|
 |
Car Lease Agreement Form. Why Do You Need It? |
||
|
|
We frequently get asked by visitors if we have an auto lease agreement form or a car leasing form available on our web site. Our answer is "Yes, in our Lease Kit" but then we ask them why they want it. You see, the sample lease agreement that we include in our Lease Kit is for educational purposes and is annotated to help explain the purpose and meaning of each part of the form. By understanding this sample form in advance, leasing consumers can be prepared when presented with a real lease contract in a dealer's business office. But the answer we often get from our enquiring visitors usually reveals that the lease form is needed as a way of formalizing and legalizing an agreement to lease a car from one private party to another. The underlying assumption is car leasing is like apartment leasing and the agreement would be much the same. It is not. Unlike apartment leasing, which is really apartment renting, car leasing is not renting at all. It's unfortunate that the same term is used for both kinds of transactions because it creates broad misunderstanding and confusion. Car lease agreements are only transacted by car dealers, lease finance companies, and banks. These agreements must contain Federally-mandated disclosures, contain specific language, specify lease-end residual values that typically come from residual "black books", and state how early-termination calculations are done — just to name a few of the elements of a "simple" agreement form. Lease forms are often different, depending on the state in which the lease is transacted. Sales taxes are also specified in the contract and collected by the lease company on behalf of the state and/or locality. So, for those who are simply attempting to arrange some form of formal contract to loan or rent a car to a friend or relative, a lease agreement form is NOT the way to go. In fact, any such agreement is very risky, especially between strangers, and is not recommended. There are insurance issues to consider, default and recovery issues, maintenance issues, and liability issues. If you absolutely must try to find a way to arrange a rental or loan agreement, but not a lease agreement, we suggest you search Nolo.com for advice and forms.
Comments and questions should be directed
to
. |
Return
to