VIEWS: 331 PAGES: 11 CATEGORY: Other Personal Legal Documents and Forms POSTED ON: 1/21/2012
This is an agreement between two parties for the lease of a vehicle. This agreement provides for the vehicle’s specifications, term of the lease, deposit amount, lease payments, termination, warranties, and insurance. The agreement contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties. This agreement can be used by individuals or entities that want to enter into a vehicle lease.
This is an agreement between two parties for the lease of a vehicle. This agreement provides for the vehicle’s specifications, term of the lease, deposit amount, lease payments, termination, warranties, and insurance. The agreement contains both standard clauses and opportunities for the use of optional terms and conditions making it fully customizable to fit the needs of the contracting parties. This agreement can be used by individuals or entities that want to enter into a vehicle lease. VEHICLE LEASE 1. Lessee Name and Address: _______ [Instruction: Insert name of party leasing vehicle.] (hereinafter referred to as the “Lessee”). 2. Lessor Name and Address: _____ [Instruction: Insert name of party who is leasing to Lessee.] (hereinafter referred to as the “Lessor”). 3. Creditor in this lease is: _____ [Instruction: Insert name of party providing credit.] (hereinafter referred to as the “Creditor”). 4. The vehicle described in this lease is as follows: _____ [Instruction: Insert description of the vehicle being leased, including make, model, color, mileage at delivery, vehicle usage and VIN number.] (hereinafter referred to as the “Vehicle”). 5. This agreement, entered into this __ day of _____, 20__ [Instruction: Insert lease date.] for the lease of the Vehicle shall hereinafter be referred to as the Lease. WHEREAS, Lessor is the fee owner of the Vehicle; and WHEREAS, Lessor desires to lease the Vehicle to Lessee upon the terms and conditions as contained herein; and WHEREAS, Lessee desires to lease the Vehicle from Lessor on the terms and conditions as contained herein; NOW, THEREFORE, for and in consideration of the covenants and obligations contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: By signing, Lessee (including any co-Lessee) agrees to lease this vehicle according to the terms of this lease. 1. The amount due at lease signing or delivery is as follows: _____ [Instruction: Insert itemized amount due. Parties may wish to further break this down into categories such as capitalized cost reduction, first monthly payment, refundable security deposit, title fees, registration fees, etc.]. This amount shall be payable as follows: _____ [Instruction: Insert itemized manner of payment, including applicable amounts payable in net-trade in allowances, rebate and/or non-cash credits, cash, etc.]. a. Optional language: Lessee hereby acknowledges and agrees that any security deposit paid hereunder may be used by Creditor to pay any and all amounts owed by Lessee hereunder which Lessee fails to pay. Further, Lessee hereby acknowledges and agrees that it shall not receive any interest on any such security deposit. Upon the termination of this Lease according to its terms, and upon © Copyright 2012 Docstoc Inc. 2 Lessee’s payment of all amounts due hereunder and performance of all obligations set forth herein, such security deposit shall be refunded to Lessee within thirty (30) days of the aforementioned lease termination. 2. Lessee’s first monthly payment of $___ United States Dollars is due on _____. Subsequent monthly payments of $___ United States Dollars are due on the __ day of each month for a total of __ months. Lessee’s total monthly payments are: $ ____ United States Dollars. [Instruction Insert applicable term information.] a. The parties agree the monthly payment was calculated based on the following items, which are set forth more particularly on Schedule A: gross capitalized cost; capitalized cost reduction; adjusted capitalized cost; residual value; depreciation and amortized amounts; rent charges; number of lease payments; monthly sales/use tax, and other amounts as set forth in greater detail. b. Gross capitalized cost shall include the following amounts: agreed upon Vehicle value, sales/use taxers and other applicable taxes, title fees, license and registration fees, extended warranty and service contract, lessor services, acquisition fee, documentation fee, life insurance premium and disability insurance premiums. c. The estimated total amount to be paid by Lessee for official and license fees, registration, title and taxes over the Lease term, whether included within Lessee’s monthly payments or otherwise are: $_____. [Instruction: Insert estimated official fees.] The actual total of such fees and taxes may be higher or lower than this estimated total depending on the tax rates in effect or the value of the leased property at the time any such fee or tax is assessed. 3. Any scheduled payment which is not received by the ___ [Instruction: Insert date by which payment must be received.] day of the month in which it is due shall be deemed late. Lessee shall pay a late charge for each such payment of ____. [Instruction: Insert late payment charge, whether a flat fee or a percentage of the total payment and indicate such.] 4. In the event Lessee does not purchase the Vehicle in this manner set forth in this Lease, Lessee shall pay a disposition fee of $ _____ [Instruction Insert applicable term information.] United States Dollars at the termination of this Lease. 5. This Lease shall terminate upon (a) the end of the term as defined herein and (b) the return of the Vehicle as set forth herein to Lessor, and (c) the payment by Lessee of all amounts owed pursuant to this Lease. Lessee hereby acknowledges and agrees that Creditor may cancel this Lease in the event of Lessee’s default. © Copyright 2012 Docstoc Inc. 3 6. Lessee hereby acknowledges and agrees that in the event Lessee terminates this Lease except as otherwise set forth herein, Lessee may be subject to early termination fees. 7. Lessee hereby acknowledges and agrees that Lessee may be charged for excessive wear and tear to the Vehicle based upon standards of normal use. Lessee acknowledges and agrees the following standards will be applicable for determining unreasonable or excess wear and tear to the Vehicle: _____ [Instruction: Insert wear and tear standards.]. Further, Lessee acknowledges and agrees it shall be responsible for repairs of all damages which are not a result of normal wear and tear. Repairs which are hereby deemed non- normal wear and tear damage include but are not limited to tires which are unmatched, unsafe or have less than 1/8 inch of remaining tread in any place; electrical or mechanical defects or malfunctions; gloss, paint, body panels, trim and grill work that are broken, mismatched, chipped, scratched, pitted, cracked or if applicable dented or rusted; interior rips, stains, burns or worn areas; and all damage which would be covered by collision or comprehensive insurance whether or not such insurance is actually in force. These repairs shall also include but are not limited to those necessary to return the Vehicle to any pre-accident condition, and any such repairs must be made with original manufacturer parts or those of equal quality. If such repairs are not made prior to returning the Vehicle at the schedule Lease termination, Lessee will pay the estimated cost of such repairs, even if the repairs are not made prior to any subsequent sale of the Vehicle. 8. Lessee hereby acknowledges and agrees that if it does not purchase the Vehicle upon Lease termination as set forth herein, Lessee shall return the Vehicle to Lessor unless Creditor specifies another location. If Lessee fails to return the Vehicle, Lessee must continue to pay the monthly payments PLUS other damage to creditor, including any amounts payable pursuant to any default provisions set forth herein. Payment of any such amounts shall not permit Lessee to continue to retain the Vehicle. 9. At the end of the Lease, unless Lessee purchases the Vehicle, Lessee shall pay to Lessor ___ cents per mile in excess of ____ miles shown on the odometer. [Instruction Insert applicable term information.] Optional Language: At the scheduled Lease termination, Lessee will receive a credit of ___ cents per unused mile for the number of unused miles between ___ and ___ miles, less any amounts Lessee owes pursuant to this Lease. Lessee will not receive any credit if the Vehicle is destroyed, if the Lease is subject to early termination, if any purchase option is exercised, if Lessee is in default or if the credit is less than $1.00. © Copyright 2012 Docstoc Inc. 4 10. Lessee, if not in default, shall have the option, upon the termination of this Lease, to purchase the Vehicle from Lessor in cash for the purchase price of $____ [Instruction: Insert price.] United States Dollars, which price shall not include any applicable official fees and/or taxes which may be due. [Optional: The parties may revise this in the event Lessee shall not be permitted to purchase the Vehicle upon Lease termination.] 11. Lessee shall be responsible to obtain and maintain insurance on the Vehicle during the term of this Lease, in an amount and manner acceptable to Creditor, and sufficient to protect Lessee and Creditor. LESSEE HEREBY ACKNOWLEDGES AND AGREES THAT NEITHER LESSOR NOR CREDITOR IS PROVIDING VEHICLE INSURANCE OR LIABILITY INSURANCE PURSUANT TO THIS LEASE. Such insurance shall include but not be limited to (a) comprehensive fire and theft insurance with a maximum deductible of $1,000, and (b) automobile liability insurance with minimum limits for bodily injury or death of $25,000 for any one person and $50,000 for any one accident, and $10,000 for property damage, unless the jurisdiction in which the Vehicle is registered or titled establishes or charges greater minimum automobile liability insurance limits than those previously listed. In any such instance, Lessee must insure the Vehicle and the Creditor at the higher minimum limits established by such jurisdiction. Lessee will list the loss payee and additional insured as requested by Lessor, and must provide Creditor with proof of such insurance. Lessee authorized Creditor, on its behalf, to receive and endorse checks or drafts, and settle or release any and all claims under the insurance related to Creditor’s ownership of the Vehicle. Lessee also assigns to Creditor any other insurance proceeds related to this Lease or Creditor’s interest in the Vehicle. If Lessee or Creditor obtains a refund for any amounts paid to third parties for insurance, service contracts or any other amounts paid to a third party included in the gross capitalized cost of this Lease, Lessee must pay to Creditor the entire amount of the refund and Lessee authorizes the Creditor to subtract the refund from the amount owed by Lessee under this Lease. If Lessee titles or registers the Vehicle in, or changes the garage location to a jurisdiction where Creditor has established minimum automobile liability limits greater than those listed above for bodily injury or death and property damage insurance, Lessee must insure the Vehicle and the Creditor at the higher minimum limits established by Creditor. Optional language: Lessee is hereby advised life insurance and disability insurance coverage is not required to enter into this Lease and will not be provided. © Copyright 2012 Docstoc Inc. 5 12. Lessee shall not use or permit others to use the Vehicle in violation of any applicable law or contrary to the provisions of any insurance policy covering the Vehicle or outside the jurisdiction where the Vehicle was first titled or registered by Lessee for more than thirty (30) days without Creditor’s written consent or as a private or public carrier or in any manner which would invalidate any applicable warranty. Lessee will keep the Vehicle and Lease free and clear of all liens and/or encumbrances. Lessee shall not assign or sublease the Vehicle or this Lease without Creditor’s prior written consent. Upon execution of this Lease, Lessor will assign same to Creditor, which creditor or its assignee will administer this Lease. Lessee must then pay all amounts due under this Lease to such Creditor. In the event such rights and obligations to administer are assigned to any assignee, such assignee shall have the power to act as Creditor’s behalf to administer, enforce and defend this Lease. If Lessor has agreed to repair or maintain the Vehicle, obtain any insurance or perform any other services, Lessee will look only to the Lessor for these services. 13. Lessee shall be responsible for proper Vehicle maintenance. Lessee must maintain service and maintain the Vehicle at its sole cost and expense, except to the extent any such service and maintenance is covered by applicable manufacturer warranty. Any such service and maintenance must use parts and materials meeting or exceeding manufacturer specifications, including those noted in the owner’s manual and maintenance schedule. Lessee shall be responsible for documenting any and all such maintenance performed and necessary repairs made to the Vehicle. Lessee shall also be responsible at its sole cost and expense for the operating costs of the Vehicle, such as gas and oil. Lessee is hereby advised manufacturer may invalidate warranty coverage on parts affected by a failure to maintain the Vehicle as required pursuant to manufacturer specifications. 14. The Vehicle is covered by the following warranty: _____ [Instruction: Insert warranty to be provided. If lengthy, same may be attached as an additional schedule.] If the Vehicle is of a type normally used for personal use and the Lessor, or the Vehicle’s manufacturer, extends written warranty or service contract covering the Vehicle within ninety (90) days from the date of the execution of this Lease, Lessee shall receive implied warranties of merchantability and fitness for a particular purpose covering the Vehicle. Otherwise, Lessee understands and agrees that no such implied warranties shall be applicable except as otherwise required pursuant to applicable law. 15. Lessee shall promptly pay all fees, charges and taxes relating to the Lease or Vehicle (except for any other party to this Lease’s income taxes). Lessee will pay such amounts even in the event they are assessed upon or after the termination of this Lease. © Copyright 2012 Docstoc Inc. 6 16. During the term of this Lease, the Vehicle will remain titled in the name of Creditor. Lessee will register the Vehicle as directed by Creditor and will pay any and all applicable licensing, title and registration costs and fees, at Lessee’s sole cost and expense. 17. By executing this Lease, Lessee expressly authorizes Creditor to obtain consumer credit reports from consumer reporting agencies for any reason and at any time during the term of this Lease in connection with this Lease. Lessee hereby waives any further notice, agreement or acknowledgement of any such credit report being obtained. 18. Lessee will indemnify and hold harmless Lessor, Creditor and their assigns from any loss or damage to the Vehicle and its contents and from all claims, losses, injuries, expenses and costs related to the use, maintenance, or condition of the Vehicle. Lessee will promptly pay all fines and tickets imposed upon the Vehicle or its driver. If Lessee does not pay as set forth herein, Lessee will reimburse Creditor and pay a $20.00 administration fee, unless such fee is prohibited by applicable law, for every such fine, ticket or penalty that must be paid on Lessee’s behalf. 19. In the event the Vehicle is stolen or destroyed, Lessee will apply to creditor (a) the unpaid adjusted capitalized cost plus (b) all other amounts then due under this Lease, minus (c) any insurance proceeds received by Creditor. Notwithstanding the fact that this Vehicle is insured, Lessee shall remain responsible for all scheduled amounts due pursuant to this Lease until Creditor receives the amount noted above. 20. Lessee will be in default if (a) Lessee fails to make any payment when due or (b) a bankruptcy petition is filed by or for Lessee, or (c) any governmental authority seizes the Vehicle and does not promptly or unconditionally release the Vehicle to Lessee or (d) Lessee has provided false or misleading material information when applying for this Lease, or (e) Lessee fails to maintain any other agreement in this Lease. If Lessee is in default, Creditor may cancel this Lease, take back the Vehicle and sell it at a public or private sale. Lessee also gives Creditor the right to go on Lessee’s property to peacefully retake the Vehicle. Even if Creditor retakes the Vehicle, Lessee must still pay at once (a) the difference, if any, between the unpaid adjusted capitalized cost and the value which could be realized at the sale of the Vehicle plus (b) all other amounts then due under this Lease. The value which could be realized at the sale of the Vehicle at Lessee’s option will be (a) the net amount received by Creditor upon the Vehicle sale at wholesale, or (b) as determined by a professional appraisal obtained by Lessee at its sole cost and expense within ten (10) days from default, from an independent third party agreeable to Creditor. Lessee must also pay all expenses, including reasonable attorney’s © Copyright 2012 Docstoc Inc. 7 fees, payable by Creditor to obtain, hold and sell the vehicle, collect amounts due and enforce Creditor’s rights pursuant to this Lease. Lessee authorizes Creditor to cancel Lessee’s insurance and apply any proceeds to any and/or all obligations pursuant to this Lease. 21. If Lessee is not in default, Lessee may terminate this lease early by returning the Vehicle to Lessor and paying the following: (a) an early termination fee of $200.00 plus (b) the difference, if any, between the unpaid adjusted capitalized cost and the Vehicle’s fair market value plus (c) all other amounts then due and owing under this Lease. Lessee will never pay more than the sum of the remaining unpaid lease payments, plus any excess wear and use and mileage charges, and all other amounts then due under this Lease. If Lessee is not in default, Lessee may purchase the Vehicle from Lessor at any time for the sum of the remaining payments, less any unearned rent charges, if any, plus the purchase option price and all other amounts then due under this lease. 22. Federal law requires Lessee to complete a statement of the Vehicle’s mileage upon the termination of this Lease. 23. This Lease sets forth all of the agreements between Lessor and Lessee for the Vehicle Lease. There is no other agreement, written or oral with respect to same. Any change to this Lease must be in writing and signed by Lessee and Creditor. 24. Lessee hereby acknowledges and agrees that Lessor and/or Creditor may reserve any legally permissible security interest in the Vehicle to secure performance of Lessee’s obligations pursuant to this Lease. 26. Except as otherwise provided by applicable law in the jurisdiction where Lessee resides, this Lease shall be subject to the laws of the jurisdiction of Lessor’s principal place of business, as set forth in this Lease. If any provision of this Lease or the application thereof shall, for any reason and to any extent, be invalid or unenforceable, neither the remainder of this Lease nor the application of the provision to other persons, entities or circumstances shall be affected thereby, but instead shall be enforced to the maximum extent permitted by law. 25. The covenants, obligations and conditions herein contained shall be binding on and inure to the benefit of the heirs, legal representatives, and assigns of the parties hereto. 26. The descriptive headings used herein are for convenience of reference only and they are not intended to have any effect whatsoever in determining the rights or obligations of the Lessee, Lessor, or Creditor. © Copyright 2012 Docstoc Inc. 8 27. The pronouns used herein shall include, where appropriate, either gender or both, singular and plural. 28. No indulgence, waiver, election or non-election by Creditor or Lessor under this Agreement shall affect Lessee's duties and liabilities hereunder. [Comment: Please note, this document DOES NOT contain a mandatory arbitration provision. If parties wish to add one, same may be included.] NOTICE: DO NOT EXECUTE THIS LEASE BEFORE YOU HAVE READ IT IN ITS ENTIREY OR IF IT HAS ANY BLANK SPACES TO BE FILLED IN. YOU DO HAVE A RIGHT TO RECEIVE A COMPLETED COPY OF THIS LEASE. BY EXECUTING BELOW, YOU HEREBY STATE YOU HAVE BEEN GIVEN A COMPLETED COPY AT THE TIME YOU EXECUTED THIS LEASE. YOU FURTHER ACKNOWLEDGE YOU HAVE RECEIVED NOTICE OF AN ASSIGNMENT OF THIS LEASE BY THE LESSOR TO CREDITOR. ______________ Lessee ______________ Lessor Lessor is hereby notified that Creditor has assigned to an intermediary its rights (but not its obligations) with respect to the purchase of this Vehicle and the sale of this Vehicle at Lease termination. ______________ Lessor ______________ Lessee © Copyright 2012 Docstoc Inc. 9 Schedule A © Copyright 2012 Docstoc Inc. 10
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