Vehicle Lease Agreement between Individuals: The Importance
When you rent a vehicle from an individual, not a company, you will have to include the so-called vehicle lease agreement between individuals contract. The contract will protect your rights and it will minimize the possibility of problems in the future. Whether you are acting as the owner of the vehicle or as the person renting the car, you need to make sure that you have the agreement letter and you sign it – after you understand your rights and responsibilities.
About the Agreement
The vehicle lease agreement is a written contract that is designed for lessor (the owner of the vehicle) and the lessee (the person renting the vehicle). The agreement isn’t exclusive to cars only, but to all vehicles having the license plate and the VIN (Vehicle Identification Number). It is most common for regular usage with motorcycles, trucks, and also pre-owned cars. Through the written contract, the agreement will protect the involved parties from any miscommunications and misunderstandings that possibly arise during the period of the rent.
In general, the agreement is used between the lessee and the company. However, when someone has a personal and individual car rental business (where the cars aren’t more than 3), then having the vehicle lease agreement between individuals is crucial. Not only it protects the lessee, but also the lessor and his assets (the cars).
About the Document
The agreement should contain all the crucial info related to the rental process and procedures. It should contain:
- The identifying details, like contact info and address
- The full description of the vehicle
- The fees that lessee is responsible for (such as the security deposit, the down payment, the registration fee, and such thing alike)
- The retail value (it would be great if the negotiated value can be included)
- The charged interest rate
- The projected vehicle value
- The payment schedule
- The late fees in case the payments aren’t met on schedule
After composing the agreement, it is then printed and then signed. Both of the involved parties need to have the copy as a proof. Don’t underestimate that piece of paper because it holds specific state laws as well as federal law.
Because of the legal-binding power, you want to make sure that you compose it right. One way to make sure of it is to use some of the available templates – some websites even allow you to make changes before you can save it and then print it. We also have our own examples of the vehicle lease agreement between individuals templates below so feel free to use them.