Owner Finance Vehicle Contract Template for United Arab Emirates

The Owner Finance Vehicle Contract is essential for transactions where the vehicle owner provides direct financing to the purchaser in the United Arab Emirates. This arrangement offers an alternative to traditional bank financing and is commonly used in both personal and commercial vehicle sales. The document must comply with UAE Federal Laws, including Commercial Transactions Law No. 18 of 1993, Consumer Protection Law No. 24 of 1999, and relevant traffic authority regulations. It includes comprehensive details about the vehicle, payment terms, security arrangements, insurance requirements, and conditions for title transfer. The contract can be adapted for both conventional and Islamic finance structures, making it versatile for various financing needs in the UAE market.

1. Parties: Identification of the Vehicle Owner/Financier and the Purchaser/Borrower with full legal names and details

2. Background: Context of the agreement including the intention to sell/purchase the vehicle through owner financing

3. Definitions: Key terms used throughout the agreement including Vehicle, Payment Terms, Security Interest, etc.

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, VIN, color, and current condition

5. Purchase Price and Payment Terms: Total purchase price, down payment, financing amount, interest rate/profit rate, payment schedule, and payment methods

6. Security Interest: Details of the security interest retained by the owner until full payment, including registration requirements

7. Insurance Requirements: Mandatory insurance coverage requirements and responsibilities for maintaining insurance

8. Maintenance and Use: Purchaser's obligations regarding vehicle maintenance and permitted use

9. Default and Remedies: Events of default and the owner's remedies including repossession rights

10. Transfer of Title: Process and conditions for the transfer of vehicle title upon completion of payments

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes