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VEHICLE LEASING AGREEMENT
THIS VEHICLE LEASING AGREEMENT (this "Lease") dated this 16th day of January, 2021
BETWEEN:
________________________ of _____________________________________(the "Lessee")
OF THE FIRST PART
- AND -
________________________ of _____________________________________(the "Lessor")
OF THE SECOND PART
IN CONSIDERATION of the mutual covenants and promises in this Lease and other valuable consideration, the sufficiency of which consideration the Parties hereby acknowledge, the Lessor leases the Vehicle described in this Lease to the Lessee, and the Lessee leases the Vehicle from the Lessor on the following terms:
The Lessee will ensure that the Lessor is named as registered owner, and as "Additional Insured" and loss payee in the insurance policy (the "Insurance Policy").
IN WITNESS WHEREOF the Parties have executed this Lease on this _______ day of _______________________.
_____________________________________________________(Lessor)
_____________________________________________________(Lessee)
NOTICE TO THE LESSEE:(1) This is a lease. You are not buying the motor vehicle previously described;(2) Do not sign this Lease before you read it or if it contains any blank spaces to be filled in;(3) You are entitled to a completely filled in copy of this Lease when you sign it;(4) Warning -- unless a charge is included in this Lease for public liability or property damage insurance, payment for that coverage is not provided by this Lease.
Lessee Initials
Lessor Initials
Itemisation of Gross Capitalised Cost
(A) Value of the vehicle as equipped at the time of entering into the Lease ...
$1
(B) Values and descriptions of accessories and optional equipment the Lessor agrees to add to the vehicle after entering into the Lease ....................
none
(C) Premium to be paid for each policy of insurance .....................................
(D) Charge for each service contract ..............................................................
(E) Outstanding Lease balance or prior credit balance .................................
(F) Itemisation of any other good or service not included above ..................
(G) Total Gross Capitalised Cost .................................................................
$1.00
Monthly Payment Calculation
Gross capitalised cost. The agreed upon value of the vehicle ($1) and any items the Lessee pays over the Term (such as service contracts, insurance, any outstanding prior credit or Lease balance) .............................
Capitalised cost reduction. The amount of the trade in allowance and down payment made by the Lessee to reduce the gross capitalised cost ......
-
$__________
Adjusted capitalised cost. The amount used in calculating the periodic payments ........................................................................................................(This amount along with the additional early termination charges will be used in determining your early termination liability.)
=
Residual Value. The value of the vehicle at the end of the Lease used in calculating the base monthly payments ........................................................
Depreciation and any amortised amounts. The amount charged for the vehicle's decline in value through normal use and other items paid over the Term ..............................................................................................................
Interest charge. The interest charged in addition to the depreciation and any amortised amounts ..................................................................................
+
$0.00
Total of base monthly payments. The depreciation and any amortised amounts plus the interest charge ..................................................................
Lease payments. The number of payments in your Lease ..........................
/ 1
Base monthly payment...............................................................................
Monthly GST..........................................................................................
_____
Total Monthly Payment...............................................................................
A Vehicle Leasing Agreement is also known as a:
A Vehicle Leasing Agreement is a contract made between a vehicle owner and an individual or company who leases or hires the vehicle for a predetermined amount of time.
Individuals and companies may use a Vehicle Leasing Agreement to lease new and previously-owned cars, trucks, and motorcycles. However, you can use the agreement with any motor vehicle that has a Vehicle Identification Number (VIN), which may include motorized scooters and recreational vehicles.
The vehicle owner is known as the lessor and the person leasing the vehicle is known as the lessee. If two people co-own a vehicle, you can include multiple lessors within your Vehicle Leasing Agreement. If multiple people lease a vehicle together, such as spouses, you can include multiple lessees.
Prepare a Vehicle Leasing Agreement by compiling the necessary information:
LawDepot’s template asks you a few simple questions, allowing you to customise and create your document according to your jurisdiction.
Yes, a Vehicle Leasing Agreement is a necessary document when an individual leases a vehicle from a company. Generally, a dealership that leases vehicles will have its own documentation that protects the company and its lessees. However, if you’re negotiating a vehicle lease with a company that doesn’t ask you to sign a contract, you can suggest using LawDepot’s Vehicle Leasing Agreement template as a way to protect all parties involved.
You are responsible for obtaining the necessary insurance coverage and maintaining the vehicle. If you return the leased vehicle with excessive interior wear, dents or scratches, or any significant mechanical damage, the lessor may choose to charge you for the repairs.
Some lessors may limit the number of kilometres the lessee can use. In this case, you’re responsible for keeping track of your mileage. If you exceed this limit, the lessor may charge a mileage fee at the end of the lease. Alternatively, a lessor may offer a vehicle lease with unlimited mileage.
Use a Vehicle Leasing Agreement to protect the interests of both the lessor and the lessee. Documenting the lease terms helps prevent misunderstandings between the two parties and provides proof in the event of a legal dispute.
If you are negotiating lease terms with another individual, you likely won’t have access to a typical dealership lease form. Instead, use a Vehicle Leasing Agreement. For example, you could use this document when loaning your van or truck to a friend or family member for an extended period of time.
Including an option to purchase in a Vehicle Leasing Agreement gives the lessee the choice to purchase the vehicle at any time during the lease or at the end of the lease. Generally, the purchase price is the residual value of the vehicle, unless the lessee negotiates a lower price. The residual value is the estimated value of the vehicle at the end of the lease term.
Your ability to end your lease early depends on the contract and the other party’s willingness to accommodate your request. If the other party consents to early termination of the agreement without penalty, you’ll be able to end your lease without any problems.
However, the lessee must pay if a Vehicle Leasing Agreement states that the lessee is responsible for the difference between the residual value and the realised value when terminating early. The realised value is the actual sale price that the lessor can sell the leased vehicle for after a lessee terminates the lease early.
At the end of the vehicle lease term, the lessee returns the vehicle to the lessor. If the lessee paid a security deposit at the beginning of the lease, the lessor will inspect the vehicle and determine if the lessee will receive their deposit back. Besides properly maintaining your leased vehicle, you can better ensure the return of your security deposit by removing all your personal items from the vehicle, vacuuming out the interior, and washing the exterior.
Note: Your initial answers are saved automatically when you preview your document.This screen can be used to save additional copies of your answers.