Leasing a car is similar to renting it for a longer period. In most cases, you’ll have to pay a down payment along with monthly payments and use a vehicle for several years. After the lease is over, you must decide whether to start a new lease, buy a car, or go carless. Here’s how a car or van lease agreement works and if it’s the right choice for you.
Lessors (the companies that own or will purchase the vehicles) and lessees (the people who pay for the cars) are parties to an automobile lease agreement.
Your leasing payment will be determined by the depreciation of the vehicle, plus interest and fees, plus the difference between the current value of the commercial vehicle and its future value.
When it comes to car lease agreement, contract covers the following:
You don’t own the vehicle, so some of the restrictions are restrictive. It’s your responsibility to return the car in good condition to the lessor at the end.
Here are some steps to prepare for leasing:
Generally, a Vehicle Rental Agreement is a legal contract between a car owner and a person who wants to use the vehicle temporarily for a fee. For a negotiated period of time, you get the keys to the car and access to it. With a properly drafted car lease agreement form, you will be able to restrict mileage, the country of use, and certain users.
Vehicle Rental Contract.
There is a difference between a Vehicle Rental Agreement and a Vehicle Lease Agreement. It’s the same in both cases, but there are some differences. A lease is a longer-term commitment, while a rental is less than a year. With short-term rentals, the lessor is less likely to provide the lessee with the option to purchase the vehicle at the end of the lease.
Your lease agreement details the terms and conditions of your contract, including the cost of the monthly payments, the length of the lease, restrictions, and additional fees.
Understanding what you’re getting into when you sign an auto lease agreement is critical. If you lease a new vehicle, you can drive it for less than you would if you were buying it, but you may face penalties if you return it.
Feel free to use our printable sample that you can open in Word or as a PDF. This can be used to lease or sublease a commercial standard vehicle. Be sure to check your local governing law and seek out a professional who can provide legal advice if you are unsure.
Vehicle Lease Agreement
This Vehicle Lease Agreement (hereinafter referred to as the “Agreement”) is entered into as of _________________ by and between ________________________, with a mailing address of _____________________________________________________ _____________________________________ (hereinafter referred to as the “Lessor”) and __________________________, with a mailing address of __________________ ____________________________________ (hereinafter referred to as the “Lessee”), collectively referred to as the “Parties,” both of whom agree to be bound by this Agreement.
1. Vehicle Being Leased. The Lessor agrees to lease the following vehicle to the Lessee:
_____________________ _____________________ _____________________
Make Body Year
hereinafter referred to as the “Vehicle”. The Vehicle is subject to the ownership of the Lessor.
2. Lease Amount. The amount of the Vehicle Lease is $____________________ per ______________________________.
The Lease includes unlimited miles. Mileage fees will not be charged to the Lessee.
3. Vehicle Cost Disclosure. The full retail value of the Vehicle as of ____________ is $____________________.
4. Down Payment. The Lessee will provide a down payment of $____________________, which will be deducted from the amount to be paid over the term of the Lease.
5. Lease Duration. This Agreement will begin on _____________________ and remain in full force and effect until the Vehicle is returned to the Lessor. It is agreed that the Lessee will return the Vehicle on _____________________ unless the Agreement is terminated earlier.
6. Damage or Loss. As permitted given the extent of the law, the Lessee will be responsible for risk of theft, damage, loss, or destruction of the Vehicle from any and every cause. If while in the Lessee’s possession the Vehicle becomes damaged, the Lessee agrees to pay for any and all costs of repair, up to the current value of the Vehicle. If while in the Lessee’s possession, the Vehicle becomes lost, the Lessee agrees to pay the Lessor its current value.
7. Late Return. Upon returning the Vehicle to the Lessor after the scheduled time and date.
At the end of the lease period, the Lessee agrees to pay the Lessor a fee of
$____________________ per day for each day beyond the end of the lease period, until the Vehicle is returned. The Lessor is also allowed to subtract these charges from the security deposit (if applicable).
8. Security Deposit. In addition to the fees listed in the Lease Amount and Late Return, the Lessee agrees to pay a deposit of $____________________ at the time this Agreement is signed. The Lessor may use this deposit to cover any amounts due under this Agreement.
9. Insurance. This Agreement requires the Vehicle to be insured.
10. Vehicle Responsibility. The Lessee agrees that they will be the sole operator of the Vehicle over the term of the Lease, unless otherwise agreed upon with the Lesser.
11. Vehicle Care. It is agreed that the Vehicle must only be used in a proper and careful manner consistent with the Lessor’s instructions and/or as the Vehicle was originally designed.
12. Legal Fees. The successful party in a dispute that leads to litigation will be entitled to recover his legal fees, including, but not limited to, his attorneys’ fees, collection fees, and so forth.
13. Legal and Binding Agreement. In accordance with the Agreement, both Parties must adhere to its terms. This Agreement is entered into by the Parties on their own authority.
14. Governing Law and Jurisdiction. Under this Agreement, the Parties agree that it will be governed by ____________________ law.
15. Entire Agreement. Each Party acknowledges and agrees that this Agreement represents their entire agreement. Both parties must sign any changes, additions, or other modifications to these terms in writing.
In accordance with the above, the aforementioned parties are agreeing to the following terms and conditions:
|LESSORName: ______________________Signed: _____________________Date: _______________________||LESSEEName: ______________________Signed: _____________________Date: _______________________|
In order to write an Auto Leasing Agreement, you must start with the introduction of a lessor and a lessee. This includes names, addresses, and how they will be referred to throughout the remainder of the document.
Recitals section includes the “whereas” clauses. You can download a free an Auto Leasing Agreement template and use the recitals from it directly to save extra time and efforts.
Make sure to fill in the details how a vehicle looks and all the information about the model (the more details — the better).
There are few sectioins, including payment amount, lease costs, fees, form of payment, and security deposit.
This is another important section that defines the conditions necessary to consider when it comes to vehicle return.
To review other important section of Auto Leasing Agreement, such as excessive wear and use, maintenance, risk of loss, and others, download the following free auto leasing agreement.
To return your leased car, it’s usually best to return it to the dealership where you leased it at first. Your car will undergo a lease inspection before it is returned to the dealership. Charges will apply if the car has been damaged or worn excessively. The lessor’s inspector will examine the following:
Typically, your lessor will schedule a lease inspection a few days or weeks before you drop off your personal car. Prior to the inspection, you might want to get your car washed and get a few minor touch-ups done.
Be sure that you return your vehicle with all the parts and accessories that came with it, including the spare tire that came with it and all the keys.
When you return your leased car, it may be worth more than the residual value listed in the lease contract if you have taken good care of it and driven far fewer miles than what your lease agreement permits.
Frequently Asked Questions
Purchasing may seem more attractive than leasing at first glance. You don't have to pay back any principal, so monthly payments are lower. In reality, you'll just borrow and repay the difference between the car's value when new and its residual value at lease end, plus finance charges.
Leasing a used car can be more cost-effective than leasing a new car since the car won't depreciate as much, meaning your monthly payments will be lower. It's better to finance a car if you want to make an investment, but leasing is a better choice if you want to change cars frequently.
You should lease a motor vehicle during the months of July and October so that you can maximize your savings. Individuals can find special leasing incentives during long holiday weekends, including President's Day, Memorial Day, Independence Day, Labor Day, and Thanksgiving.