Automobile Lease Agreement is a legal instrument signed by an automobile owner or a vehicle leasing company and a lessee. Such type of contractual arrangement is beneficial for both parties due to reasons like
- The owner is well compensated for an unused automobile.
- The lessee can avoid expenses for buying a new automobile.
However, certain facts require due consideration prior to entering into such contract.
- Please ensure to abide by the odometer reading regulations. Excessive mileage will result into an additional payment.
- The form must contain an accurate description of the motor vehicle leased using this contract.
- Both parties must sign this form before a notary public and acquire notary acknowledgement for execution and legal standing of the contract.
In addition, the lease term set out in the lease is binding on both parties. The lessee must return the automobile upon the lease termination and pay dues. However, here are a few options to extend/terminate the lease.
- Return the car after settling dues. Such return may attract a disposal fee in case it is stated on the contract.
- The lessee has an option to buy the leased car from the owner.
- Both parties have an option to extend the lease with the mutual consideration.
- Re-leasing the automobile is one more option available for both parties.
- The lessee has an option to trade-in and a new lease.
- The lessee has an option to transfer the lease with the due permission of the car owner.
Steps To Prepare Automobile Lease Agreement
Inputs from a car owner or the leasing company and the lessee are necessary. Please provide the following information in the requested fields and obtain a notary attestation of the signatures on the contract from a notary public of your state.
- Date of execution of the lease agreement
- Name of the car owner or the leasing company
- Name of the lessee
- Make and color of the automobile
- Model name/number of the vehicle
- Year of manufacturing of the vehicle
- VIN or Vehicle Identification Number
- Odometer reading
- Lease commencement date
- Date of lease expiry
- Monthly rent amount payable in words and figure
- Name of the state for jurisdiction
- Owner’s name, date, and signature
- Lessee’s name, date, and signature
- Notary Public seal, signature, and acknowledgement in the required format