Vehicle Lease Agreement Template

Vehicle Lease Agreement Template

This Vehicle 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. Vehicle and Lease Overview

1.1 Leased Vehicle. Lessor agrees to lease to Lessee the following motor vehicle (“Vehicle”):

• Make: [Make]

• Model: [Model]

• Year: [Year]

• Color: [Color]

• Body Type: [Sedan / SUV / Van / Truck / Other]

• Vehicle Identification Number (VIN): [VIN]

• License Plate Number: [Plate Number]

1.2 Purpose. The Vehicle is leased for [personal use / business use / both personal and business use], subject to the terms of this Agreement.

1.3 No Ownership Transfer. This Agreement is a lease only. Lessee does not acquire any ownership interest in the Vehicle unless an end-of-lease purchase option is clearly exercised and completed under Section 13.

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 according to this Agreement (“Lease Term”).

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

• Delivery Location: [Address or Location]

on or about the Lease Start Date, in the condition described in Section 7.

2.3 Early Possession or Holdover.

• If Lessee takes possession earlier than the Lease Start Date with Lessor’s consent, charges may begin on the earlier date.

• If Lessee keeps the Vehicle after the Lease End Date without a written extension, Lessee may be charged a daily holdover fee of [Currency and Amount] per day, in addition to other amounts due.

3. Lease Payments and Other Charges

3.1 Monthly Lease Payment. Lessee shall pay Lessor a monthly lease payment of:

• Base Monthly Payment: [Currency and Amount]

due on the [Day] of each month during the Lease Term (“Lease Payments”).

3.2 First Payment and Amount Due at Signing. On or before delivery, Lessee shall pay:

• First Monthly Lease Payment: [Currency and Amount]

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

• Up-front fees (if any): [Currency and Amount]

• Taxes or registration charges (if collected at signing): [Currency and Amount]

Total due at signing: [Currency and Amount].

3.3 Taxes and Fees. Lessee is responsible for applicable sales, use, excise, or similar taxes, and any governmental fees related to the Vehicle and this lease, unless Lessor is required by law to pay them.

3.4 Late Payments. Any Lease Payment not received by Lessor within [Number] days after the due date may be subject to:

• 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 Amount. If required, 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 mileage charges, repair of damage beyond normal wear and tear, cleaning fees, or other amounts owed under this Agreement.

4.3 Return of Deposit. Any remaining balance of the Security Deposit shall be returned to Lessee within [Number] days after the Vehicle is returned and inspected, less itemized deductions.

5. Mileage Limits and Usage

5.1 Mileage Allowance. Lessee is allowed up to:

• [Number] miles / kilometers per year

during the Lease Term, for a total allowed mileage of [Total Number] miles / kilometers.

5.2 Excess Mileage Charge. If Lessee exceeds the total allowed mileage, Lessee shall pay an excess mileage fee of [Currency and Amount] per mile / kilometer over the limit.

5.3 Permitted Use. Lessee shall use the Vehicle only:

• For lawful purposes;

• On public roads and reasonable access ways; and

• In compliance with all traffic, safety, and environmental laws.

5.4 Prohibited Use. Lessee shall not:

• Use the Vehicle for racing, off-road driving, or stunt driving;

• Use the Vehicle for ride-hailing, delivery, or commercial transport unless expressly authorized;

• Operate the Vehicle while under the influence of alcohol, drugs, or impairing substances;

• Sub-lease, rent, or otherwise transfer possession of the Vehicle to others;

• Allow any non-authorized driver to operate the Vehicle.

6. Drivers and Licensing

6.1 Authorized Drivers. Only the following individuals may drive the Vehicle:

• [Lessee Full Name]

• [Additional Authorized Driver Name(s)]

6.2 Driver Requirements. Each authorized driver must:

• Hold a valid driver’s license for the Vehicle;

• Meet age and driving-record requirements specified by Lessor and law;

• Comply with all conditions of this Agreement.

7. Condition, Inspection, and Maintenance

7.1 Condition at Delivery. The Parties may complete a written inspection report and/or photographs at delivery to record the Vehicle’s condition and any prior damage. Lessee acknowledges receipt of the Vehicle in good working order and clean condition, except as noted in that report.

7.2 Normal Wear and Tear. Normal wear and tear includes minor cosmetic marks and expected deterioration from ordinary use. Damage beyond normal wear and tear (such as deep dents, cracked glass, missing parts, or interior abuse) may be charged to Lessee at end of lease.

7.3 Lessee’s Duty of Care. Lessee shall:

• Take reasonable care of the Vehicle;

• Keep the Vehicle locked and secured when not in use;

• Protect the Vehicle from avoidable damage;

• Promptly report any mechanical issues or warning lights to Lessor or a designated service provider.

7.4 Maintenance and Repairs.

• Routine maintenance responsibility: [Lessor / Lessee] is responsible for oil changes, scheduled servicing, and similar routine maintenance as per manufacturer guidelines.

• Non-routine repairs: Costs of repairs due to manufacturing defects or normal mechanical failure are the responsibility of [Lessor / Lessee], subject to warranty and law.

• Repairs due to misuse, negligence, or prohibited use are the responsibility of Lessee.

7.5 Unauthorized Repairs. Lessee shall not authorize major repairs or modifications without Lessor’s written consent, except in emergencies when Lessor cannot be reached and immediate action is reasonably necessary for safety.

8. Insurance and Risk of Loss

8.1 Required Insurance. Throughout the Lease Term, Lessee shall maintain insurance on the Vehicle with at least the following coverage:

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

• Collision coverage;

• Comprehensive coverage;

• Any additional coverage required by law or specified by Lessor.

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

8.2 Proof of Insurance. Lessee shall provide evidence of required insurance before taking possession and upon request during the Lease Term. Failure to maintain insurance is a material breach of this Agreement.

8.3 Risk of Loss. Lessee bears the risk of loss, theft, or damage to the Vehicle during the Lease Term, except to the extent covered by Lessor’s own insurance or caused by Lessor. Insurance proceeds shall be applied to repair or, in the case of total loss, to lease obligations as provided by law and this Agreement.

9. Registration, Title, and Taxes

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

9.2 Registration. Vehicle registration shall remain in the name of Lessor or as required by law. Lessee shall cooperate with any registration renewals or inspections.

9.3 Taxes and Fees. Unless otherwise stated, Lessee is responsible for ongoing registration fees, property or road taxes, and similar recurring charges relating to the Vehicle.

10. Traffic Violations, Fines, and Tolls

10.1 Responsibility. Lessee is responsible for all traffic tickets, parking fines, tolls, congestion charges, and similar penalties relating to use of the Vehicle during the Lease Term.

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

11. Accidents, Damage, Loss, and Theft

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

• Ensure safety and contact emergency services if needed;

• Notify the police where required by law;

• Notify Lessor as soon as reasonably possible with details;

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

11.2 Cooperation. Lessee shall cooperate with Lessor and any insurer in investigating and handling claims, including providing statements and attending hearings if required.

11.3 Repairs After Damage. Unless otherwise agreed, Lessor will determine where and how the Vehicle is repaired. Deductibles, uninsured amounts, and damage beyond insurance coverage may be charged to Lessee, to the extent allowed by law.

12. Default and Remedies

12.1 Events of Default. Lessee shall be in default if:

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

• Lessee fails to maintain required insurance;

• Lessee uses the Vehicle in a prohibited manner or materially breaches this Agreement;

• Lessee becomes insolvent, enters bankruptcy, or ceases 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 any legal limits;

• Terminate this Agreement;

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

• Apply the Security Deposit toward amounts owed;

• Seek damages, costs, interest, and reasonable enforcement expenses.

13. Early Termination and End-of-Lease Options

13.1 Early Termination by Lessee. Lessee may request early termination, subject to Lessor’s consent and payment of:

• Any unpaid Lease Payments and fees;

• An early termination charge of [Currency and Amount] or as calculated under a separate schedule;

• Excess mileage, damage, and other end-of-lease charges.

13.2 Return of Vehicle at End of Lease. Unless Lessee exercises a purchase option (if any), Lessee shall return the Vehicle to Lessor at the end of the Lease Term:

• At [Return Location];

• On or before the Lease End Date;

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

13.3 Excess Wear and Tear. Lessor may charge Lessee for damage beyond normal wear and tear, including but not limited to:

• Broken or cracked glass;

• Major dents, deep scratches, or body damage;

• Damaged or excessively worn tires;

• Stains, burns, tears, or damage to the interior;

• Missing parts or accessories.

13.4 Purchase Option (If Applicable).

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

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

To exercise this option, Lessee must:

• Provide 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 closing date;

• Sign any necessary transfer documents.

☐ 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 out of Lessee’s or any authorized driver’s use or operation of the Vehicle, except to the extent caused by Lessor’s own negligence or wrongdoing.

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

• Loss or damage to personal property left in the Vehicle;

• Indirect, incidental, or consequential damages;

• Loss of profits or business opportunities arising from use or non-availability of the Vehicle.

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 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 constitutes the entire understanding between the Parties regarding the lease of the Vehicle and supersedes all prior discussions or agreements on this subject.

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

16.3 Assignment. Lessee may not assign this Agreement or transfer its rights or obligations without Lessor’s prior written consent. Lessor may assign this Agreement or its interest in the Vehicle, 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 start of this Agreement or to updated addresses notified in writing.

16.5 Severability. If any provision of this Agreement is found 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 signature, each of which shall be treated as an original and together form one instrument.

17. Signatures

By signing below, the Parties confirm that they have read, understood, and agree to be bound by this Vehicle 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]