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The Car Finance Agreement is a crucial document used in Saudi Arabia for facilitating vehicle purchases through Islamic financing structures. It serves as the primary contractual document between finance companies and customers seeking to acquire vehicles through installment payments. The agreement must comply with both SAMA (Saudi Central Bank) regulations and Islamic financial principles, particularly avoiding conventional interest (riba). It typically includes comprehensive details about the vehicle, financing terms, payment schedule, ownership transfer conditions, and customer obligations. This document is essential for any vehicle financing transaction in Saudi Arabia and must be structured to protect both the financier's rights and customer interests while maintaining Sharia compliance.

1. Parties: Identification of the Finance Company (Financier) and the Customer (Borrower)

2. Background: Context of the agreement including vehicle details and financing purpose

3. Definitions: Key terms used throughout the agreement including Murabaha/Ijara concepts

4. Financing Structure: Details of the Islamic financing structure used (typically Murabaha or Ijara)

5. Purchase Price and Payment Terms: Total cost, down payment, installment amounts, and payment schedule

6. Vehicle Details and Ownership: Comprehensive description of the vehicle and ownership arrangements

7. Customer Obligations: Customer responsibilities including payments, vehicle maintenance, and insurance

8. Financier Rights: Rights of the finance company including security interests and enforcement

9. Insurance Requirements: Mandatory insurance coverage and related obligations

10. Events of Default: Circumstances constituting default and consequences

11. Early Settlement: Terms and conditions for early repayment

12. Termination: Conditions and process for agreement termination

13. Governing Law and Jurisdiction: Application of Saudi law and dispute resolution mechanisms