A retail installment agreement is an agreement signed by the Purchaser involving a finance charge and providing for the sale of goods or services. Federal and some State Laws (Consumer Credit Protection Acts) require the disclosure of what the Purchaser is being charged for the credit he/she is receiving. These disclosures include such things as the amount being financed; finance charges; the annual percentage rate; and the number of payments and when due. However, such disclosures are usually only required when a person regularly extends consumer credit (e.g. more than 25 times in the preceding calendar year).
This form is for a casual seller who does not enter into such transactions on a regular basis. It can also be used in commercial transactions (e.g., credit that is not being extended primarily for personal, family, or household purposes).
The Purchaser in this form grants the Seller a security interest in the collateral being sold. A security interest is an interest in personal property or fixtures that secures payment or performance of an obligation. The Seller requires the Purchaser to secure the obligation with the personal property being purchased so that if the Purchaser does not pay as promised, the Purchaser can take the collateral back, sell it, and apply the proceeds against the unpaid obligation of the Purchaser.
The New Mexico Retail Installment Contract or Agreement refers to a legal document that outlines the terms and conditions for the purchase of goods or services in which the buyer agrees to make payments over a period of time. This particular agreement is specifically applicable to retail transactions in the state of New Mexico. The New Mexico Retail Installment Contract is designed to protect the rights of both the buyer and the seller involved in the transaction. It provides a framework for detailed disclosure of the terms, finance charges, and other fees associated with the purchase. This ensures transparency and helps prevent any potential dispute in the future. There are several types of New Mexico Retail Installment Contracts or Agreements, depending on the nature of the transaction. Some common types include: 1. Automobile Installment Contracts: This type of contract is used for the purchase of vehicles, such as cars, trucks, or motorcycles. It outlines specific details related to the vehicle, including make, model, year, identification number, and purchase price. 2. Consumer Goods Installment Contracts: This category covers a wide range of retail goods, such as electronics, appliances, furniture, and other consumer products. The agreement includes the description, quality, and price of the goods being sold. 3. Home Improvement Installment Contracts: These contracts are utilized for purchasing and financing home improvement services or products. They typically involve contractors or vendors who provide services like remodeling, repairs, or landscaping. Regardless of the type, all New Mexico Retail Installment Contracts must comply with state laws and regulations to protect consumers and ensure fair business practices. The agreements must clearly state the Annual Percentage Rate (APR), total amount financed, payment schedule, late payment penalties, and any other relevant terms and conditions. It is important for both buyers and sellers to carefully review and understand the terms of the agreement before signing. If any issues or concerns arise during the duration of the contract, it is advisable to seek legal advice or contact the New Mexico State Attorney General's Office for assistance.
