Car Loan Agreement Template

This Car Loan Agreement, hereby known as the “Agreement,” is entered into and made on this day of (Enter date), hereby known as the “Effective Date,” by and between:

​[Borrower.FirstName][Borrower.LastName], with a mailing address of [Borrower.StreetAddress][Borrower.City][Borrower.State][Borrower.PostalCode], hereinafter known as the “Borrower,” and

​[Lender.FirstName][Lender.LastName], with a mailing address of [Lender.StreetAddress]​

​[Lender.City][Lender.State][Lender.PostalCode], hereinafter known as the “Lender,” who will collectively be referred to as the “Party” or “Parties.”

On the Effective Date, [Borrower.FirstName][Borrower.LastName] will purchase the Vehicle described in the agreement and agrees to pay [Lender.FirstName][Lender.LastName] (the “Lender”) the amount stipulated in this agreement.

Vehicle Details

Hereinafter the “Vehicle”.

Loan Amount

The Lender agrees to loan a principal amount of (Written.Loan.Amount) ($ Numerical.Loan.Amount) to the Borrower, which will incur interest on the original amount at (Written.Interest.Percentage.Amount) percent (Numerical.Interest.Percentage.Amount %) each month, for a total loan amount (Total.Written.Loan.Amount) ($ Total.Numerical.Loan.Amount).

Payment Terms

This agreement (the “Note”) shall be due and payable, including the principal and any accrued interest, on a monthly basis. The total amount borrowed is $(Enter payment) (the “Balance”). The Borrower shall make monthly payments of $(Enter amount) beginning on (Enter date) and to be paid on the (Enter day) of every month until the Balance is paid, ending on (Enter date). All payments made by the Borrower are to be applied first to any accrued interest and secondly to the principal Balance.

Interest

The Loan shall bear interest at a rate of (Insert percentage)%, calculated on a monthly basis and due at the time of repayment.

Late Payments

Payment shall be considered late if not made by (Enter time), (Time.Zone) on the (Enter day) calendar day of each month. All late payments are subjected to a late fee of $(Enter amount) OR (Enter percentage)%.

Collateral

The Borrower shall use (Enter item (Examples: Mortgage, Real Estate Property, Inventory)) if they default on their secured Loan to repay the Lender.

Non-Payment Penalties (Acceleration)

In the event that the Borrower doesn’t pay their Loan by the end of the Term or fails to make regular payments, Acceleration will occur. Upon Acceleration under this Agreement, the Lender shall have the right to declare the Loan balance immediately due and payable. Should the Borrower refuse, the Lender may seek legal action, claim the collateral, or reclaim the Vehicle.

Legal Fees

In the event that Acceleration occurs, the Borrower agrees to pay reasonable attorneys’ fees not exceeding a sum equal to the maximum usury rate in the State of [Borrower.State], of the then outstanding balance owing on the Loan, as outlined by this Agreement. Plus, reasonable expenses are to be made by the Lender as they exercise their rights and due remedies in court.

Severability

In the event any provision in this Agreement is held to be unenforceable, illegal, or invalid, it shall not affect the enforceability, legality, or validity of other provisions.

Waiver of Parties

The exercise of any power or right under this Agreement may be exercised at the discretion of the Party to which the benefit of that power or right occurs. Delaying or failure to exercise these rights or remedies does not prevent its exercise nor partial exercise to preserve further exercise of that power or right.

Governing Law

This Agreement follows the governing laws of the State of [Borrower.State].

Successors

This Agreement will be binding on and inure to the benefit of the permitted assigns and respective successors of both the Lender and Borrower.

Execution

IN WITNESS WHEREOF, the Parties agree that this Agreement will come into effect on (Enter date).