Car Rental Loan Agreement
Car Rental Loan Agreement
This Car Rental Loan Agreement ("Agreement") is made effective as of [Date], between:
Lender:
[Your Company Name]
Address: [Your Company Address]
Hereinafter referred to as the "Lender," which term shall include its successors and assigns.
Client:
[Your Client Name]
Address: [Your Client Address]
Hereinafter referred to as the "Client," which term shall include its successors and assigns.
WHEREAS, the Lender operates a car rental business and owns certain vehicles available for lease;
WHEREAS, the Client desires to rent a vehicle from the Lender for personal use;
WHEREAS, the parties wish to formalize their agreement regarding the terms and conditions under which the vehicle will be rented and the responsibilities of each party during the rental period;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree as follows:
1. Loan Specifics
1.1 Vehicle Loaned:
The vehicle subject to this Car Rental Loan Agreement is a [Vehicle Make, Model, Year], with license plate number [License Plate Number].
1.2 Rental Duration:
The rental period shall commence on [Start Date] and terminate on [End Date], unless extended by mutual agreement in writing between the Lender and the Client.
1.3 Rental Fees:
The Client agrees to pay rental fees at a rate of $50 per day for the use of the vehicle, payable in advance or as otherwise agreed upon by the parties.
1.4 Additional Costs:
In addition to the rental fees, the Client shall be responsible for the following:
a. Insurance Premiums: The Client agrees to maintain insurance coverage on the rented vehicle throughout the rental period, with proof of coverage provided to the Lender upon request.
b. Mileage Charges: A mileage charge of $0.25 per mile will apply for mileage exceeding [mileage limit], unless otherwise agreed upon in writing.
1.5 Advance/Deposit:
The Client shall provide an advance deposit of [Deposit Amount] to secure the rental, which shall be returned to the Client upon satisfactory return of the vehicle and settlement of all outstanding charges.
2. Responsibilities of the Parties
2.1 Lender's Responsibilities:
The Lender agrees to:
a. Provide a vehicle in safe operating condition, serviced and maintained according to manufacturer specifications and legal requirements.
b. Ensure all necessary documentation, including registration and insurance, is current and valid for the duration of the rental period.
2.2 Client's Responsibilities:
The Client agrees to:
a. Maintain the rented vehicle in good condition, ensuring regular maintenance checks and addressing any mechanical issues promptly.
b. Adhere strictly to all traffic laws and regulations governing the use and operation of the vehicle during the rental period.
c. Promptly notify the Lender of any accidents, damage, or mechanical issues encountered during the rental period, and cooperate fully in any subsequent investigations or insurance claims.
d. Return the vehicle to the Lender at the end of the rental period in the same condition, excluding normal wear and tear attributable to proper use.
3. Repayment Terms
3.1 Repayment Schedule:
The Client shall repay the advance deposit and any outstanding amounts according to the following terms:
a. Rental Fees: The Client agrees to pay rental fees of $50 per day for the duration of the rental period, payable in advance or as otherwise agreed upon by the parties.
b. Additional Costs: The Client shall reimburse the Lender for insurance premiums and mileage charges as incurred during the rental period, payable upon receipt of an invoice or as otherwise specified in this Agreement.
3.2 Final Settlement:
Final settlement of any outstanding amounts, including but not limited to rental fees, additional costs such as insurance premiums and mileage charges, and charges for damages beyond normal wear and tear, shall occur promptly upon the return of the vehicle to the Lender. The Lender reserves the right to deduct any unpaid fees or charges from the advance deposit provided by the Client. Any remaining balance shall be refunded to the Client within 14 days of the vehicle's return, subject to deductions for outstanding fees or damages as specified in this Agreement.
3.3 Late Payment:
In the event that any payment under this Agreement is not made when due, the Client shall be liable for late payment charges and interest at the rate of 1.5% per month, compounded monthly, on the overdue amount from the due date until payment is received in full. Such interest and charges shall accrue daily and be payable on demand by the Lender.
3.4 Currency and Method of Payment:
All payments under this Agreement shall be made in US Dollars (USD) and by bank transfer to the account specified by the Lender, unless otherwise agreed upon in writing by the parties. Alternative methods of payment may include credit card payments or other mutually agreed upon methods, subject to applicable processing fees as specified by the Lender.
4. Consequences of Default or Damage
4.1 Default:
In the event of default by the Client, including but not limited to failure to pay rental fees or adhere to the terms of this Agreement, the Client shall be liable for the full rental fees for the agreed duration as specified in Section 1.3. The Lender reserves the right to pursue legal action or other remedies available under law to recover any outstanding amounts owed.
4.2 Damage:
If the rented vehicle sustains damage during the rental period, excluding normal wear and tear, the Client shall be responsible for covering the repair costs. The Client's liability shall be limited to repair costs not exceeding $500. Any repair costs exceeding this amount shall be borne by the Client, and the Client agrees to reimburse the Lender promptly upon receipt of an invoice or repair estimate. The Lender may withhold all or part of the advance deposit provided by the Client to cover such costs, with any remaining balance refunded to the Client as specified in Section 3.2.
5. Legal Clauses
5.1 Governing Law:
This Agreement shall be governed by and construed in accordance with the laws of the State of [State Name], without regard to its conflict of laws principles.
5.2 Dispute Resolution:
Any disputes arising out of or relating to this Agreement shall be resolved exclusively through mediation or arbitration in [City, State]. The mediation or arbitration shall be conducted in accordance with the rules and procedures of [Mediation/Arbitration Organization].
5.3 Late Payment Fees:
In the event that any payment under this Agreement is not made when due, the Client shall be liable for late payment fees in the amount of 1.5% per month, compounded monthly, from the due date until payment is received in full. Such fees shall accrue daily and be payable on demand by the Lender.
5.4 Prepayment Conditions:
Any prepayment of rental fees or advance deposit shall be subject to the following conditions:
a. Prepayments are non-refundable unless otherwise agreed upon in writing by both parties.
b. A 10% administrative fee will apply to any prepayment refunded due to cancellation or modification of the rental agreement.
c. Notice of cancellation or modification of prepayments must be provided to the Lender at least 7 days in advance of the scheduled rental period to qualify for a refund, minus applicable fees.
These conditions regarding prepayment are subject to mutual agreement and shall be documented as an addendum or modification to this Agreement, signed by both parties.
IN WITNESS WHEREOF, the parties hereto have executed this Car Rental Loan Agreement as of the date first written above:
[Your Name]
[Your Job Title]
[Your Company Name]
Date: [Date]
[Your Client Name]
[Job Title]
Date: [Date]
