Car Lease Agreement Template

This car lease agreement template is designed specifically for leasing a vehicle from a dealer or private owner to an individual or business. It reflects the practical elements of real car lease contracts:

• Template works for both consumer and business lessees, with the language easily adjusted for both
• Includes Schedule A for vehicle details and Schedule B for approved drivers
• Accommodates numerous lease rate structures: one-time fee, monthly billing, or cost per mile
• Includes a clause on fuel level upon return, location, and vehicle condition
• Ready to use free legal form available in Word and PDF formats

Who It's For

Use this car lease agreement example for most situations where a vehicle is leased to an individual or business. Ideal if you are: 

• A car dealership looking to create lease agreements with customers, short and long-term
• A private owner leasing their car to an individual or business
• Leasing a company vehicle to an employee or contractor as part of their fleet management
• Need to lease a vehicle from a third party for business use
• Renting a car privately from an owner, and want the lease terms in writing

If you’re a dealership creating agreements for high-volume lease transactions, you may need to tailor this template to comply with local consumer law requirements. Private lessees can likely use the template with little customization.

What's Included in the Car Lease Agreement Template

This car lease agreement form includes the clauses you’d expect to see in any standard vehicle lease contract. Take a look inside before downloading: 

• Definitions: Clarifies terms used repeatedly, like “Vehicle,” “Approved Drivers,” “Lease Rates,” “Date of Collection,” and “Return Date.”
• Lessor’s Obligations: Confirms that the owner will make the vehicle available at the start date and location
• Lessee’s Obligations: Covers the fuel level at return, and the lessee will pay lease rates on time and abide by usage rules
• Lease Rates: Defines rates for the lease and any deposit required upfront
• Term, Collection, and Return: Start and end dates, pickup location, condition on return
• Use of Vehicle: What the vehicle can be used for, if there are geographic limitations, or mileage limits.
• Warranties and Indemnities: This is where the parties expose their liability to each other during the lease
• Governing Law, Disputes, and Arbitration: This sets the jurisdiction and how disputes get resolved should the lessee default
• Schedule A: Details vehicle information, including year, make, model, registration, mileage, etc.
• Schedule B: Names the authorized drivers who can drive the vehicle during the lease term

How to Write This Car Lease Agreement

The agreement template does all the heavy lifting for you. There are a few sections, however, where your negotiations will dictate the language. Let’s walk through these parts: 

1. Decide on a structure for your lease rates

The lease rates section allows for payments to be calculated in many ways. Start here. Don’t just throw out a fee. Do you know how much the lessee will drive? If not, charging a per-mile rate protects you if they suddenly start driving everywhere. Agreeing to a fixed monthly fee works better when both parties know the term and expect consistent usage. Whatever you decide, be clear on how payments are determined so that the amount owed cannot be disputed later.

2. Agree on vehicle use limitations 

This is where disputes can come after the fact. If you allow the vehicle to be driven outside of California, say so. Mileage limits should be defined here, along with the penalty for exceeding them. Additionally, if the lessee cannot sublease the vehicle to a third party, make that clear.

3. Fill out Schedule B purposefully 

If someone who isn’t listed on Schedule B uses the vehicle and injures themselves or damages the car, the lessee could be on the hook for more than you anticipate under the warranties and indemnities clause. Put every potential driver’s name on the list.

4. Select an applicable governing law 

Fill in the state where the agreement will be executed. Typically, this will be the same state as the lessor, but if the lessor and lessee are in different states, you’ll need to decide which one applies. This clause establishes which courts have jurisdiction over any claims and which state consumer/commercial laws apply.

5. Download your customized template, sign, and keep copies

Once you customize the lease agreement template to fit your deal, download it as a Word doc or PDF, sign online or with a pen, date it, and give each party a copy. If you sign using an electronic signature service, a PDF copy is saved that can’t be edited.