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Car Hire Purchase Agreement for Indonesia

Car Hire Purchase Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes the terms and conditions for the hire purchase of a motor vehicle. The document outlines the financial arrangement where the hirer gains possession of the vehicle while making periodic payments, with the seller retaining ownership until all payments are completed. It incorporates requirements from Indonesian financial regulations, consumer protection laws, and specific provisions from the Law on Fiduciary Security (UU No. 42/1999) and OJK regulations governing financing companies.

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Car Hire Purchase Agreement

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What is a Car Hire Purchase Agreement?

The Car Hire Purchase Agreement is essential for transactions where vehicles are purchased through installment payments in Indonesia. This document type is commonly used by financial institutions, automotive dealers, and leasing companies to facilitate vehicle financing while protecting the interests of all parties involved. The agreement must comply with Indonesian financial services regulations, particularly OJK requirements and the Law on Fiduciary Security. It typically includes detailed provisions for payment terms, vehicle specifications, ownership rights, maintenance obligations, and default procedures. The document is structured to accommodate both individual and corporate hirers, with flexibility to include additional provisions such as guarantees or special payment arrangements when required.

What sections should be included in a Car Hire Purchase Agreement?

1. Parties: Identification of the Seller/Finance Company and the Purchaser/Hirer with complete legal names and addresses

2. Background: Context of the agreement including brief description of the transaction and purpose

3. Definitions: Definitions of key terms used throughout the agreement

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, engine number, chassis number

5. Purchase Price and Payment Terms: Total purchase price, down payment, installment amounts, payment schedule, and interest rate

6. Delivery and Acceptance: Terms regarding vehicle delivery, inspection, and acceptance conditions

7. Title and Ownership: Provisions regarding retention of title until full payment and conditions for transfer of ownership

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

9. Maintenance and Use: Hirer's obligations regarding vehicle maintenance, permitted use, and restrictions

10. Default and Termination: Events of default, consequences, and termination procedures

11. Repossession Rights: Seller's rights and procedures for repossession in case of default

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

What sections are optional to include in a Car Hire Purchase Agreement?

1. Guarantor Provisions: Required when a guarantor is involved in securing the hire purchase

2. Early Payment Terms: Include when early payment options or rebates are offered

3. Cross-Default Provisions: Include when the hirer has multiple agreements with the finance company

4. Assignment Rights: Include when either party may need to assign rights under the agreement

5. Electronic Payment Terms: Include when electronic payment methods are specifically required or offered

6. Vehicle Modification Terms: Include when specific restrictions or permissions regarding vehicle modifications are needed

What schedules should be included in a Car Hire Purchase Agreement?

1. Schedule 1 - Vehicle Specification: Detailed technical specifications and features of the vehicle

2. Schedule 2 - Payment Schedule: Detailed breakdown of all payments including dates, amounts, and interest calculations

3. Schedule 3 - Insurance Requirements: Specific insurance coverage requirements and approved insurers

4. Schedule 4 - Delivery Acceptance Form: Form to be completed upon vehicle delivery confirming condition and acceptance

5. Schedule 5 - Maintenance Schedule: Required maintenance intervals and authorized service centers

6. Appendix A - Required Documents: List of documents required from the hirer (ID, licenses, proof of income, etc.)

7. Appendix B - Personal/Corporate Guarantee Form: Standard form for guarantee if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Loan Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Automotive

Financial Services

Banking

Insurance

Transportation

Fleet Management

Leasing

Consumer Finance

Retail

Relevant Teams

Legal

Finance

Credit

Risk Management

Sales

Compliance

Contract Administration

Collections

Customer Service

Operations

Relevant Roles

Legal Counsel

Finance Manager

Credit Manager

Risk Assessment Officer

Sales Manager

Compliance Officer

Contract Administrator

Fleet Manager

Financial Services Director

Credit Analyst

Account Manager

Collections Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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