One of the most important necessities in life today is a car. For those of us who do not live in cities with well-developed public transportation systems, a car is integral to how one generates income. With the advent and companies like Lyft and Uber, people can be their own boss and generate some side-income by driving people around. For those individuals that are unable to afford a car, getting a car loan may be their best option.
Promissory notes for car loans make sure that you have a legal cover and a solid record of the transaction. The sample note below highlights the principal amount, the interest rate applicable on the loan, the scheduled mode of payments, and the dates of payments.
Promissory Note for Car Loan – Sample
Principal Amount of Car Loan: $________________ (insert amount being loaned)
Date: ___________ (insert date at the time of the contract being made)
For the value received of the amount stated above I, ________________ (Insert Name of Borrower) promise to repay Mr./Ms. ________________ (Insert Name of Lender) the total sum of $________________ (Insert amount), as well as interest, which has been set at the yearly rate of _______(Insert percentage of interest agreed) %.
I declare that the purpose of this loan is to buy a vehicle (this includes, cars, bikes, trucks, etc.) _____________ (insert name of car) by __________ (Insert name of the manufacturing company of the car) of ______________ (Insert name of the car’s model) model.
I agree and state that the repayments of the amount borrowed will be made in monthly payments over a period of_______ (insert number of months the payment will span for) months. Each payment will be of an amount of $________________ (insert amount to be paid monthly) on the 1st day of each month. The payment will start at the date_________ (Insert date of the first payment month) and the final payment of the repayment of the loan will be due on _________(Insert date of the last payment month) or until the principal amount that was lent is paid back in full.
In case of any failure to make the payment in a way that was agreed upon when due or is found in breach of any other term contained in this promissory note, the loan will be considered a default. In any such case, it is the job of the borrower to contact the lender at the earliest available opportunity and make arrangements with him/her to bring the loan to terms under the compliance of this promissory note. The borrower is expected to make any and all efforts in their power to make the payments on the time that is agreed upon in this promissory note and to religiously comply with each and every term of this note.
The borrower pledges that the car being bought will be owned by ___________ (insert name of the lender) as a security for the note that is payable. The title to the collateral will be transferred to the borrower after Note is paid back to the lender in full.
The note may also be repaid by the Borrower at any time fully subject to it being the exact amount borrowed without any penalties or premiums. If the payments prior to the loan are high enough the loan may be re-amortized. In case of any change of number of address, the lender needs to be promptly informed by the borrower.
Borrowers Printed Name: _________________________
Borrower’s Signature: _________________________
Address of the Borrower: ________________________________________________________________
Borrower’s Number: ______________________
Borrower’s Email: ______________________
Lenders Printed Name: _________________________
Lender’s Signature: _________________________
Address of the Lender: ________________________________________________________________
Lender’s Number: ______________________
Lender’s Email: ______________________
Witness Name: _________________________
Witness Signature: _________________________