DOWN PAYMENT RATIO Clause Samples
The Down Payment Ratio clause defines the percentage of the total purchase price that the buyer must pay upfront as a down payment. Typically, this clause specifies the exact ratio or percentage, such as 20% of the agreed price, and outlines when and how this payment should be made, often prior to the completion of the transaction. Its core function is to ensure that the buyer demonstrates financial commitment and reduces the seller's risk by securing a portion of the payment before the transfer of ownership or delivery of goods.
DOWN PAYMENT RATIO. A. Obligors on all Contracts must be required to have made a down payment (cash plus net trade-in allowance) of at least 10% of the Dealer's cost (excluding sale preparation expenses) in the Financed Vehicle.
DOWN PAYMENT RATIO. Obligors on all Contracts must have made a down payment in cash and/or net trade-in allowance of not less than 15% of the actual price paid by draft to the selling automobile Dealer for the related Leased Vehicle; provided, however, that the down payment for any Leased Vehicle which is more than three model years old shall equal at least 20% of the actual purchase price.
DOWN PAYMENT RATIO. Obligors on all Contracts must have made a payment on the Contract in cash and/or net trade-in allowance equal to not less than 15% or, in the case of Leased Vehicles which are four model years old 20%, of the actual purchase price paid to the dealer who sold the related Leased Vehicle to the Buyer.
a. Each Contract must have an original term of 48 months or less.
b. Each Contract shall be in the form of industry-standard consumer automobile lease contracts.