Vehicle Rental Agreement Template

Vehicle Rental Agreement Template

This Vehicle Rental Agreement (“Agreement”) is made as of [Date] between:

Owner / Rental Company
[Owner / Company 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]

(“Owner”)

and

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

(“Renter”).

Owner and Renter may be referred to individually as a “Party” and together as the “Parties”.

1. Vehicle Details

1.1 Vehicle. Owner rents to Renter the following motor vehicle (the “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 Accessories and Equipment. The rental includes:

• [Spare tire, jack, tools]

• [GPS / navigation device]

• [Child seat]

• [Other equipment]

All such items must be returned with the Vehicle in substantially the same condition, reasonable wear and tear excepted.

2. Rental Term and Pickup/Return

2.1 Rental Period. The rental period begins on:

• Pickup Date and Time: [Pickup Date and Time]

and ends on:

• Return Date and Time: [Return Date and Time]

(collectively, the “Rental Period”).

2.2 Pickup Location. Renter shall take possession of the Vehicle at:

• Pickup Location: [Exact Address or Description]

2.3 Return Location. Renter shall return the Vehicle to:

• Return Location: [Exact Address or Description]

unless the Parties agree otherwise in writing.

3. Rental Fees and Payment

3.1 Rental Rate. Renter shall pay Owner rental fees as follows:

• Daily / Hourly / Weekly Rate: [Currency and Amount] per [day / hour / week]

• Minimum Rental Charge (if any): [Currency and Amount]

3.2 Estimated Rental Charges. The estimated total rental charges for the initial Rental Period are:

• Estimated Rental Fees: [Currency and Amount]

Actual charges may vary based on mileage, fuel, additional days, or other items under this Agreement.

3.3 Security Deposit. On or before pickup, Renter shall pay a refundable security deposit of [Currency and Amount] (“Security Deposit”). Owner may apply the Security Deposit to unpaid fees, fuel charges, damage, cleaning, or other amounts due under this Agreement. Any remaining balance shall be returned to Renter within [Number] days after the Vehicle is returned and inspected.

3.4 Payment Method. All charges and the Security Deposit shall be paid by [credit card / debit card / cash / bank transfer / other]. Renter authorizes Owner to charge the provided payment method for all amounts due under this Agreement.

4. Mileage and Fuel

4.1 Mileage Allowance.

☐ Unlimited mileage; or
☐ Mileage limited to [Number] miles / kilometers per [day / rental].

If a mileage limit applies, excess mileage will be charged at [Currency and Amount] per [mile / kilometer] over the allowance.

4.2 Fuel Level. The Vehicle is provided with:

• Fuel level at pickup: [Full / ¾ / ½ / Other]

Renter must return the Vehicle with:

☐ The same fuel level; or
☐ A full tank of fuel.

If the Vehicle is returned with less fuel than required, Owner may charge a refueling fee of [Currency and Amount] per [gallon / liter] or a flat fee of [Currency and Amount].

5. Use of Vehicle and Driver Requirements

5.1 Authorized Drivers. Only the following persons may operate the Vehicle:

• [Renter Full Name]

• [Additional Authorized Driver Name(s)]

Each authorized driver must:

• Hold a valid driver’s license for the class of vehicle;

• Meet any age requirements specified by law or Owner; and

• Meet any other criteria specified by Owner at the time of rental.

5.2 Permitted Use. The Vehicle may be used only for lawful purposes and ordinary road use, including [personal / business] transportation as agreed.

5.3 Prohibited Use. Renter and any authorized driver shall not:

• Use the Vehicle for any illegal purpose;

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

• Use the Vehicle for racing, off-road driving, towing (unless expressly allowed), or driving tests;

• Transport hazardous materials in violation of law;

• Allow any unauthorized person to drive the Vehicle;

• Overload the Vehicle beyond the recommended capacity.

Any prohibited use may void coverage and make Renter fully responsible for all losses and damages.

6. Condition, Inspection, and Maintenance

6.1 Condition at Pickup. The Parties shall inspect the Vehicle at pickup and may record the condition and any existing damage on a separate check-in/check-out form or photographs. Renter acknowledges receiving the Vehicle in good working order, clean, and in safe condition, except as noted.

6.2 Renter’s Duty of Care. Renter shall:

• Use the Vehicle carefully and safely;

• Keep the Vehicle locked when not in use;

• Comply with all traffic laws;

• Immediately notify Owner of any defect, malfunction, or warning light.

6.3 Routine Maintenance. Owner is responsible for normal maintenance (oil, major repairs) unless otherwise agreed. Renter shall not perform or authorize significant repairs without Owner’s prior consent, except in an emergency where Owner cannot be contacted.

7. Insurance and Risk Allocation

7.1 Owner’s Insurance (if applicable).

☐ Owner provides basic liability insurance as required by law. Coverage details: [Brief Description].
☐ Owner does not provide insurance. Renter is responsible for maintaining legally required coverage.

7.2 Renter’s Insurance. Renter shall maintain valid auto insurance that covers operation of the Vehicle during the Rental Period, including:

• Liability coverage;

• Collision and comprehensive (if applicable);

• Any other coverage required by law or Owner.

Renter shall provide proof of insurance upon request.

7.3 Damage Waiver / CDW (if offered).

☐ Renter has accepted an optional damage waiver / collision damage waiver (CDW) for an additional fee of [Currency and Amount] per [day / rental], under separate terms.
☐ Renter has declined any optional damage waiver and remains fully responsible for damage as set out herein.

8. Traffic Violations, Fines, and Tolls

8.1 Responsibility. Renter is responsible for all parking tickets, traffic fines, tolls, congestion charges, and similar penalties incurred during the Rental Period.

8.2 Processing Fees. If Owner receives notices of violations or tolls, Owner may pay or transfer liability as permitted and charge Renter the amount plus a reasonable administrative fee of [Currency and Amount] per incident.

9. Accidents, Damage, Loss, and Theft

9.1 Reporting. In the event of an accident, damage, theft, or loss involving the Vehicle, Renter shall:

• Stop and secure the Vehicle if safe;

• Contact emergency services if required;

• Notify Owner as soon as reasonably possible;

• Cooperate with any police or authorities and obtain relevant details;

• Provide Owner with a written description and any available documentation.

9.2 Renter’s Responsibility for Damage. Subject to any applicable insurance or damage waiver, Renter is responsible for:

• Damage to the Vehicle;

• Loss of accessories or equipment;

• Reasonable towing and storage costs;

• Devaluation or loss of use, to the extent permitted by law.

9.3 Theft or Total Loss. In case of theft or total loss, Renter shall cooperate with any investigation and insurance process. Renter may be liable for a deductible or uninsured amounts under applicable policies.

10. Return of Vehicle and Late Return

10.1 Condition on Return. Renter shall return the Vehicle by the end of the Rental Period:

• In substantially the same condition as at pickup, reasonable wear and tear excepted;

• Clean and free of excessive dirt, smoke odor, or pet hair.

If extra cleaning is required, Owner may charge a cleaning fee of [Currency and Amount] or the actual cost of professional cleaning.

10.2 Late Return. If Renter returns the Vehicle after the agreed Return Date and Time without written extension:

• Additional rental fees may be charged at [Currency and Amount] per [hour / day] or according to Owner’s current late return policy;

• Insurance or coverage may not apply beyond the Rental Period, subject to law and policy terms.

10.3 Failure to Return. If Renter fails to return the Vehicle and cannot be contacted within a reasonable time, Owner may treat the Vehicle as missing or unlawfully retained and may report it to law enforcement or take other lawful steps.

11. Indemnity and Limitation of Liability

11.1 Renter’s Indemnity. Renter shall indemnify and hold Owner harmless from third-party claims, damages, fines, and expenses arising from Renter’s or any authorized driver’s use of the Vehicle during the Rental Period, except to the extent caused by Owner’s fault or as limited by law.

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

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

• Indirect, consequential, or punitive damages;

• Business losses or loss of profits arising from the rental.

Owner’s maximum liability, if any, shall not exceed the total rental fees paid under this Agreement, unless prohibited or restricted by applicable law.

12. Termination

12.1 Owner’s Right to Terminate. Owner may terminate this Agreement immediately and demand return of the Vehicle if:

• Renter breaches any material term of this Agreement;

• Renter uses the Vehicle in a prohibited or unsafe manner;

• Renter provides false or misleading information.

12.2 Renter’s Right to Terminate Early. Renter may return the Vehicle before the end of the Rental Period. Unless Owner agrees otherwise, early return does not automatically entitle Renter to a refund of unused rental time.

13. Governing Law and Dispute Resolution

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

13.2 Dispute Resolution. The Parties shall first attempt to resolve any dispute arising from this Agreement through good-faith discussions. If not resolved, disputes may be submitted to [court / arbitration / mediation] in [City, State/Province, Country], subject to applicable law and any separate written agreement.

14. Miscellaneous

14.1 Entire Agreement. This Agreement, together with any attached schedules, represents the entire understanding between the Parties regarding the rental of the Vehicle and supersedes all prior verbal or written arrangements on this subject.

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

14.3 No Assignment by Renter. Renter may not assign or transfer this Agreement or sub-rent the Vehicle to any third party without Owner’s prior written consent.

14.4 Notices. Formal notices under this Agreement shall be sent to the contact details listed at the beginning of this Agreement or to any updated contact details provided in writing.

14.5 Severability. If any provision of this Agreement is found invalid or unenforceable, the remaining provisions shall remain in full force and effect.

15. Signatures

By signing below, the Parties acknowledge that they have read, understood, and agree to be bound by the terms of this Vehicle Rental Agreement.

Owner / Rental Company

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

Renter

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