A car lease agreement is a contract between a lessor, who owns the vehicle, and a lessee, who is the person renting the vehicle. This agreement sets out the terms and conditions of the rental, including the length of the lease, the monthly payment amount, and any penalties for early termination or excessive mileage.
To help you better understand what a car lease agreement looks like, we’ve provided an example below:
CAR LEASE AGREEMENT
THIS AGREEMENT made on [Date], between [Lessor’s Name], with a mailing address of [Lessor’s Address], hereinafter known as “Lessor,” and [Lessee’s Name], with a mailing address of [Lessee’s Address], hereinafter known as “Lessee.”
1. VEHICLE: Lessor hereby leases to Lessee the vehicle identified as follows: [Vehicle Make, Model, Year, and VIN], hereinafter known as the “Vehicle.”
2. TERM: The lease term shall be for [Lease Length] months, commencing on [Lease Start Date] and ending on [Lease End Date].
3. PAYMENT: Lessee agrees to pay Lessor [Monthly Payment Amount] as rent for the use of the Vehicle during the term of this lease. Payments shall be due on the [Payment Due Date] of each month.
4. DEPOSIT: Lessee shall provide Lessor with a security deposit of [Deposit Amount] upon execution of this lease. The deposit shall be refundable at the end of the lease term, provided that the Vehicle is returned to Lessor in the condition it was received, normal wear and tear excepted.
5. USE OF VEHICLE: Lessee shall use the Vehicle only for personal transportation and shall not use the Vehicle for any commercial purpose or illegal activity.
6. EXCESS MILEAGE: Lessee shall pay Lessor [Excess Mileage Charge] for each mile the Vehicle is driven in excess of [Mileage Limit] during the lease term.
7. EARLY TERMINATION: If Lessee terminates this lease prior to the end of the lease term, Lessee shall pay Lessor an early termination fee of [Termination Fee Amount].
8. MAINTENANCE: Lessee shall maintain the Vehicle in good operating condition and shall be responsible for all repairs and maintenance required during the lease term.
9. RETURN OF VEHICLE: At the end of the lease term, Lessee shall return the Vehicle to Lessor in the same condition it was received, normal wear and tear excepted.
10. GOVERNING LAW: This lease shall be governed by and construed in accordance with the laws of [Governing Law State].
IN WITNESS WHEREOF, the parties have executed this lease as of the date first above written.
[Signatures of Lessor and Lessee]
As you can see from this example, a car lease agreement is a detailed contract that outlines the terms and conditions of renting a vehicle. It is important to carefully review and understand all aspects of the agreement before signing, as it is legally binding and can have financial consequences if not followed properly.