Sunday, September 15, 2013

What Is Car Lease Agreement?

Agreement is something that involves legal interference and person can claim opposition at the court of law in case of any inconvenience. Similarly, car leasing companies also make the leaser to sign an agreement to avoid any disparities between them at the time of leasing period. This agreement is called 'car lease agreement.'

Before signing agreement, one should ensure that they have gone through all the terms and conditions in the document and then signed the contact.

Following are some terms that are generally disclosed primarily in the lease agreement.

Lessee name - Name of the owner or leasing company offering the car lease.

Leaser name – Name of the person who is going to take the car for lease.

Cost of the vehicle – It should include purchase cost and lease cost of the vehicle at the time of agreement, because, if the person wishes to buy the vehicle at the end of the contract, he should be offered the same price that was mentioned in the contract.

Taxes – Some companies/owners may offer tax benefits, some may have extra taxes, all those should be included, and also see that tax is collected as per government rules.

Monthly payments – Some leasing companies may demand some down payment which is generally 3 months payment. It is refundable at the time of end of the lease period. Agreement should include information regarding down payment and monthly payment including taxes.

Insurance cover – If leasing company is offering any insurance cover to the leaser, then it should disclose information about what is the insurance cover given, to what extent it is given, will they collect extra money for insurance premiums, if so what is the amount?

Maintenance costs – Any extra charges for maintenance during leasing period, penalty in case of wear and tear of vehicle, etc., should be mentioned in the contract.

Penalty for extra miles – In the agreement, the number of miles allowed to traveled should be mentioned and, if the leaser drives more than specified miles, will he be charged any extra amount.

Termination period – There will be specific time limit. The agreement should include the start date and the end date of the car leased.

Authorized signatures – Should include signatures of both lessee and leaser. Leasing company's stamp and signatures of witnesses from both sides should be included in the agreement.

The person who is leasing the car should completely agree on the terms and condition before signing the contract and once the contact is signed the car remains in your responsibility until the car leasing company closes the lease.

No comments: