A retail rate contract is slightly different from a loan. Both are ways for you to get a vehicle by agreeing to make payments over time. In both cases, you are usually bound by the agreement after signing. A loan is a transaction between you and a bank or other lender for money, where you use the money to buy a vehicle and agree to repay the credit balance plus interest. On the other hand, a tempe sale in the item is a transaction between you and the dealer to buy a vehicle in which you agree to pay the dealer over time, paying both the value of the vehicle and the interest. A trader could sell the private rate sale contract to a lender or another party. In the case of a private rate sales contract, you may have additional rights under your state`s law (for example. B the ability to suspend payments to the dealership) in the event of a vehicle failure.