The term cash price refers to the amount a creditor offers to sell a property or service for cash, without financing. This price may also include costs for accessories, related services, service contracts, taxes, and fees for licenses, titles, and registrations. However, it does not encompass any finance charges that may apply to the transaction.
In legal practice, the term cash price is commonly used in the context of consumer credit and lending regulations. It plays a significant role in the Truth in Lending Act, which aims to ensure that consumers are informed about the costs associated with credit transactions. Users may encounter this term when dealing with contracts for goods or services, particularly in retail or automotive sales. With the right tools, such as templates from US Legal Forms, individuals can manage related legal documents effectively.
Here are a couple of examples of abatement:
Example 1: A car dealership offers a vehicle for a cash price of $20,000. This price includes the cost of the car, a warranty, and taxes, but does not include any financing fees.
Example 2: A furniture store lists a sofa for a cash price of $800, which covers the sofa, delivery charges, and sales tax, excluding any financing options available.
Examples of state differences (not exhaustive):
| State | Cash Price Regulations |
|---|---|
| California | Must include all taxes and fees in the cash price. |
| Texas | Allows optional inclusion of service contracts in cash price. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition |
|---|---|
| Cash Price | The price for a transaction paid in cash, excluding finance charges. |
| Retail Price | The total price at which a product is sold, which may include financing options. |
| Finance Charge | The cost of borrowing money, which is not included in the cash price. |
If you are entering into a transaction where cash price is a factor, ensure you understand what is included in that price. Review any contracts carefully. If you need assistance, consider using templates from US Legal Forms to create or review your agreements. For complex situations, seeking professional legal advice may be beneficial.
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The cash price may include the cost of the item, accessories, related services, and applicable taxes, but not finance charges.