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An auto loan agreement is a contract used to secure a loan by a buyer of a motor vehicle. The agreement establishes the names of the borrower and lender, the amount ($) that was borrowed, the length of the loan, how much the borrower needs to pay on a monthly basis, and other important terms.
How to Write a Car Purchase Agreement Payment information, including method, prices, and fees. Vehicle description and specifications (mileage, year, color, VIN, etc.) Terms and conditions. Buyer's representation, insurance, and tags. Full consent. Possible conditions of changes. State jurisdiction.
State what each side agrees to do. Clearly write out the terms of the loan. Include information about the date of the loan, the payment terms, interest, schedule of payments, late charges, default, and any other details in the agreement. Explain that the contract represents the entire agreement.
A payment agreement should always be in writing and include information regarding the type of payment to be given, when it should be given, how it will be paid, and what happens should the borrower default on the terms specified in the agreement.
You have many options for making payments. Set up automatic payments. You decide which savings or checking account you'd like the money to come from each month. ... Pay online. Sign on and select your auto loan from Account Summary. ... Pay by phone. ... Pay by mail. ... Pay in person. ... Other ways to pay. ... Additional principal payments.
Let's look at a quick example to illustrate the nature of a payment agreement. Person A (the debtor) borrows $5,000 from person B (the creditor). Both parties agree that person A must pay person B $1,000 a month over five months to repay the debt.