Agreement Letter for Hire Purchase

[Seller’s Name/Dealership]
[Seller’s Address]
[City, State, ZIP Code]
[Date]

[Buyer’s Name]
[Buyer’s Address]
[City, State, ZIP Code]

Subject: Hire Purchase Agreement for Vehicle

Dear [Buyer’s Name],

This Hire Purchase Agreement (the “Agreement”) is made and entered into on [Date] between [Seller’s Name/Dealership] (hereinafter referred to as the “Seller”) and [Buyer’s Name] (hereinafter referred to as the “Buyer”). The purpose of this agreement is to outline the terms and conditions of the hire purchase arrangement for the vehicle described below.

1. Description of Vehicle

• Make and Model: [Vehicle Make and Model, e.g., Toyota Corolla 2022]
• VIN (Vehicle Identification Number): [Vehicle VIN]
• Total Purchase Price: $[Total Purchase Price]

2. Down Payment

• The Buyer agrees to make an initial down payment of $[Down Payment Amount] upon signing this agreement. This amount will be deducted from the total purchase price.

3. Loan Balance and Installment Payments

• Remaining Balance: $[Remaining Balance after Down Payment]
• Monthly Installment Amount: $[Installment Amount]
• Number of Payments: [Number of Payments, e.g., 24 monthly installments]
• Payment Due Date: Payments are due on the [specific day, e.g., 5th] of each month, beginning on [First Payment Date].

4. Interest Rate

• An interest rate of [Interest Rate] % per annum is applied to the loan balance. The interest is included in each monthly installment.

5. Ownership and Transfer of Title

• Ownership and title to the vehicle will remain with the Seller until the Buyer has completed all required payments in full. Upon the final payment, the Seller will transfer ownership and provide the necessary documents for title transfer.

6. Responsibilities of Buyer

• The Buyer agrees to:
  • Maintain the vehicle in good working condition.
  • Cover all insurance, repair, and maintenance costs.
  • Adhere to all local laws and regulations regarding vehicle operation and registration.

7. Late Payment and Default Terms

• A late fee of $[Late Fee Amount] will be applied if a payment is more than [Number of Days] days overdue.
• If the Buyer fails to make two consecutive payments, the Seller reserves the right to repossess the vehicle. The Buyer agrees to return the vehicle upon request if repossession is required.

8. Prepayment Option

• The Buyer may choose to pay off the remaining balance in full at any time without penalty.

9. Governing Law

• This Agreement is governed by the laws of [State/Country].

Please indicate your acceptance of these terms by signing below.

Sincerely,
[Seller’s Name/Dealership Representative]
Signature: ___________________________
Date: _______________________________

I, [Buyer’s Name], agree to the terms and conditions outlined in this Hire Purchase Agreement.

[Buyer’s Signature]
Date: _______________________________

[Seller’s Name/Company]
[Seller’s Address]
[City, State, ZIP Code]
[Date]

[Buyer’s Name]
[Buyer’s Address]
[City, State, ZIP Code]

Subject: Hire Purchase Agreement for Home Appliance

Dear [Buyer’s Name],

This Hire Purchase Agreement (the “Agreement”) is entered into by [Seller’s Name/Company] (referred to as the “Seller”) and [Buyer’s Name] (referred to as the “Buyer”) on [Date]. The agreement outlines the terms of a hire purchase arrangement for a home appliance as described below.

1. Description of Appliance

• Product: [Appliance Description, e.g., Samsung Refrigerator Model XYZ]
• Serial Number: [Product Serial Number]
• Total Purchase Price: $[Total Purchase Price]

2. Deposit

• The Buyer agrees to make an initial deposit of $[Deposit Amount] upon signing this Agreement. This deposit will be deducted from the total purchase price.

3. Installment Payment Terms

• Outstanding Balance: $[Total Purchase Price - Deposit]
• Monthly Payment: $[Monthly Installment Amount]
• Total Number of Payments: [Number of Payments, e.g., 12 monthly payments]
• Payment Due Date: Payments will be made on the [specific date, e.g., 10th] of each month, with the first payment due on [First Payment Date].

4. Ownership and Transfer Conditions

• Ownership of the appliance will remain with the Seller until the final payment is made by the Buyer. Upon completion of the last installment, ownership will be transferred to the Buyer, along with a proof of purchase.

5. Buyer’s Obligations

• The Buyer agrees to:
  • Keep the appliance in good condition and follow the manufacturer’s usage guidelines.
  • Be responsible for all maintenance, repairs, and any insurance coverage, if applicable, during the hire period.
  • Notify the Seller immediately of any loss or damage to the appliance.

6. Late Payments and Repossession Terms

• A late fee of $[Late Fee Amount] will be charged for any installment that is [Number of Days] days overdue.
• If the Buyer fails to make two consecutive payments, the Seller reserves the right to reclaim the appliance without prior notice. Any payments made up to that point will not be refunded.

7. Early Repayment Option

• The Buyer may pay off the balance in full at any time without incurring any early repayment fees or penalties.

8. Governing Law

• This Agreement is governed by the laws of [State/Country].

Please confirm your acceptance of these terms by signing below.

Sincerely,
[Seller’s Name/Company Representative]
Signature: ___________________________
Date: _______________________________

I, [Buyer’s Name], agree to the terms and conditions outlined in this Hire Purchase Agreement.

[Buyer’s Signature]
Date: _______________________________