Vehicle Lease Agreement
If you are an owner-operator of a vehicle leasing company, then you better get your personal car rental agreement ready! Why? Simply because Statista reported that the compound annual growth rate (CAGR) of the car lease or auto lease industry is 18.5% from now up until 2024. In other words, the number of motor vehicle rental dealerships in the United States is increasing. To help you or your employees in catering them, we offer you our sample templates in hand! They include many variants, such as simple, printable, and even vehicle lease to own agreements. Not only that, each of them completely covers all the areas that need to be taken into account. These include lease payment, rental termination letters, and end of lease agreement clauses. Read our article below to know more about such a process document!
10+ Vehicle Lease Agreement Examples
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What Is a Vehicle Lease Agreement?
A vehicle lease agreement is a process document that defines the arrangement between an owner and an individual who wants to lease a vehicle for a certain period. These rental or lease agreements are commonly produced for foreigners’ tours and special occasions. There are also some cases when individuals just want to avoid costs, ride their dream car, and have alternatives while their cars are on repairs. The main purpose of such a document is to protect both parties from any issue that may arise, to establish financial deals firmly, and to close the settlement between the lessor and the lessee harmoniously.
Basic Car Insurance
Car insurance is a documented form of protection against monetary loss during car-related accidents and thefts. Most of the vehicle leasing companies offer one for their every deal. Most of these basic insurance policies include collision damage waiver, theft protection, and third-party liability.
1. Collision Damage Waiver – Whenever a client damaged a specific part of the leased vehicle, the rental company will waive the cost. However, the client should pay the damages that were not specified by the rental company.
2. Theft Protection – If the leased vehicle gets stolen, this insurance will cover the cost.
3. Third-Party Liability – If the client damages other people’s properties, such as cars and fences, this policy will cover the cost.
How To Create a Vehicle Lease Agreement
Creating and signing of agreements have been long accepted in the world of business. They act as records, proofs, and protection of business transactions. When creating one for vehicle leasing, you have to make sure that all of its relevant areas must be put into account. In order for us to assist you with that matter, we have prepared our outline of standard-based guidelines that you can refer to. Read more about them below.
1. Describe the Leased Property
Provide a detailed description of the leased vehicle. In this section, you should include the vehicle’s color, plate number, classification, brand, and model. This section is also applicable in other property lease agreements, such as real estate lease agreements, medical office lease agreements, and many more.
2. Identify the Involved Parties
In a vehicle lease or car rental agreement, you must not forget to mention who the involved parties are. This part of the agreement should include their names, contact information, billing and email addresses.
3. Set the Leasing Details
This section is where you will be setting all the pieces of information about the vehicle lease or car rental agreement. Included in this part is the length of time that the lessee will be renting the vehicle, as well as the specific dates of when the lease would take and lose effect. Moreover, the car rental quotation should also be incorporated along with the payment schedule.
4. Establish Cash Deposit or Fees
As a vehicle leasing company, you have to ensure the security of payment. This is why you have to establish cash deposits or any additional fees that may secure the client’s compliance with the payment schedule.
5. Discuss Late and Non-Payment Disputes
Late payments or non-payments are major problems for vehicle leasing companies. But before putting these matters under lawsuits, they should be discussed first. If your vehicle leasing company has its set of dispute resolution policies, it’s best to lay them out in your car rental agreement. Some of them may include money-related penalties.
6. Include Termination Clause
There are many reasons why an agreement should be terminated. By including a termination letter or clause in your agreement, you explain why it has to be done. It is important to untie successful or unsuccessful business transactions.
FAQs:
What is the current value of the global car rental industry?
According to the Allied Market Research, the global car rental industry is going on a 10.7% CAGR from 2020 to 2027. So from USD 92.92 billion in 2019, the market value is projected to hit USD 214.04 billion by 2027.
What are the best car rental companies in the United States?
There are many car rental companies in the United States. However, not all of them offer economical options. To know which company to book, here are the top car rental companies as ranked by CarRental.Deals:
1. Alamo – Rate: 8.6 out of 10
2. Enterprise – Rate: 8.5 out of 10
3. National – 8.4 out of 10
4. Dollar – 8.2 out of 10
5. SIXT – 8.1 out of 10
What happens if I crash a rental car?
Car accidents may happen anytime. Whenever such situations happen while you’re renting a car, you need to act decisively. Here are the things you need to do when you get a rental car into an accident.
1. Get injured individuals to safety.
2. Communicate with emergency services.
3. Swap contact information and note what happened.
4. Inform your rental company.
Transportation has become one of the necessities of every individual. Famous Indian author Amit Kalantri even said, “Take care of your car in the garage, and the car will take care of you on the road.” Because of the fact that they are essential, many entrepreneurs took the opportunity to make a profit out of it through vehicle selling and leasing. And as part of business, all transactions must go through documentation procedures for record, proof, and protection purposes, making the existence of a vehicle lease agreement necessary.
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