Car Lease Agreement Template – California

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], VIN [VIN], License Plate [Plate Number]. List included accessories (e.g., roof racks, EV chargers, telematics) in an attached inventory signed by both Parties. Reference any transferable warranties or service plans to avoid ambiguity.

2. Lease Term

The Term begins on [Commencement Date] and continues until [End Date], unless terminated earlier under this Agreement. At Term end, the Lessee shall either return the Vehicle per Section 10 or, if applicable, exercise a purchase option set in an addendum. Schedule a pre‑return inspection at least [X] days before Term end to assess wear.

3. Lease Payments

The Lessee shall pay a monthly lease payment of $[Amount], due on or before the [Due Date] each month, starting [First Payment Date]. Payments by [Method]; late payments after a grace period of [X] days may incur a fee of [Fee] where permitted by law. Receipts or portal confirmations constitute proof of payment; returned payments may incur reasonable charges.

4. Security Deposit (If Applicable)

A security deposit of $[Amount] is due upon execution or before delivery and may secure performance of the Lessee’s obligations. Deductions may be made for unpaid amounts, excess wear, or breaches; any remainder will be refunded within [Days] with an itemized statement. The deposit is not a prepayment of rent unless expressly stated.

5. Insurance

The Lessee shall maintain comprehensive auto insurance including collision and liability coverage as required by law and by the Lessor. If required, the Lessor shall be listed as additional insured and/or loss payee; proof of coverage must be provided before possession and upon request. Failure to maintain insurance is a material breach and may result in termination and repossession as allowed by law.

6. Maintenance and Repairs

The Lessee is responsible for routine maintenance per manufacturer guidance and shall promptly report defects or needed major repairs. Unless otherwise agreed, the Lessee bears costs for maintenance and non‑warranty repairs during the Term; return in good working order, reasonable wear excepted. Unauthorized modifications or neglect may be treated as excess wear with related charges.

7. Mileage and Use Restrictions

The Lessee is limited to [Mileage Limit] miles per year (pro‑rated if shorter); excess mileage charged at $[Rate] per mile. Use must be lawful; no racing, unauthorized off‑roading, ride‑share or commercial delivery without written consent. Cross‑border travel or towing requires prior written approval if restricted by policy.

8. Ownership and Title

Title remains with the Lessor throughout the Term; the Lessee acquires no ownership or equity. The Lessee shall not permit liens on the Vehicle and shall notify the Lessor of any attempted lien. Registration documents shall reflect the Lessor’s title interest.

9. Default and Remedies

Default includes failure to timely pay, material breach, or unlawful use. Upon default, the Lessor may terminate, repossess, and pursue lawful remedies including recovery of reasonable fees and costs where permitted. The Lessee remains responsible for deficiencies as allowed by law.

10. Return of the Vehicle

On expiration or earlier termination, the Lessee shall return the Vehicle to [Location] in the same condition as received, less normal wear. Remove personal items and provide all keys, fobs, charging cables, manuals, and accessories. A joint inspection will document condition and any amounts due for excess wear or missing items.

11. Option to Purchase (If Applicable)

If a purchase option exists, terms including price and timing will be detailed in a written addendum executed by both Parties. Any exercise must follow procedures and deadlines in the addendum, including proof of funds or financing approval. Failure to meet conditions may void the option.

12. Liability and Indemnification

The Lessee assumes liability during the Term for injury, damage, or loss arising from operation, except to the extent caused by the Lessor’s negligence or willful misconduct. The Lessee agrees to defend, indemnify, and hold the Lessor harmless from claims and expenses within legal limits. Insurance coverage shall be primary unless otherwise required by law.

13. Governing Law and Dispute Resolution

This Agreement is governed by the laws of [State] without regard to conflicts principles. Any dispute shall be resolved in the courts of [County/City], [State], with consent to jurisdiction and venue. Alternative dispute resolution may be elected by written agreement.

14. Entire Agreement

This Agreement supersedes prior discussions or understandings regarding the Vehicle lease. No modification is binding unless in writing signed by both Parties. Headings are for convenience only and do not affect interpretation.

15. Severability

If any provision is held invalid, the remaining provisions continue in full force and effect. The Parties shall adopt a valid provision closest in intent to the original. Non‑waiver: failure to enforce any provision is not a waiver of future enforcement.

16. Notices

All notices must be in writing and are deemed given if delivered personally, by certified/registered mail with return receipt, or recognized courier to the addresses above. Either Party may update its notice address by written notice. Email copies may be sent for convenience but do not replace formal notice unless expressly agreed.

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: ______________________________