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The Car Loan Contract is essential for any vehicle financing transaction in Germany, whether through a bank, dealership, or specialized auto finance company. This document is designed to comply with strict German consumer protection laws and banking regulations, including the Verbraucherkreditgesetz and relevant sections of the Bürgerliches Gesetzbuch (BGB). It serves as the primary agreement between a financial institution and a borrower, documenting the terms of vehicle financing, including loan amount, interest rates, repayment schedule, and security arrangements. The contract incorporates mandatory consumer rights such as the 14-day withdrawal period and transparent cost disclosure requirements. It's particularly relevant for new and used vehicle purchases, reflecting German market practices and regulatory requirements for consumer automotive financing.

1. Parties: Identification of the lender (financial institution) and borrower with full legal names and addresses

2. Background: Brief context of the loan purpose and the vehicle being financed

3. Definitions: Key terms used throughout the agreement including 'Vehicle', 'Loan Amount', 'Interest Rate', 'Payment Period', etc.

4. Loan Details: Specific details of the loan including principal amount, interest rate, APR, total amount payable, and loan term

5. Vehicle Information: Detailed description of the financed vehicle including make, model, year, VIN, and purchase price

6. Payment Terms: Payment schedule, method of payment, and consequences of late or missed payments

7. Security Interest: Details of the security interest in the vehicle and registration of the security

8. Insurance Requirements: Mandatory insurance requirements for the vehicle and consequences of non-compliance

9. Borrower's Representations: Borrower's confirmations regarding their financial situation and ability to repay

10. Right of Withdrawal Notice: Mandatory information about the 14-day right of withdrawal under German law

11. Default and Remedies: Events of default and the lender's rights and remedies in such cases

12. Data Protection: GDPR-compliant provisions regarding the processing of personal data

13. Governing Law: Confirmation of German law application and jurisdiction