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VEHICLE LEASING AGREEMENT
THIS VEHICLE LEASING AGREEMENT (this "Lease") dated this 28th day of January, 2023
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
Itemization of Gross Capitalized 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) Itemization of any other good or service not included above ..................
(G) Total Gross Capitalized Cost .................................................................
$1.00
Monthly Payment Calculation
Gross capitalized 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) .............................
Capitalized cost reduction. The amount of the trade in allowance and down payment made by the Lessee to reduce the gross capitalized cost ......
-
$__________
Adjusted capitalized 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 amortized 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 amortized amounts ..................................................................................
+
$0.00
Total of base monthly payments. The depreciation and any amortized amounts plus the interest charge ..................................................................
Lease payments. The number of payments in your Lease ..........................
/ 1
Base monthly payment...............................................................................
Monthly sales tax........................................................................................
_____
Total Monthly Payment...............................................................................
A Vehicle Leasing Agreement is also known as:
A Vehicle Leasing Agreement is a contract made between a vehicle owner (lessor) and someone who pays the owner to have possession of the vehicle for a fixed period (lessee). The lease payment consists of a vehicle depreciation fee, a finance fee similar to the interest charged on a car loan, and any relevant sales taxes. The lessee typically pays this fee monthly.
Using LawDeopt’s Vehicle Leasing Agreement template, a lessor can lease any motor vehicle with a Vehicle Identification Number (VIN). You can create an auto lease for:
Yes. LawDepot’s Vehicle Leasing Agreement template allows you to lease both new and used vehicles. If you’re leasing a used vehicle, our template asks you to disclose any information regarding the car's condition that may be vital to the lessee, including:
Our lease template asks you to provide information on the vehicle’s warranty. First, confirm if the warranty is still valid and, if it is, how long is left on the warranty. If you are providing a supplementary warranty, state whether the lessee will have to pay for it. A supplementary warranty is when the lessor or a third party will be providing a warranty for repairs that covers the period when the manufacturer's warranty expires until the end of the lease term.
Create a car lease agreement between two parties whenever you negotiate a vehicle lease without a dealership lease form. For example, you could use a Vehicle Leasing Agreement when loaning a car or truck to a friend or family member.
Using a Vehicle Leasing Agreement helps protect the interests of both the lessor and the lessee. By documenting the terms of the lease, both parties can avoid any misunderstanding or miscommunication.
When buying a vehicle, there’s an exchange of ownership between two parties. The vehicle’s ownership transfers from one party to another. This kind of transaction requires a Bill of Sale. The person selling the vehicle relinquishes all their rights to it.
Conversely, when a vehicle owner leases a vehicle, they remain its owner, meaning the lessee doesn’t have the right to modify the vehicle. Also, the lessor often expects the lessee to return the vehicle in the same condition. Essentially, the lessee rents the vehicle for a set amount of time. As a result, the lessor determines the portion of the vehicle’s total cost that the lessee pays.
The lessee is responsible for providing the necessary insurance coverage and must keep the vehicle maintained and in good repair. If the lessee returns the leased vehicle with excessive interior wear, large dents or scratches, or any major mechanical damage, the lessor may bill the lessee for the repairs.
Some vehicle leases place a limit on the number of kilometres the lessee can use. A common mileage allowance is around 19 000 kilometres per year over the term of the lease. If the lessee exceeds this limit, the lessor can charge a mileage fee at the end of the lease. Alternatively, a vehicle lease may offer unlimited mileage, which does not place a cap on the distance travelled.
At the end of the vehicle lease term, the lessee returns the vehicle to the lessor. If it’s an option, the lessee may agree to purchase the vehicle. If the lessee opts to purchase the vehicle, the lessor can apply their lease payments against the total purchase price.
A Vehicle Leasing Agreement also lists any penalties for ending the lease before the term is up. Early termination penalties can include paying the balance of the remaining lease payments, along with additional charges.
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