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The Car Finance Contract serves as the primary legal document for vehicle financing transactions in Pakistan, establishing the rights and obligations of both the financing institution and the customer. This document is essential when a customer seeks financing for vehicle purchase, whether through conventional or Islamic banking channels. It encompasses crucial elements including vehicle details, financing terms, payment schedules, security arrangements, and insurance requirements. The contract must comply with Pakistani banking regulations, consumer protection laws, and where applicable, Islamic banking principles. It provides security for the financial institution while ensuring transparent terms for the customer, incorporating necessary provisions for vehicle registration, maintenance, default scenarios, and early settlement options. The document is structured to be enforceable under Pakistani law and includes all necessary provisions required by the State Bank of Pakistan and other regulatory authorities.

1. Parties: Identification of the finance provider and the customer, including complete legal names, addresses, and registration/identification numbers

2. Background: Brief context of the financing arrangement and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement including but not limited to 'Vehicle', 'Finance Amount', 'Payment Schedule', 'Security'

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

5. Finance Terms: Details of the finance amount, interest rate/profit rate, tenure, and total amount payable

6. Payment Terms: Payment schedule, installment amounts, due dates, and payment methods

7. Security Arrangements: Details of security/collateral including vehicle mortgage and any additional security required

8. Insurance Requirements: Mandatory insurance coverage requirements and terms

9. Customer Covenants: Customer's obligations regarding vehicle maintenance, usage, and restrictions

10. Events of Default: Circumstances constituting default and consequences thereof

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

12. Termination: Conditions and procedures for early termination or settlement

13. Governing Law: Confirmation of Pakistani law as governing law and jurisdiction details