged car there are certain risks, in particular:

Selling a car without the consent of the bank, which may lead to the seizure of the collateral. A buyer who does not know about the mortgage risks being drawn into lengthy legal proceedings;
Refusal by the seller of the transaction after the buyer repays the loan. To avoid this, it is best for the seller to choose trusted ones and use the services of lawyers when drawing up contracts.

Contacting a notary will significantly reduce probabilistic risks under the contract.

Buying a collateral car from a bank

Cars that have been repossessed can be sold directly by the credit institution. The prices for such cars are significantly lower than the market average, and the legal risks are much lower.

The agreement does not have any significant features.

At the same time, there is a risk that the car will not be in the best technical condition, since it is unlikely to have been properly cared for in the period after it was collected from the debtor.

Car purchase and sale agreement on credit

When concluding a contract for the purchase and sale of a car on credit, the buyer uses bank funds. The first step a buyer needs to take when buying a car using borrowed funds is to choose the make and model of the vehicle. It is worth considering that the interest rate for using bank loans to purchase a used vehicle will be slightly higher than a new one.

When purchasing a new car, the buyer goes to a dealer, who, in most cases, cooperates with a lending institution that provides loans for the purchase of cars. Thus, we can say that the buyer purchases a car from the bank, because after signing a loan agreement with the latter, the car becomes security for the borrower’s payment of loan funds (collateral).

Often, a car dealership offers the buyer free services to submit the necessary documents to the bank. The bank makes a decision to issue a loan within a few days. If the decision is positive, the bank employee notifies the buyer and seller, who enter into a standard car purchase and sale agreement. The agreement is drawn up in three copies: one each for the seller, the buyer and the credit institution. Based on this agreement, the bank enters into a loan agreement for the purchase of a car with the borrower. The buyer, independently or through the dealership employees, registers the car with the traffic police.

The vehicle becomes the buyer's property only after full compliance with the terms of the loan agreement. The loan agreement is drawn up in two copies: one each for the lender and the borrower.

How to draw up a contract for the purchase and sale of a car on credit?

The number of “credit” cars is increasing every day. But not everyone can fully repay their debt to the bank. How to resell a car under a purchase and sale agreement if it is pledged to the bank?

The seller has several options:

• Find a buyer yourself;

• Contact a bank for help (the financial institution will look for a buyer);

• Re-issue the loan to a third party.

The purchase and sale agreement for a used car (pledged) is a classic agreement. The buyer signs a standard form, pays the agreed amount, and the seller repays the debt to the bank and partially returns his money. Of course, there will be losses, but they are insignificant. In this case, the seller’s obligations under the purchase and sale agreement include repaying the debt in full to the financial institution within the established time frame. Selling a car yourself is the most profitable way, but the seller does not always have enough time, because finding those who want to buy a credit car is not so easy.

The bank has a much better chance of finding potential buyers. The broker will cope with this task much faster than the owner of the car, but the losses will be more significant - about 25% of the cost of the car. In this case, the owner of the car, in principle, is not involved in either selling or drawing up a sales contract.

Re-issuing a loan to the buyer is also a common method. But there is one unpleasant moment here - the buyer will have to prove his solvency. In fact, you go through the same procedure as for a standard loan application. You will have to collect a full package of documents, obtain the bank’s consent, and only then register the car. If you agree, the financial institution issues a title, you register the car with the traffic police and, accordingly, become the new owner of the car (and debtor). If the bank refuses to reissue the loan, you can apply for a consumer loan and pay money to the seller + bank for the vehicle.

How to sell a car under a sales contract?

Any property that is pledged can only be sold after the pledgee gives permission for the transaction. Banks are willing to accommodate their clients, because it is extremely important for them to get their money back, and who will return it is a secondary question.

If for some reason the above methods are not suitable for the seller or buyer, then you can use the procedure for changing the collateral. The operating principle is as follows:

• The owner of the car has any property, for example, a house or apartment;

• He goes to the bank and provides his property as collateral for a car loan;

• After this, he draws up a contract for the sale and purchase of a car (free of charge or with the help of a notary);

• He deposits the proceeds from the sale of the car into the bank and removes the encumbrance from his property.

Of course, this is a longer and more complicated method, but in some situations it is the only possible option to get money quickly and without “enormous” losses in the form of bank commissions for sales.

How to secure a transaction? We conclude the correct car purchase and sale agreement

For a buyer who has decided to fully repay the debt to the bank and pay the full amount to the seller, we recommend entering into a transaction only after the main points have been settled:

1. Contact the bank yourself, take a statement with the balance of the loan debt;

2. Pay this amount to a financial institution and take a receipt from the seller indicating that the funds were transferred to the bank in full towards the redemption price for the car (detailed description of the vehicle);

3. Execute the purchase and sale agreement and transfer the remaining amount to the seller. If we are talking about cash, then take a receipt for receipt of funds.

If you do not have the opportunity to handle the transaction yourself, entrust it to your relative or friend. Of course, he must have a power of attorney indicating his powers. A simple written form of power of attorney is acceptable, as is the form of a car purchase and sale agreement. Both documents must contain the full names of the parties and a description of the subject of the transaction. The agreement should also indicate the cost of the vehicle and the calculation procedure, the rights and obligations of each party, details of title documents, etc.

There is no need to waste time searching for a suitable agreement on the Internet or money on a lawyer - just use the ProstoDocs constructor. The service operates automatically. All you need to do is answer the questions and then print out a ready-made and legally binding agreement. Enjoy the benefits of the service!

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Loan agreement (purchase of a car)

Author of the document

LOAN AGREEMENT No. ________

_____________ “__”_________ 20___

Joint-stock commercial bank _____________________________________________, hereinafter referred to as the “BANK”, represented by _____________________________________________, acting on the basis of _______, on the one hand, and gr. ___________________________________, passport ser. _____ No. _________, issued by __________________ __.__.____, hereinafter referred to as the “BORROWER” on the other hand, have entered into this agreement as follows:

1. THE SUBJECT OF THE AGREEMENT

1.1. The BANK provides the BORROWER with a loan on the terms determined by this agreement and subject to the availability of available credit resources, and the BORROWER undertakes to accept and pay the loan in accordance with the terms of this agreement.

1.2. The BANK provides the BORROWER with a loan in the amount of ___________ (______________________________) rubles, including:

in the amount of _____________ (_______________________) rubles for the purchase of a Car, hereinafter referred to as “Car”.

Make vehicle model No.

1.3. In the process of using the loan, the BORROWER undertakes to comply with the principles of lending: urgency, repayment, targeted nature, payment, material security.

2. LOAN CONDITIONS

2.1. The BANK provides a loan for a period of up to “__” ________ 20__. (inclusive).

2.2. To account for the loan received by the BORROWER, the BANK opens a loan account No. ____________________ (hereinafter referred to as the “loan account”).

2.3. The loan is issued at a time by transferring funds to the BORROWER's deposit account No. ___________________________ opened in JSCB _________________, operating in the “On Demand” deposit mode.

The loan is issued after:

1) payment by the BORROWER of the commission determined in clause 3.3. actual agreement;

2) providing the BANK with the documents necessary to formalize a pledge agreement for a Car purchased on credit;

2.4. Proper fulfillment by the BORROWER of loan obligations under this agreement is ensured by:

pledge of the Car purchased under this agreement, in accordance with the pledge agreement for the Car No. ______ dated “__” __________ 20__.
guarantee f.l. ___________________, according to the guarantee agreement No. _____ dated “__” ________ 20__.

2.5. In case of extension of the validity period of this agreement, the list of property constituting the subject of pledge is revised accordingly.

3. CONDITIONS OF SETTLEMENTS AND PAYMENTS

3.1. For using the loan within the period established in clause 2.1. agreement, the BORROWER undertakes to pay the BANK interest accrued at the rate of __% per annum on the amount of the loan debt.

3.2. In the event of a change in the market conditions for credit resources, as well as a change in the refinancing rate of the Bank of Russia, the BANK has the right to unilaterally change the interest rate on the loan. The new interest rate is applied: if increasing - thirty calendar days from the date of sending a registered letter to the BORROWER, if decreasing - from the day the BANKS made a decision to reduce the interest rate without notifying the BORROWER.

3.3. For issuing a loan, the BORROWER pays the Lender _________ (___________________________) rubles (at a time). The specified amount is subject to payment by the BORROWER before the loan is issued under this agreement.

3.4. In case of late repayment of the loan, the BORROWER pays the BANK increased interest at a rate of 44% per annum on the amount of the loan debt. If the circumstances specified in clause 3.2 of this agreement occur, the annual percentage paid in case of late repayment of the loan increases in proportion to the increase in the loan fee.

3.5. Loan repayment is made by the Borrower:

monthly in equal installments starting from the 1st day of the month following the month the loan was received no later than the 10th day of the month following the payment month. The last scheduled payment is made no later than the date specified in clause 1.1 of this agreement.

Payment of interest for using the loan is made by the Borrower monthly no later than the 10th day of the month following the payment month, as well as simultaneously with the repayment of the loan, including the final one.

3.6. The countdown of the period for calculating interest for using a loan begins from the day the debt is created on the loan account at the beginning of the operating day and ends with the date of repayment of the debt (inclusive). When calculating interest, the actual number of calendar days is taken, and the actual number of calendar days in a year is taken as the base (365 or 366 days, respectively).

3.7. The countdown of the period for accrual of increased interest begins from the date no later than which the payment must be made and ends with the date of payment (inclusive).

3.8. The amounts contributed (transferred) to repay the debt under this agreement, increased interest, are sent, regardless of the purpose of the payment specified in the payment document, in the following order:

for payment of overdue interest;
for payment of urgent interest;
for payment of overdue loan debt;
to repay the current loan debt.
The BORROWER grants the BANK the right to independently change the order of payment.

4. RIGHTS AND OBLIGATIONS OF THE PARTIES

4.1. The BORROWER undertakes:

4.1.1. Before issuing a loan, insure your life and health against accidents and illnesses in the amount of ______________ (___________________________) rubles for a period of one year, as well as your car against the risks of loss and damage in the amount of __________ (________________________) rubles for a period of one year, by concluding an insurance contract where the Creditor will be indicated as the first beneficiary, promptly (no later than the expiration date of the previous insurance policy/insurance agreement) to renew insurance(s) until the obligations under this agreement are fully fulfilled and within the same time frame to conclude/re-conclude a tripartite agreement(s) ) between the insurance company, the lender and the borrower on the procedure for working with insurance compensation. The terms of the insurance contract must be agreed upon with the Lender.

When extending insurance, the insured amount may be changed by agreement with the Lender.

4.1.2. Comply with the terms of the pledge agreement for Car No. _____ dated “__” _________ 20__.

4.1.3. Within three days, notify the BANK of changes in the registration address (registration), actual place of residence, work, last name or first name and the occurrence of circumstances that could affect the BORROWER’s fulfillment of obligations under this agreement.

4.2.1. Control the intended use of the loan by the BORROWER.

4.2.2. According to documents and actually check the presence, safety, general condition and quality of the collateral.

4.2.3. Require the BORROWER to take measures necessary to ensure the safety of the Car.

4.2.4. Foreclose on the Car specified in clause 1.2. of this agreement and pledged by the BANK, by a court decision, as well as out of court in accordance with Article 349 of the Civil Code of the Russian Federation on the basis of this agreement: THE BORROWER undertakes to transfer to the BANK the car pledged by the BANK within fifteen days from the date of receipt of the BANK’s notification about the need to repay the debt.

4.2.5. In case of failure to fulfill loan obligations within the terms established by this agreement, the BANK has the right to foreclose on the pledged and other property owned by the BORROWER, which may be foreclosed by law.

4.2.6. If the following cases occur, send to the BORROWER a request for early repayment of all debt under the agreement or transfer of the pledged Car to the BANK:

1) the occurrence of overdue debt on the loan or accrued interest;

2) using the loan for purposes other than its intended purpose;

3) violation of the terms of the pledge agreement, operating procedures or deterioration of the technical condition of the pledged Car;

4) re-pledge of the Car without the consent of the BANK;

5) loss of loan collateral;

6) if the information or other information provided by the BORROWER to the BANK in accordance with the terms of the loan is unreliable;

7) if the BORROWER is brought with a claim for payment of a sum of money or for the recovery of property, the amount of which jeopardizes the BORROWER’s fulfillment of obligations under this agreement;

8) in case of loss of the BORROWER’s ability to work;

9) if the BORROWER intends to change or has already changed his place of residence to another region/region;

10) violation of the conditions of clause 4.1.2. actual agreement.

4.2.7. In case of failure to repay the debt and the BORROWER evades the voluntary transfer of the pledged Car to the BANK within 10 days from the date of sending the request specified in clause 4.2.6. agreement, the BANK has the right to seize the Car for the purpose of its safety until the issue of the procedure for repaying the debt is resolved: through the sale of the Car or otherwise. If no agreement is reached, the Car is sold in the manner specified in the Car pledge agreement, and the proceeds are used to pay off the debt.

5. RESPONSIBILITY OF THE PARTIES

5.1. The BORROWER is not exempt from repaying the principal debt and paying interest and increased interest upon the occurrence of any circumstances, including force majeure, including force majeure.

5.2. The BORROWER is responsible for its obligations to the BANK with all its property.

6. CONSIDERATION OF DISPUTES

6.1. All disputes and disagreements that may arise during the execution of this agreement or in connection with it are resolved, if possible, through negotiations between the Parties. If it is impossible to resolve disagreements out of court, the dispute is subject to judicial review at the location of the CREDITOR, depending on the amount of claims (Contractual jurisdiction).

7. SPECIAL CONDITIONS

7.1. The BANK has the right to fully or partially assign its rights and obligations under this agreement, as well as under transactions related to securing the repayment of the loan, to another person without the consent of the BORROWER.

7.2. Changes and additions to this agreement (except for clauses 3.2., 3.4., 4.2.6.) have legal force if they are signed by authorized representatives of the Parties.

7.3 The BORROWER does not have the right to fully or partially assign its rights and obligations under this agreement, as well as under transactions related to securing the repayment of the loan, to another person without the consent of the BANK.

7.4 This agreement is drawn up in 2 copies having equal legal force, one for each party.

7.5 This agreement comes into force from the moment it is signed and is valid until the Parties fully fulfill their obligations under it.

Appendices that are an integral part of this agreement.

Car pledge agreement No.______ dated “___” ___________ 20__
guarantee agreement f.l. ___________________, No. _____ dated “___” _________ 20___

How to draw up a purchase and sale agreement for a credit car with the buyer repaying the loan

We plan to buy a credit car, which is pledged to the bank, we undertake to pay the seller 200,000 and repay his loan, how to draw up a purchase and sale agreement correctly

In the subject of the agreement, state what amounts must be paid and within what time frame. Indicate how long it will take for the encumbrance to be lifted.

Civil Code of the Russian Federation Article 454. Sales and purchase agreement

1. Under a purchase and sale agreement, one party (seller) undertakes to transfer the thing (goods) into the ownership of the other party (buyer), and the buyer undertakes to accept this product and pay a certain amount of money (price) for it.
2. The provisions provided for in this paragraph apply to the purchase and sale of securities and currency values, unless special rules for their purchase and sale are established by law.
3. In cases provided for by this Code or other law, the specifics of the purchase and sale of certain types of goods are determined by laws and other legal acts.

4. The provisions provided for in this paragraph apply to the sale of property rights, unless otherwise follows from the content or nature of these rights.
5. For certain types of purchase and sale agreements (retail purchase and sale, supply of goods, supply of goods for government needs, contracting, energy supply, sale of real estate, sale of an enterprise), the provisions provided for in this paragraph apply, unless otherwise provided by the rules of this Code on these types of contracts.