Trailer Lease Agreement Template

Trailer Lease Agreement Template

This Trailer Lease Agreement (“Agreement”) is made as of [Date] between:

Lessor
[Lessor Legal Name]
[Entity Type, if applicable]
[Registered Address or Principal Place of Business]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Lessor”)

and

Lessee
[Lessee Full Name or Business Name]
[Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Phone Number]
Email: [Email Address]

(“Lessee”).

Lessor and Lessee may be referred to individually as a “Party” and together as the “Parties”.

1. Trailer and Lease Overview

1.1 Leased Trailer. Lessor leases to Lessee the following trailer (“Trailer”):

• Trailer Type: [Utility / Cargo / Equipment / Car Hauler / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Axles: [Single / Tandem / Other]

• Gross Vehicle Weight Rating (GVWR): [Weight Rating]

• Trailer Identification / VIN: [VIN]

• License Plate Number: [Plate Number]

1.2 Purpose of Lease. The Trailer is leased for [personal use / business use / both personal and business use] in accordance with the terms of this Agreement.

1.3 No Ownership Transfer. This Agreement is a lease only. Lessee receives the right to use the Trailer during the Lease Term but does not acquire any ownership interest, unless an end-of-lease purchase option in Section 13 is properly exercised.

2. Lease Term and Delivery

2.1 Lease Term. The lease term begins on:

• Lease Start Date: [Start Date]

and continues until:

• Lease End Date: [End Date]

unless earlier terminated under this Agreement (“Lease Term”).

2.2 Delivery and Acceptance. Lessor shall deliver, and Lessee shall accept, the Trailer at:

• Delivery Location: [Address or Location]

on or about the Lease Start Date. The Parties may complete a written condition report at delivery.

2.3 Holdover. If Lessee keeps the Trailer after the Lease End Date without a signed extension, Lessee may be charged a holdover fee of [Currency and Amount] per day, in addition to any other amounts due.

3. Lease Payments and Other Charges

3.1 Periodic Lease Payments. Lessee shall pay Lessor:

• Lease Payment Amount: [Currency and Amount] per [month / week / other period]

Each payment is due on the [Day] of each [month / period] during the Lease Term (“Lease Payments”).

3.2 Amount Due at Signing. On or before delivery of the Trailer, Lessee shall pay:

• First Lease Payment: [Currency and Amount]

• Security Deposit (if required): [Currency and Amount]

• Any documented fees or taxes due at signing: [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Taxes and Fees. Lessee is responsible for applicable sales, use, or similar taxes and governmental fees relating to the Trailer and this lease, except where Lessor is required by law to pay them.

3.4 Late Payments. Any Lease Payment not received within [Number] days after the due date may incur:

• A late fee of [Currency and Amount] or [Percentage]% of the overdue amount; and

• Interest on the overdue balance at [Percentage]% per year (or the maximum allowed by law), calculated from the day after the due date until paid.

4. Security Deposit

4.1 Deposit. Lessee shall pay a refundable security deposit of [Currency and Amount] (“Security Deposit”).

4.2 Use of Deposit. Lessor may apply the Security Deposit to unpaid Lease Payments, excess use or mileage charges, repair of damage beyond normal wear and tear, cleaning fees, or any other amounts owed under this Agreement.

4.3 Return of Deposit. After the Trailer is returned and inspected, any remaining Security Deposit balance shall be returned to Lessee within [Number] days, together with an itemized statement of deductions, if any.

5. Permitted Use, Load Limits, and Towing

5.1 Permitted Use. Lessee may use the Trailer only to tow and carry goods, equipment, or vehicles that are legal, properly secured, and within the weight and size limits specified in this Agreement and by law.

5.2 Prohibited Use. Lessee shall not:

• Use the Trailer for any illegal purpose;

• Use the Trailer off-road or in hazardous terrain, except as reasonably necessary for loading/unloading;

• Use the Trailer for passenger transport;

• Modify, alter, or structurally change the Trailer;

• Sub-lease, rent, or otherwise transfer possession of the Trailer without Lessor’s written consent.

5.3 Load Limits. Lessee shall not:

• Exceed the Trailer’s GVWR of [Weight Rating];

• Exceed maximum load per axle of [Axle Load Rating];

• Exceed the towing vehicle’s rated towing capacity.

5.4 Load Securement. Lessee is responsible for properly loading and securing all cargo or vehicles on the Trailer using appropriate tie-downs, chains, wheel nets, chocks, and similar equipment.

5.5 Towing Vehicle and Hitch. Lessee shall use a towing vehicle that is properly rated and equipped, including:

• A hitch with capacity at or above the Trailer’s GVWR;

• Properly attached safety chains or cables;

• Electrical connection for lights and, if applicable, Trailer brakes.

Lessee is responsible for ensuring safe connection and operation at all times.

6. Drivers and Operators

6.1 Authorized Operators. Only the following individuals may tow or operate the Trailer:

• [Lessee Full Name]

• [Additional Authorized Operator Name(s)]

6.2 Operator Requirements. Each authorized operator must:

• Hold a valid driver’s license appropriate for the towing vehicle and load;

• Meet any age and driving-record criteria required by law or Lessor;

• Comply with all terms of this Agreement.

7. Condition, Inspection, and Maintenance

7.1 Condition at Delivery. The Parties may complete and sign a condition report describing the Trailer’s state at delivery, including tires, lights, brakes (if equipped), frame, body, ramps, and accessories. Lessee acknowledges receiving the Trailer in good working order and clean condition, except as noted.

7.2 Duty of Care. Lessee shall:

• Use the Trailer in a careful and safe manner;

• Inspect tires, hitch, safety chains, and lights periodically;

• Keep the Trailer locked or secured when stored;

• Protect the Trailer from avoidable damage, corrosion, or misuse.

7.3 Routine Maintenance. Routine maintenance responsibilities are as follows:

• [Lessor / Lessee] is responsible for scheduled inspections and major maintenance;

• [Lessor / Lessee] is responsible for tire replacement, brake adjustments, and similar service.

Any agreed maintenance schedule may be attached as an exhibit to this Agreement.

7.4 Repairs. Repairs due to defects in materials or workmanship are the responsibility of [Lessor / Lessee], subject to any warranties and law. Repairs required due to misuse, overloading, neglect, or prohibited use are the responsibility of Lessee.

7.5 Unauthorized Repairs. Lessee shall not perform or authorize structural modifications or major repairs without Lessor’s written consent, except in emergency situations where immediate action is reasonably required for safety and Lessor cannot be reached.

8. Insurance and Risk of Loss

8.1 Required Insurance. Throughout the Lease Term, Lessee shall maintain insurance covering operation and use of the Trailer, either through the towing vehicle’s policy or a separate policy, with at least:

• Liability coverage not less than [Currency and Amount] per person and [Currency and Amount] per occurrence;

• Physical damage (collision and comprehensive) coverage for the Trailer, if required by Lessor;

• Any additional coverage required by law or by Lessor in writing.

Lessor may be named as loss payee and/or additional insured, as applicable.

8.2 Proof of Insurance. Lessee shall provide proof of required insurance before taking possession and at any time upon Lessor’s request. Failure to maintain or prove insurance is a material breach of this Agreement.

8.3 Risk of Loss. Except to the extent caused by Lessor, Lessee bears the risk of loss, theft, or damage to the Trailer while in Lessee’s possession or control. Insurance proceeds shall be applied to repair or, in the case of total loss, to lease obligations as permitted by law and this Agreement.

9. Registration, Title, and Taxes

9.1 Title. Legal title to the Trailer remains with Lessor or any financing party designated by Lessor. Lessee shall not attempt to transfer, encumber, or register title in its own name.

9.2 Registration. Vehicle registration shall remain in the name of Lessor or as otherwise required by law. Lessee shall cooperate with renewals, inspections, or documentation as reasonably requested.

9.3 Ongoing Taxes and Fees. Unless otherwise stated in writing, Lessee is responsible for recurring registration fees, property or road taxes, and similar charges relating to the Trailer during the Lease Term.

10. Violations, Fines, and Tolls

10.1 Responsibility. Lessee is responsible for traffic violations, parking tickets, tolls, and similar charges connected with use of the Trailer during the Lease Term.

10.2 Processing Charges. If Lessor receives notices of violations or tolls, Lessor may pay or transfer such charges as permitted and bill Lessee for the amounts plus an administrative fee of [Currency and Amount] per incident.

11. Accidents, Damage, Loss, and Theft

11.1 Incident Reporting. In the event of any accident, damage, loss, or theft involving the Trailer, Lessee shall:

• Ensure safety and contact emergency services if needed;

• Notify law enforcement where required by law;

• Notify Lessor as soon as reasonably possible;

• Provide copies of any reports, citations, notices, or insurance correspondence.

11.2 Repairs After Damage. Lessor will decide where and how the Trailer is repaired, unless otherwise agreed. Deductibles, uninsured amounts, and damage not covered by insurance may be charged to Lessee, to the extent allowed by law.

11.3 Total Loss or Theft. If the Trailer is stolen or deemed a total loss, Lessee may be liable for the fair market value of the Trailer at the time of loss, less any insurance proceeds received by Lessor, subject to applicable law and the terms of this Agreement.

12. Default and Remedies

12.1 Events of Default. Lessee is in default if:

• Lessee fails to pay any Lease Payment or other amount when due and such failure continues for [Number] days after any required notice;

• Lessee fails to maintain required insurance;

• Lessee materially breaches this Agreement, including prohibited use, overloading, or unsafe operation;

• Lessee becomes insolvent, files for bankruptcy, or ceases business operations (for business lessees).

12.2 Lessor’s Remedies. Upon default and subject to applicable law, Lessor may:

• Declare all remaining Lease Payments immediately due and payable, subject to legal limits;

• Terminate this Agreement;

• Recover possession of the Trailer peacefully and in compliance with law;

• Apply the Security Deposit toward amounts owed;

• Seek damages, interest, and reasonable costs of enforcement, including collection and legal expenses.

13. End-of-Lease Return and Purchase Option

13.1 Return of Trailer. Unless Lessee exercises a purchase option under Section 13.3, Lessee shall return the Trailer to Lessor at the end of the Lease Term:

• At [Return Location];

• On or before the Lease End Date;

• Clean and free of excessive dirt, debris, or contamination;

• In substantially the same condition as at delivery, normal wear and tear excepted.

13.2 Excess Wear and Tear. Lessor may charge Lessee for damage or wear beyond normal, including:

• Structural damage, bent frame, or broken welds;

• Cracked or broken lights, fenders, or ramps;

• Damaged, mismatched, or excessively worn tires;

• Missing accessories, such as ramps, spare tire, or tie-down hardware;

• Evidence of misuse, overloading, or corrosive exposure.

13.3 Purchase Option (if applicable).

☐ Lessee has an option to purchase the Trailer at the end of the Lease Term for:

• Purchase Price (Residual Value): [Currency and Amount]

To exercise this option, Lessee shall:

• Give written notice of intent to purchase at least [Number] days before the Lease End Date;

• Pay the Purchase Price plus applicable taxes and fees on the agreed closing date;

• Sign any documents required to transfer title.

☐ No purchase option is granted under this Agreement.

14. Indemnification and Limitation of Liability

14.1 Lessee’s Indemnity. To the extent permitted by law, Lessee shall indemnify and hold Lessor harmless from third-party claims, damages, fines, and expenses arising from Lessee’s or any authorized operator’s use, towing, loading, or operation of the Trailer, except to the extent caused by Lessor’s own negligence or wrongful acts.

14.2 Lessor’s Liability. To the extent permitted by law, Lessor is not liable for:

• Loss or damage to cargo or vehicles loaded on the Trailer;

• Loss or damage to Lessee’s personal property;

• Indirect, incidental, special, or consequential damages;

• Loss of profits or business interruption arising from use or non-availability of the Trailer.

15. Governing Law and Dispute Resolution

15.1 Governing Law. This Agreement is governed by the laws of [State/Province, Country], without regard to conflict-of-law rules.

15.2 Dispute Resolution. The Parties shall first attempt in good faith to resolve disputes through informal discussions. If unresolved, disputes may be brought before the courts of [City, State/Province, Country] or resolved by [mediation / arbitration] if the Parties sign a separate written agreement to that effect.

16. Miscellaneous

16.1 Entire Agreement. This Agreement contains the entire understanding between the Parties regarding the lease of the Trailer and supersedes all prior discussions or agreements on this subject.

16.2 Amendments. Any change or amendment must be in writing and signed or clearly agreed by both Parties.

16.3 Assignment. Lessee may not assign this Agreement or transfer rights or obligations without Lessor’s prior written consent. Lessor may assign this Agreement or its interest in the Trailer, subject to applicable law.

16.4 Notices. Formal notices under this Agreement shall be in writing and delivered personally, by certified or registered mail, by recognized courier, or by email (with confirmation if required by law) to the addresses listed at the beginning of this Agreement or to updated addresses provided in writing.

16.5 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

16.6 Counterparts and Electronic Signatures. This Agreement may be signed in counterparts and by electronic signature, each of which shall be deemed an original and all of which together form one instrument.

17. Signatures

By signing below, the Parties confirm that they have read, understood, and agree to be bound by this Trailer Lease Agreement.

Lessor

Signature: _______________________________
Name: [Authorized Signatory Name]
Title: [Title]
Date: [Date]

Lessee

Signature: _______________________________
Name: [Lessee Full Name]
Driver’s License Number: [Number]
Issuing State/Province/Country: [Jurisdiction]
Date: [Date]