Page 1 of the Conditional Sales Contract Sample Clauses

Page 1 of the Conditional Sales Contract. Disclosed on the front portion of the title, the contract needs to have a box outlined in red at least one inch squared. Here is the determining factor for a new or used vehicle: A used vehicle, by definition, is any vehicle that has already been operated and titled. According to the California Vehicle Code, “A ‘used vehicle’ is a vehicle that has been sold, or has been registered with the department, or has been sold and operated upon the highways, or has been registered with the appropriate agency of authority, of any other state, District of Columbia, territory or possession of the United States or foreign state, province or country, or unregistered vehicles regularly used or operated as demonstrators in the sales work of a dealer or unregistered vehicles regularly used or operated by a manufacturer in the sales or distribution work of such manufacturer.” (Find Law Staff, 2019) A new motor vehicle is a vehicle that is sold with an MSO (Manufacturer’s Statement of Origin) or MCO (Manufacturer’s Certificate of Origin) According to the California Vehicle Code, “A ‘new vehicle’ is a vehicle constructed entirely from new parts that has never been the subject of a retail sale, or registered with the department, or registered with the appropriate agency or authority of any other state, District of Columbia, territory or possession of the United States, or foreign state, province, or country.” (Find Law Staff, 2019) Federal Truth-In-Lending Disclosures Important elements of the truth in lending disclosures are: • Annual Percentage Rate o The cost of the customers is credit on an annual basis. • Finance Charge o How much will the total cost of the credit arrangement cost • Amount financed. o The amount of money that the creditor will provide to the customer by the financial institution. • Total payments o The combined amount of money a customer will have to pay when all the payments have been satisfied based. • Total Sale Price o The total cost of the transaction including the customer’s down payment and what the total cost of credit will be as well. Breaking out the payment schedule: It is important to list out the number of payments, what that total amount of the payment will be and when those payments will be due. It also needs to outline any kind of: • Late charges – Late charges occur if the monthly payment is not paid on time or within the designated grace period, a percentage of the payment will be due to make up for it. • Pre-payment penalty – It is impo...