Car Lease Agreement 

This Car Lease Agreement (“Agreement”) is entered into on [Date], by and between: 

1. Lessor: [Full Legal Name], with a mailing address of [Address], hereinafter referred to as the “Lessor.” 

2. Lessee: [Full Legal Name], with a mailing address of [Address], hereinafter referred to as the “Lessee.” 
 

The Lessor and the Lessee may each be referred to as a “Party” and collectively as the “Parties.” 

1.     Vehicle Description 

The Lessor agrees to lease to the Lessee the following vehicle (the “Vehicle”): 

• Make: [Make] 

• Model: [Model] 

• Year: [Year] 

• Vehicle Identification Number (VIN): [VIN] 

• License Plate (if known): [Plate Number] 

2.     Lease Term 

a. The term of this Agreement (the “Term”) shall commence on [Commencement Date] and continue until [End Date] unless terminated earlier under this Agreement. 

b. At the end of the Term, the Lessee shall either (choose one): 

• Return the Vehicle to the Lessor in accordance with Section 10, or 

• Purchase the Vehicle under the terms specified in Section [insert if there is a purchase option]. 

3. Lease Payments 

a. The Lessee shall pay to the Lessor a monthly lease payment of [Dollar Amount in USD], due on or before the [Due Date, e.g., 1st] day of each month, beginning on [First Payment Date]. 

b. Payments shall be made by [Method of Payment, e.g., check, electronic transfer], or as otherwise directed by the Lessor in writing. 

c. If the payment is not received by the Lessor within [Grace Period, e.g., 5 days] after the due date, a late fee of [Late Fee Amount or Percentage] may be imposed, to the extent permitted by law. 

4. Security Deposit (If Applicable) 

a. The Lessee shall pay a security deposit in the amount of [Security Deposit Amount in USD] upon execution of this Agreement or before taking possession of the Vehicle. 

b. The security deposit shall serve as security for the Lessee’s obligations under this Agreement. In the event of damages, unpaid fees, or other breaches, the Lessor may deduct from the deposit. 

c. Within [Number of Days] following the Lessee’s return of the Vehicle and the end of this Agreement, any remaining balance of the deposit shall be refunded to the Lessee, subject to an itemized statement of any deductions, as required by applicable law. 

5. Insurance 

a. The Lessee shall maintain, at the Lessee’s expense, a policy of comprehensive automobile insurance on the Vehicle, including collision coverage, liability coverage (bodily injury and property damage), and any other coverage required by law or reasonably required by the Lessor. 

b. The Lessor may require the Lessee to include the Lessor as an additional insured or loss payee on the policy. 

c. Proof of valid insurance shall be provided to the Lessor upon request and/or before taking possession of the Vehicle. 

6. Maintenance And Repairs 

a. The Lessee shall be responsible for routine maintenance and care, including oil changes, tire rotations, and other regular servicing recommended by the manufacturer. 

b. The Lessee shall promptly notify the Lessor of any needed major repairs or defects in the Vehicle. 

c. Unless otherwise stated, the Lessee is responsible for all repairs and maintenance costs during the Term. The Vehicle must be returned in good operating condition, reasonable wear and tear excepted. 

7. Mileage And Use Restrictions 

a. The Lessee is limited to [Mileage Limit, e.g., 12,000 miles] per year (or pro-rated over the Term if shorter). 

b. For any miles exceeding the total allowed over the Term, the Lessee shall pay an excess mileage charge of [Amount in USD] per mile. 

c. The Lessee shall only use the Vehicle in a lawful manner and shall not use it for racing, off-roading (unless specified), ride-share (e.g., Uber, Lyft) services, or commercial delivery services unless expressly authorized in writing by the Lessor. 

8. Ownership And Title 

a. Title to the Vehicle remains with the Lessor at all times during the Term of this Agreement. The Lessee acquires no ownership or equity in the Vehicle by virtue of this Agreement. 

b. The Lessee shall not encumber or permit any lien to be placed on the Vehicle. 

9. Default And Remedies

a. The Lessee shall be in default if the Lessee fails to make any payment when due, breaches any other material provision of this Agreement, or otherwise violates applicable law in connection with the Vehicle. 

b. In the event of default, the Lessor may terminate this Agreement, repossess the Vehicle, and seek any other remedies available under law. 

c. The Lessee may be liable for any deficiency, fees, or damages incurred as a result of repossession, including reasonable attorney’s fees and collection costs, to the extent permitted by law. 

10. Return Of The Vehicle 

a. At the end of the Term or upon earlier termination, the Lessee shall return the Vehicle to the Lessor at [Location], unless another location is agreed upon in writing. 

b. The Vehicle shall be returned in the same condition as received, subject to normal wear and tear. 

c. The Lessee shall remove any personal property before returning the Vehicle. The Lessor is not responsible for any items left in the Vehicle. 

11. Option To Purchase (If Applicable) 

a. If the Parties agree that the Lessee shall have an option to purchase the Vehicle at the end of the Term, such terms (purchase price, financing, etc.) must be detailed in a written Addendum attached to this Agreement. 

b. Any exercise of the purchase option shall be in accordance with the procedures and deadlines specified in the Addendum. 

12. Liability And Indemnification 

a. The Lessee shall assume all liability during the Term for any bodily injury, property damage, or other loss arising from the operation or use of the Vehicle, except to the extent caused by the Lessor’s negligence or willful misconduct. 

b. The Lessee agrees to defend, indemnify, and hold the Lessor harmless from any claims, liabilities, or expenses (including reasonable attorney’s fees) resulting from the Lessee’s use or misuse of the Vehicle. 

13. Governing Law And Dispute Resolution 

a. This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles. 

b. Any dispute arising under or relating to this Agreement shall be resolved in the state or federal courts located in [County/City], [State]. The Parties consent to the jurisdiction and venue of these courts. 

14. Entire Agreement 

This Agreement constitutes the entire understanding between the Parties regarding the lease of the Vehicle and supersedes all prior negotiations, representations, or agreements, whether written or oral. No modification of this Agreement shall be binding unless in writing and signed by both Parties. 

15. Severability 

If any provision of this Agreement is held invalid or unenforceable, all other provisions shall continue in full force and effect. 

16. Notices 

All notices required or permitted by this Agreement shall be in writing and shall be deemed properly given if delivered personally, sent by certified or registered mail with return receipt requested, or by a recognized courier service, to the addresses listed above (or as either Party may designate by written notice). 

17. Signatures

IN WITNESS WHEREOF, the Parties have executed this Car Lease Agreement on the date(s) indicated below. 

Lessor: 

[Name of Lessor] 

Signature: ______________________________ 

Date: ______________________________ 

Lessee: 

[Name of Lessee] 

Signature: ______________________________ 

Date: ______________________________