Car Rental Installment Payment Contract
Car Rental Installment Payment Contract
This Car Rental Installment Payment Contract ("Contract") is made and entered into as of the [Date], by and between [Your Company Name], having its principal place of business at [Your Company Address] ("Lessor"), and [Lessee Name], residing at [Lessee Address] ("Lessee"). The Lessor and Lessee may be individually referred to as a "Party" or collectively as the "Parties."
The Lessor agrees to lease the Vehicle described herein to the Lessee, and the Lessee agrees to lease the Vehicle from the Lessor, on the terms and conditions set forth in this Contract.
I. Vehicle Details
A. Description of the Vehicle: The Vehicle subject to this Contract is a [Model], and an initial mileage of 12,000 miles.
B. Condition of the Vehicle: At the commencement of this lease, the Vehicle is in good condition, free from any significant damage except for minor wear and tear consistent with its age and mileage. A detailed Vehicle Inspection Report is attached as Appendix A.
C. Authorized Drivers: The Vehicle shall only be driven by the Lessee or other drivers authorized by the Lessor in writing. Any unauthorized drivers will be considered a breach of this Contract.
D. Use of the Vehicle: The Vehicle is to be used solely for personal use and must not be used for any illegal activities, commercial purposes, or outside the state of State without prior written consent from the Lessor.
II. Lease Term
A. Start Date: The lease term shall commence on [Date].
B. End Date: The lease term shall terminate on [Date], unless extended or terminated earlier in accordance with the terms of this Contract.
C. Extension Options: The Lessee may request an extension of the lease term by providing written notice to the Lessor at least 30 days before the end of the initial lease term. Any extension is subject to the Lessor’s approval and may be subject to additional terms and conditions.
D. Early Termination: The Lessee may terminate this Contract early by providing 15 days' written notice to the Lessor. An early termination fee of $500 will apply, in addition to any unpaid installments.
III. Payment Terms
A. Total Rental Amount: The total rental amount for the lease term is $12,000.
B. Installment Payment Schedule: The Lessee agrees to pay the total rental amount in 12 equal monthly installments of $1,000 each. Payments are due on the 5th day of each month, starting from [Date].
C. Payment Methods: Payments shall be made via electronic funds transfer to the Lessor’s designated bank account, credit card, or any other method agreed upon by both Parties in writing.
D. Late Payment Penalties: If any installment payment is not received within 5 days of its due date, a late fee of $50 will be applied. If the payment is not received within 15 days, the Lessor reserves the right to terminate the Contract and repossess the Vehicle.
IV. Security Deposit
A. Amount: The Lessee shall pay a security deposit of $1,000 to the Lessor at the time of signing this Contract.
B. Conditions for Refund: The security deposit will be refunded to the Lessee within 30 days after the end of the lease term, provided the Vehicle is returned in the same condition as at the start of the lease, excluding normal wear and tear, and all obligations under this Contract have been met.
C. Deductions: The Lessor reserves the right to deduct from the security deposit any amounts due for damages to the Vehicle, unpaid rental fees, or other charges incurred by the Lessee under this Contract.
D. Notification of Deductions: If any deductions are made from the security deposit, the Lessor will provide the Lessee with an itemized statement detailing the reasons for the deductions and the amounts.
V. Use of the Vehicle
A. Permitted Use: The Vehicle is to be used solely for personal use by the Lessee and authorized drivers. It must not be used for any commercial purposes, including but not limited to ridesharing services, delivery services, or any other business activities.
B. Prohibited Uses: The Vehicle must not be used for any illegal activities, towing, racing, or off-road driving. Violation of this clause will result in immediate termination of the Contract and forfeiture of the security deposit.
C. Maintenance Responsibilities: The Lessee is responsible for maintaining the Vehicle in good working condition, including regular oil changes, tire rotations, and other routine maintenance as recommended by the manufacturer. Any repairs or maintenance required due to the Lessee’s negligence will be the responsibility of the Lessee.
D. Mileage Limitations: The Lessee is permitted to drive the Vehicle up to 15,000 miles per year. Exceeding this mileage will incur an additional fee of $0.20 per mile over the limit, payable at the end of the lease term.
VI. Insurance
A. Insurance Requirements: The Lessee is required to maintain comprehensive and collision insurance on the Vehicle with coverage limits of at least $50,000 per incident and $100,000 in aggregate. Proof of insurance must be provided to the Lessor before taking possession of the Vehicle.
B. Proof of Insurance: The Lessee must provide the Lessor with a copy of the insurance policy and proof of premium payment at the start of the lease term and upon each renewal of the policy.
C. Lessor's Right to Obtain Insurance: If the Lessee fails to maintain the required insurance, the Lessor reserves the right to obtain insurance coverage on behalf of the Lessee and add the cost of the premium to the Lessee's monthly installment payments.
D. Notification of Claims: The Lessee must notify the Lessor immediately of any accidents, damage, or claims related to the Vehicle. Failure to do so may result in the Lessee being held fully responsible for all associated costs.
VII. Liability and Indemnity
A. Lessee’s Liability: The Lessee is liable for any damage to the Vehicle, loss of the Vehicle, or any injury or damage caused by the Vehicle during the lease term. The Lessee agrees to reimburse the Lessor for any expenses incurred as a result of such damage or loss.
B. Indemnification: The Lessee agrees to indemnify and hold harmless the Lessor from any claims, liabilities, damages, or expenses (including reasonable attorney’s fees) arising out of or related to the Lessee’s use or possession of the Vehicle.
C. Liability for Traffic Violations: The Lessee is responsible for any traffic violations, parking tickets, tolls, or fines incurred during the lease term. The Lessee agrees to pay such fines or fees promptly and to indemnify the Lessor against any associated costs.
D. Hold Harmless: The Lessee agrees to hold the Lessor harmless from any and all losses, damages, injuries, claims, demands, and expenses arising out of the use or operation of the Vehicle.
VIII. Termination
A. Termination by Lessor: The Lessor may terminate this Contract immediately if the Lessee fails to make any payment when due, breaches any terms of this Contract, or engages in prohibited uses of the Vehicle. In such cases, the Lessee must return the Vehicle within 48 hours.
B. Termination by Lessee: The Lessee may terminate this Contract by providing 15 days’ written notice to the Lessor. The Lessee will be responsible for an early termination fee of $500 and any outstanding payments.
C. Consequences of Early Termination: Upon early termination by either Party, the Lessee must return the Vehicle to the Lessor in the condition specified in Section IX. The Lessee will be liable for any damages, unpaid fees, and costs incurred by the Lessor due to the early termination.
D. Return of Security Deposit: If the Contract is terminated early, the security deposit will be refunded within 30 days after the Vehicle is returned and all amounts due have been settled, less any deductions for damages or unpaid fees.
IX. Return of the Vehicle
A. Condition Upon Return: The Vehicle must be returned in the same condition as when it was leased, excluding normal wear and tear. The Lessee is responsible for any damage, excessive wear, or missing parts.
B. Inspection Process: Upon return, the Vehicle will be inspected by the Lessor within 5 days. The Lessee may choose to be present during the inspection. Any damages or excessive wear will be documented and charged to the Lessee.
C. Charges for Damages: If the Vehicle is returned with any damage or excessive wear, the Lessor will provide the Lessee with an itemized list of charges. The Lessee agrees to pay these charges within 15 days of receiving the list.
D. Late Return: If the Vehicle is not returned by the end of the lease term, the Lessee will be charged a daily rental fee of $50 until the Vehicle is returned. This fee will be deducted from the security deposit or billed directly to the Lessee.
X. Dispute Resolution
A. Governing Law: This Contract shall be governed by and construed in accordance with the laws of the State of [State].
B. Arbitration: Any disputes arising out of or related to this Contract shall be resolved through binding arbitration in the [City, State], in accordance with the rules of the American Arbitration Association. Each Party shall bear its own costs and expenses related to the arbitration.
C. Mediation: Before proceeding to arbitration, the Parties agree to attempt to resolve any disputes through mediation in the [City, State]. The cost of mediation shall be shared equally by the Parties.
D. Venue: In the event of any legal action arising from this Contract, the Parties agree that the venue shall be in the state and federal courts located in [City, State].
XI. Miscellaneous Provisions
A. Entire Agreement: This Contract constitutes the entire agreement between the Parties and supersedes all prior negotiations, understandings, and agreements, whether written or oral.
B. Amendments: Any amendments to this Contract must be in writing and signed by both Parties. No oral modifications will be accepted.
C. Severability: If any provision of this Contract is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.
D. Notices: Any notices required under this Contract shall be in writing and delivered personally, sent by certified mail, return receipt requested, or sent by recognized overnight courier to the addresses specified in the Preamble.
Signatures
Lessee
[Name]
[Title]
[Date]
Lessor
[Name]
[Title]
[Date]
