Car Installment Agreement Template for Australia

The Car Installment Agreement is essential for transactions where a vehicle is purchased through structured payments over time in Australia. This document is used when a borrower requires financing to purchase a vehicle and a credit provider agrees to extend credit secured against the vehicle. It must comply with the National Consumer Credit Protection Act 2009, the Personal Property Securities Act 2009, and other relevant Australian legislation. The agreement includes crucial details such as loan terms, interest rates, payment schedules, vehicle specifications, and security interests. It's particularly important for ensuring both parties' rights are protected and that all mandatory consumer credit disclosures are properly made. The document is commonly used by financial institutions, car dealerships, and private sellers who offer financing options.

1. Parties: Identifies the finance provider (credit provider), borrower (debtor), and their complete contact details

2. Background: Outlines the context of the agreement - that the borrower wishes to purchase the vehicle and the lender agrees to provide credit

3. Definitions: Defines key terms used throughout the agreement including 'Vehicle', 'Loan Amount', 'Interest Rate', 'Term', and 'Installment'

4. Loan Details: Specifies the principal amount, interest rate, term, and total amount payable as required by the National Credit Code

5. Payment Terms: Details the installment amount, payment frequency, payment method, and due dates

6. Vehicle Details and Security Interest: Describes the vehicle and establishes the security interest under the PPSA

7. Borrower's Obligations: Lists the borrower's responsibilities including vehicle maintenance, insurance, and prohibited actions

8. Insurance Requirements: Specifies required insurance coverage for the vehicle

9. Default and Enforcement: Defines events of default and the lender's enforcement rights

10. Early Repayment: Terms and conditions for early repayment including any fees

11. General Provisions: Standard clauses covering notices, amendments, governing law, and dispute resolution

12. Execution: Signature blocks and execution requirements