How to Create an Auto Lease Agreement
Making the decision to lease an automobile requires drafting an appropriate auto lease agreement. Although the laws regarding leasing vehicles vary slightly from one state to another, the general provisions necessary in an auto lease agreement are the same. A written agreement clarifies the obligations of both parties as to the lease of the automobile. Failure to include all basic elements of an auto lease may result in the entire agreement being unenforceable.
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Instructions
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Set forth the names of the parties to the lease at the start of the agreement. Indicate which party is the lessor and which party is the lessee. The lessor is the individual who owns the vehicle, the lessee the person who leases the auto.
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Identify specifically the vehicle subject to the car lease agreement. Include not only the make and model of the car, but also the vehicle identification number so that there is no confusion.
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List the length of time the auto lease agreement is to be in effect.
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Establish the specific starting date of the lease. Clearly note that the vehicle must be delivered by the lessor to the lessee on that date. You may also want to include a specific time on that date by which the automobile must be turned over.
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State the monthly lease payment. Include the grand total of all money that is to be paid during the term of the lease agreement.
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Set out any down payment to be made as part of the lease.
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Include the specific amount of any deposit required as part of the lease.
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Execute two originals of the lease agreement, one for each party. A lease agreement does not need to be notarized.
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Tips & Warnings
Consider engaging the services of an attorney to assist you in drafting an auto lease agreement. Many attorneys provide this type of basic service at inexpensive prices. You can obtain the names of attorneys involved in preparing contracts of different types from both the state and local bar associations.
If you elect to use a standard form downloaded off the Internet or purchased from an office supply store, ensure that the document complies with the particular laws in your own state. You also need to confirm that the form car lease agreement is not out-of-date due to changes in the laws in your state.
