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Taking Over Car Installments Agreement for Germany

Taking Over Car Installments Agreement Template for Germany

This document is a legally binding agreement governed by German law that facilitates the transfer of car loan installment obligations from one party (Original Debtor) to another (New Debtor), with the consent of the financing institution (Original Creditor). The agreement complies with the German Civil Code (BGB), particularly sections relating to debt assumption (Schuldübernahme), and incorporates consumer protection requirements under German consumer credit laws. It outlines the terms of transfer, remaining payment obligations, vehicle details, and responsibilities of all parties involved, ensuring a legally sound transition of financial obligations while maintaining the security interests of the creditor.

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What is a Taking Over Car Installments Agreement?

The Taking Over Car Installments Agreement is essential in situations where an existing car loan needs to be transferred to a new debtor while maintaining the original financing terms. This document is commonly used in Germany when a vehicle owner wishes to transfer their car and associated financial obligations to another party, often due to financial circumstances, relocation, or personal preference. The agreement must comply with German banking regulations, consumer protection laws, and the BGB's requirements for debt assumption. It includes crucial information about the vehicle, remaining payment schedule, parties' obligations, and creditor's rights. This type of agreement is particularly important as it provides legal certainty for all parties involved and ensures the proper documentation of the transfer of financial obligations while maintaining compliance with German regulatory requirements.

What sections should be included in a Taking Over Car Installments Agreement?

1. Parties: Identification of all parties: Original Debtor (current car owner), New Debtor (party taking over installments), and Original Creditor (financing institution)

2. Background: Context of the original car financing agreement and the reason for the transfer of installment obligations

3. Definitions: Definitions of key terms used throughout the agreement, including Vehicle, Original Loan Agreement, Outstanding Balance, and Payment Schedule

4. Transfer of Obligations: Core provision detailing the transfer of payment obligations from Original Debtor to New Debtor

5. Consent of Original Creditor: Documentation of the financing institution's approval of the transfer of obligations

6. Vehicle Details: Specific information about the vehicle including make, model, year, VIN, and current condition

7. Payment Terms: Details of remaining payments, interest rates, payment dates, and method of payment

8. Representations and Warranties: Statements by all parties regarding their capacity to enter the agreement and the vehicle's condition

9. Vehicle Registration and Insurance: Requirements for transferring vehicle registration and maintaining required insurance

10. Default Provisions: Consequences of default and remedies available to the Original Creditor

11. Governing Law and Jurisdiction: Confirmation of German law application and jurisdiction for disputes

What sections are optional to include in a Taking Over Car Installments Agreement?

1. Vehicle Inspection Report: Detailed condition report of the vehicle, recommended when the vehicle is older or has significant mileage

2. Security Provisions: Additional security requirements if demanded by the Original Creditor

3. Co-Signer Provisions: Terms relating to any co-signers or guarantors, if required by the Original Creditor

4. Early Payment Options: Terms for early repayment of the remaining installments, if permitted

5. Transfer of Additional Benefits: Transfer of warranties, service packages, or other benefits associated with the vehicle

6. Dispute Resolution: Alternative dispute resolution procedures, if parties wish to specify mediation before court proceedings

What schedules should be included in a Taking Over Car Installments Agreement?

1. Schedule A - Original Loan Agreement: Copy or key terms of the original financing agreement

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

3. Schedule C - Vehicle Documentation: Copies of vehicle registration, insurance certificates, and technical inspection reports

4. Schedule D - Consent Documentation: Written consent from the Original Creditor and any other required third-party consents

5. Appendix 1 - Vehicle Handover Protocol: Document recording the physical transfer of the vehicle and its condition

6. Appendix 2 - Insurance Requirements: Detailed specifications of required insurance coverage

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

Germany

Publisher

Ƶ

Document Type

Payment Agreement

Sector

Banking

Cost

Free to use
Relevant legal definitions









































Clauses


























Relevant Industries

Automotive

Financial Services

Banking

Insurance

Consumer Credit

Retail Automotive

Vehicle Leasing

Consumer Finance

Relevant Teams

Legal

Finance

Compliance

Credit Risk

Sales Finance

Customer Service

Documentation

Collections

Account Management

Operations

Relevant Roles

Finance Manager

Legal Counsel

Automotive Finance Specialist

Credit Risk Manager

Compliance Officer

Contract Administrator

Vehicle Finance Coordinator

Consumer Credit Analyst

Sales Finance Manager

Customer Service Representative

Documentation Specialist

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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