Document background
The Car Installment Contract is essential for vehicle purchases in Singapore where buyers opt for financing through regular installment payments. This document, governed by Singapore law and particularly the Hire-Purchase Act, establishes the legal framework for the transaction. It specifies crucial elements including payment terms, interest rates, ownership conditions, and default provisions. The contract is commonly used by dealerships, financial institutions, and private sellers to facilitate vehicle sales while protecting the interests of all parties involved. It must comply with strict regulatory requirements including maximum loan-to-value ratios and loan tenure restrictions set by the Monetary Authority of Singapore.
