Hire Purchase Agreement Motor Vehicle Template for Hong Kong

The Hire Purchase Agreement Motor Vehicle is a fundamental document in Hong Kong's vehicle financing landscape, essential for both commercial and consumer vehicle acquisitions. It's primarily used when a purchaser wishes to acquire a vehicle through structured payments rather than a single upfront payment. The agreement must comply with Hong Kong's Hire Purchase Ordinance (Cap. 244) and related regulations, including the Motor Vehicles Insurance (Third Party Risks) Ordinance. The document specifies the vehicle details, purchase price, deposit amount, installment schedule, interest rates, and various obligations of both parties. It's particularly important in protecting the finance company's security interest while ensuring the hirer's statutory rights are preserved. The agreement is commonly used by financial institutions, vehicle dealerships, and fleet management companies, requiring careful consideration of both financial and automotive aspects.

1. Parties: Identification of the finance company (owner) and the hirer, including full legal names, addresses, and registration numbers for companies

2. Background: Brief context explaining the hirer's desire to purchase the vehicle through hire purchase and the owner's agreement to provide financing

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Hire Purchase Price', 'Deposit', 'Installments', and other relevant terminology

4. Agreement to Purchase: Core terms of the hire purchase arrangement, including the total price, deposit paid, and agreement to pay installments

5. Description of Vehicle: Brief identification of the vehicle (detailed specifications in Schedule)

6. Payment Terms: Details of installment amounts, payment dates, interest rate, and payment methods

7. Title and Risk: Provisions regarding ownership retention by finance company until final payment and risk transfer to hirer

8. Hirer's Obligations: Requirements for vehicle maintenance, insurance, usage restrictions, and other ongoing obligations

9. Insurance Requirements: Mandatory insurance provisions complying with Motor Vehicles Insurance Ordinance

10. Default and Termination: Consequences of payment default, repossession rights, and early termination provisions

11. Representations and Warranties: Standard declarations by the hirer regarding capacity to enter agreement and understanding of terms

12. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction