Truck Lease Agreement Template

Truck Lease Agreement Template

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

Lessor
[Lessor Legal Name]
[Entity Type]
[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. Truck and Lease Overview

1.1 Leased Truck. Lessor leases to Lessee the following truck (the “Truck”):

• Truck Type: [Box Truck / Straight Truck / Tractor Unit / Dump Truck / Other]

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Body / Configuration: [Body Type / Configuration]

• Vehicle Identification Number (VIN): [VIN]

• License Plate Number: [Plate Number]

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

1.2 Intended Use. The Truck is leased for [business use / personal and business use] in connection with [Description of Business or Purpose], subject to the restrictions in this Agreement.

1.3 No Ownership Transfer. This is a lease only. Lessee receives the right to use the Truck 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 (the “Lease Term”).

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

• Delivery Location: [Delivery Address or Location]

on or about the Lease Start Date.

2.3 Condition Record. At delivery, the Parties may complete and sign a condition report noting mileage, fuel level, tire condition, body condition, interior, and any pre-existing damage. Lessee acknowledges receiving the Truck in good operating condition, except as noted in the report.

2.4 Holdover. If Lessee keeps the Truck 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 other amounts due.

3. Lease Payments and Amount Due at Signing

3.1 Periodic Lease Payments. Lessee shall pay Lessor:

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

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 Truck, Lessee shall pay:

• First Lease Payment: [Currency and Amount]

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

• Initial fees and taxes (if any): [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Taxes and Regulatory Fees. Lessee is responsible for applicable sales, use, or similar taxes and any regulatory fees related to the Truck 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] (the “Security Deposit”).

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

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

5. Mileage, Use Limits, and Operating Restrictions

5.1 Mileage or Hours Allowance. Lessee is allowed up to:

• [Number] miles / kilometers per year, or

• [Number] engine hours per year

for a total allowed use of [Total Number] miles / kilometers or hours during the Lease Term.

5.2 Excess Use Charges. If Lessee exceeds the allowed mileage or hours, Lessee shall pay an excess use fee of [Currency and Amount] per mile / kilometer / hour over the limit.

5.3 Permitted Use. Lessee may use the Truck only:

• For lawful purposes and legal cargo;

• On roads and areas where the Truck’s size and weight are permitted;

• In accordance with all transport, safety, and environmental laws and regulations.

5.4 Prohibited Use. Lessee shall not:

• Use the Truck for illegal activities or transport of illegal goods;

• Overload or improperly load the Truck;

• Operate the Truck off-road, except as reasonably necessary for loading/unloading;

• Alter or modify the Truck’s structure or safety systems;

• Sub-lease the Truck or allow unauthorized operators to use it.

6. Drivers and Licensing

6.1 Authorized Drivers. Only the following individuals may operate the Truck:

• [Authorized Driver Name 1]

• [Authorized Driver Name 2]

• [Additional Authorized Driver Names]

6.2 Licensing Requirements. Each authorized driver must:

• Hold and maintain a valid driver’s license appropriate for the Truck and its GVWR, including any required commercial driver’s license (CDL);

• Meet any age and experience requirements specified by Lessor and law;

• Comply with all Hours-of-Service or similar rules, if applicable.

6.3 Compliance with Policies. Lessee shall ensure that all drivers comply with any written safety, maintenance, or operating policies provided by Lessor.

7. Condition, Inspection, and Maintenance

7.1 Duty of Care. Lessee shall:

• Use the Truck in a careful and safe manner;

• Keep the Truck reasonably clean;

• Protect the Truck from avoidable damage and corrosion;

• Promptly report any warning lights, mechanical issues, or accidents to Lessor.

7.2 Routine Maintenance. Routine maintenance responsibilities are as follows (attach a maintenance schedule if needed):

• [Lessor / Lessee] is responsible for oil changes, filters, and scheduled servicing;

• [Lessor / Lessee] is responsible for tires, brakes, lights, and alignment;

• [Lessor / Lessee] is responsible for any manufacturer-recommended inspections.

7.3 Repairs. Repairs due to normal mechanical failure or manufacturer defects are the responsibility of [Lessor / Lessee], subject to any warranty and law. Repairs required due to misuse, overloading, neglect, or prohibited use are the responsibility of Lessee.

7.4 Unauthorized Modifications. Lessee shall not make structural modifications, install permanent equipment, or change branding or paint without Lessor’s written consent, except temporary markings or removable signage agreed in advance.

8. Insurance and Risk of Loss

8.1 Required Insurance. Throughout the Lease Term, Lessee shall maintain insurance covering the Truck with at least:

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

• Physical damage coverage (collision and comprehensive) for the Truck with a deductible not exceeding [Currency and Amount];

• Cargo or other specialized coverage if 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 Truck while in Lessee’s possession or control. Insurance proceeds shall be applied to repair or, in the event of total loss, to lease obligations as provided by law and this Agreement.

9. Registration, Title, Taxes, and Compliance

9.1 Title. Legal title to the Truck remains with Lessor or any designated finance party. Lessee shall not attempt to transfer or encumber title.

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

9.3 Taxes and Road Charges. Unless otherwise stated in writing, Lessee is responsible for ongoing registration fees, road or weight-distance taxes, and similar charges related to operation of the Truck.

9.4 Regulatory Compliance. Lessee is responsible for compliance with all applicable regulations, including vehicle weight limits, route restrictions, hours-of-service rules, permits, and inspections required for the Truck and its operation.

10. Violations, Weigh Stations, and Tolls

10.1 Responsibility. Lessee is responsible for all traffic tickets, parking fines, tolls, weigh station violations, and other penalties arising from use of the Truck during the Lease Term.

10.2 Administrative Fees. If Lessor receives any 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 Truck, Lessee shall:

• Ensure safety and contact emergency services if needed;

• Notify law enforcement where required;

• Notify Lessor as soon as reasonably possible;

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

11.2 Post-Accident Handling. Lessor will determine where and how repairs are performed unless otherwise agreed. Lessee shall cooperate with Lessor and insurers in investigating and handling claims.

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

• Lessee becomes insolvent, files for bankruptcy, or ceases business operations (if a business lessee).

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 Truck peacefully and in compliance with law;

• Apply the Security Deposit toward amounts owed;

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

13. End-of-Lease Return and Purchase Option

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

• At Return Location: [Return Address or 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:

• Significant body damage, bent frame, or rust from neglect;

• Cracked glass, damaged mirrors, or broken lights;

• Excessively worn or mismatched tires;

• Damaged interior, missing equipment, tools, or safety gear;

• Evidence of misuse, overloading, or unapproved modifications.

13.3 Purchase Option (if applicable).

☐ Lessee has an option to purchase the Truck 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 by 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 driver’s use, operation, or loading of the Truck, 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 goods transported in the Truck;

• Loss or damage to Lessee’s personal property;

• Indirect, incidental, or consequential damages;

• Loss of profits or business interruption caused by use or non-availability of the Truck.

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 have 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 Truck and supersedes all prior discussions or agreements on this subject.

16.2 Amendments. Any amendment or modification 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 Truck, 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 remain in full force and effect.

16.6 Counterparts and Electronic Signatures. This Agreement may be signed in counterparts and by electronic signatures. Each counterpart shall be deemed an original, and together they constitute one instrument.

17. Signatures

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

Lessor

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

Lessee

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