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A Vehicle Lease Agreement is a document used to reflect a contract made between a vehicle owner, known as the Lessor, and someone who pays the owner to possess and use the vehicle for a predetermined period of time, known as the Lessee. A Vehicle Lease Agreement is most commonly used with new and pre-owned cars, trucks, and motorcycles. However, the agreement may also be used with any other motor vehicle that has a Vehicle Identification Number (VIN) and license plate. Using a Vehicle Lease Agreement protects both parties from any misunderstandings or miscommunications that may arise during the life of the lease by providing written documentation of the lease terms.
How to use this document
This document contains all of the information necessary to create a thorough and complete vehicle lease. The document contains pertinent identifying details, such as the Parties' respective addresses and contact information. It also includes the most important characteristics of the agreement between the Parties, such as a full description of the vehicle, any fees the Lessee will be required to pay upon signing the lease (e.g. down payment, security deposit, registration fees, etc), retail value (and, if applicable, negotiated value) of the leased vehicle, Lessor's interest rate that will be charged, and the projected value of the vehicle at the end of the lease. Finally, the agreement outlines the payment schedule and amount the Lessee will be required to pay to adhere to the agreement, as well as any possible late fees if payments are not made on schedule.
After inputting the required information, the Agreement is printed out and signed by both Parties, and then kept on file by both Parties for the duration of the Agreement as well as for a reasonable period of time thereafter.
Applicable law
Vehicle Lease Agreements, like other Lease and general purpose Sale Agreements, in the United States are generally subject to both federal law and specific state laws, which cover general contract principles like formation and mutual understanding. Federal law dictates that a Vehicle Lease Agreement must include a disclosure by the Lessor of the vehicle's odometer reading at the time of the leasing. Further, state laws cover commercial transactions and business. For example, in Louisiana, Maryland, Nebraska, Wyoming, and West Virginia, a Vehicle Lease Agreement must be certified by a notary.
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