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12 Free Car Rental Lease Agreement Forms & Templates

Car Rental Services are common practice in most cities around the world. When you are looking to rent a car for a short or long period, you will be asked to sign a car rental agreement. A car rental agreement holds both parties to several responsibilities.

It is important that before creating or signing a car rental lease agreement, you understand what it is and the information that you would be required of you when filling in the document.

What is a Car Rental Agreement?

A car rental lease agreement is a legal document you must fill and sign when requesting a car hire service. It is a binding agreement between you and the car rental company.

Naturally, a car rental lease agreement highlights the terms and conditions both parties should meet during the car hire process. All rental services have different terms and conditions of service that are applicable during the car rental period.

A car rental lease agreement holds you accountable for the car throughout the lease period. Hence, you must read it keenly and understand every aspect of the lease agreement before appending your signature.

Features of a Car Rental Lease Agreement

Following are a few distinct features of car rental agreement:

Condition of the vehicle

A car rental lease agreement highlights the condition of the vehicle being hired. The car rental company or the leaser must ensure that the vehicle is in perfect working condition before leasing. At the end of the lease period, the car hire company usually examines the car to ensure that it is returned in the same working condition. Any damages or negative changes would automatically result in fines and payment of the damages. You should, therefore, examine the car before signing the lease to ensure that it is in perfect working condition.

Mileage limit and gas tank reading

Most car rental lease agreements usually include the mileage term limit. Some provide an unlimited mileage limit for their vehicles, while some you may require you not to exceed a stipulated mileage as enshrined in the agreement. In the latter, you may be required to pay extra charges to cater for any extra mileage not initially included in the agreement.

Most car rental lease agreements contain a fuel policy and the gas tank reading. At times you will be given a vehicle that has a full fuel tank and is required to refuel the rental car before returning. This is referred to as the “Full to Full” policy.

When checking the vehicle, check the gauge to ascertain that the fuel level is the same as stipulated in the agreement.

Rental period

A car rental lease agreement clearly stipulates the duration of the car rental. For example, you may be required by a car rental service to pick up and return the car at a specified time. If you fail to abide by their terms of service, you may have to pay extra charges.

Rental vehicle details

A car rental lease agreement highlights the full details and specifications of the vehicle-for-hire. These details include the car type, license plate, color, model, and vehicle category.


This includes an undertaking statement whereby the hirer pledges to take good care of the car for the duration of the car rental. Here the hirer warrants that they will be liable for any damages incurred during the lease period.


The car rental lease agreement should confirm that the vehicle leased out is in excellent working condition.

Rental agreement terms and conditions

In a car rental lease agreement, the car hiring company must state its terms and conditions of service. This usually varies according to the preferences of the car hiring company or the general guidelines provided by their supervising body.

For example, some car hire companies may require that the customers do not exceed a set mileage while others offer unlimited mileage


A car rental lease agreement should also contain the basic rental fee and any additional charges. Normally, they will require you to pay a certain amount as a deposit on your credit card.

Car Rental Agreement: Template

1.    The Parties to this car rental agreement herein referred to as the “Agreement” are:

1.1.        The Owner:

Silverstone Limited

P.O Box Ring Road 272

Miami Drive


1.2.        The Renter:

Surname: ______________

First Name: ____________

Social Security/ Identity or other (specify) number: ______________

Physical Address: _____________

The Parties herein choose the above-stated address as their physical address in which all legal proceedings shall be instituted.

2.    The property being rented out is:

2.1. Type of Vehicle: _____________________

2.2. Color and Make: _____________________

2.3. Year: _________________

2.4. Model: _______________

2.5. Registration Number: _________________

3. Condition of the Vehicle:

3.1. The Owner of the vehicle states that to the best of their knowledge and belief that the above-mentioned vehicle is in sound and safe working condition and free of any known faults or defects which would affect its operation under normal use.

4. Qualifications:

4.1. The Renter of the vehicle states that they are physically and legally qualified to operate the above-mentioned vehicle.

5. Rental Period:

The Owner of the vehicle agrees to rent the above-mentioned vehicle to the Renter for:

5.1. Starting Date: _______________

Time: _________

5.2. End Date: _______________

Time: ______________

6. Rental Rate:

6.1. The Renter herein agrees to pay the Owner at the rate of _____ (amount) per hour/day.

6.2. All the fuel consumed during this duration shall be paid for by the Renter.

7. Exclusions:

7.1. The vehicle shall not be used for any illegal activities

7.2. The rented vehicle shall not be used by the Renter or any other party to carry passengers or property for hire

7.3. the Renter shall not use the vehicle for any races

8. Insurance:

8.1. The Renter herein agrees that they shall be held fully responsible for the first ________ [amount] deductible in the case of an accident. They also agree that only the vehicle is covered under the insurance policy and that the driver and/or passenger are not covered. The Renter also agrees that any personal belongings and other items left in the vehicle are not covered whatsoever.

9. Deposit:

9.1. Besides, the Renter agrees to make a deposit of ______ [amount] with the Owner, said deposit to be used, in the event of damage to the vehicle or loss during the term of the lease.

9.2. In the absence of any damages or loss, the deposit shall be credited towards the full payment of the lease, and any excess shall be returned to the Renter

10. Return of the Vehicle

10.1. The Renter herein agrees to return the above-mentioned vehicle to the pick-up location not later than ___________

11. Jurisdiction:

11.1 Both parties consent that this is a legally binding agreement in the state of ________

Signed at: _________ on this: _______ day of _________ 2020.

Owner: ____________

Renter: ___________

Free Downloadable Agreements







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      How to Protect Your Car Rental from Accident or Theft

      Following are the ways to avoid accidents and theft problems of rental cars:

      Insure your car

      As a car rental service company, it is vital that you have full vehicle insurance for all your cars for hire. It is essential that as a company, you get an insurance cover, covering both your business and the cars available for hire.

      Typically, car rental lease agreements hold the hirer responsible for any damage suffered during the rental period. Nevertheless, it is still essential for the rental company to have insurance.

      You can choose one or more fleet insurance policies for all your vehicles. Moreover, you can subscribe to general business insurance to help cover your employees, on-work, and workspace liabilities.

      Install a car tracker

      A car tracker is an electronic tracking device that helps monitor your car’s location. This makes it a convenient device for combating/mitigating car theft. Even though a car tracker may not necessarily prevent car theft law enforcement agencies can use the tracker to track down your car’s location if it has been stolen. Car tracking devices use GPS to locate cars wherever they are packed.

      The computerized geofencing functionality of the car trackers enables one always to create a virtual perimeter of their fleet. Every time the car leaves the perimeter, it will automatically send you a notification, thereby making it easy for you to track and curb theft cases.

      Car trackers also come with an automated vehicle alarm system. This system uses the tracker’s GPS communication system to notify when the car has been stolen.

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