This Vehicle Lease Agreement (hereinafter the "Agreement") is entered into and made effective as of the date set forth at the end of this document by and between the Lessor, ________ , (hereinafter referred to as "Lessor"), of the following address:
and the Lessee, ________ (hereinafter referred to as "Lessee"), of the following address:
The parties agree to the following:
I. RECITALS.
WHEREAS, the Lessor is the registered owner of the Vehicle.
WHEREAS, the Lessor wishes to lease the Vehicle to the Lessee on such terms as are set out in this Vehicle Lease Agreement (the "Agreement") and the Lessee wishes to lease the Vehicle from the Lessor on said terms,
WHEREAS, this Agreement is a lease only and the Lessee will have no right, title, or interest in or to the Vehicle except for the use of the Vehicle as described herein;
WHEREAS, this Agreement shall be treated as a true lease for federal and applicable state income tax purposes with Lessor having all benefits of ownership of the Vehicle,
NOW, THEREFORE, IT IS HEREBY AGREED as follows:
II. LEASED VEHICLE DESCRIPTION.
1. The following vehicle (the "Vehicle") is the subject of this Agreement:
Vehicle Age: New
Body Type: ________
Odometer Reading: ________ (________) miles
License Plate: ________
Vehicle Identification Number (VIN): ________
Vehicle's Intended Purpose: Personal
III. AMOUNT DUE AT LEASE SIGNING.
2. Lesser and Lessee agree on the following amount due at lease signing, based on these terms:
-- A refundable security deposit shall be paid in the amount of $ ________ (________)
-- A down payment shall be made in the amount of $ ________ (________)
-- Applicable title, license, and registration fees will be paid in the amount of $ ________ (________)
-- Lessor will provide Lessee with GAP Coverage for a fee of $ ________ (________)
AMOUNT DUE AT LEASE SIGNING: $________
IV. TRADE-IN ALLOWANCE, DISCOUNTS, AND REBATES.
3. Lessee will be allowed a net trade-in allowance of $ ________ (________)
4. Lessor is offering the following amount in discounts, rebates, and/or incentives: $ ________ (________)
V. LEASE COSTS AND FEES.
5. The Lessor and Lessee agree to the following terms regarding the total cost of the Lease, excluding any costs for repairing any excess wear and tear of the Vehicle:
a. The full retail cost of the Vehicle is $ ________ (________).
b. The Lessor and Lessee have negotiated and agree that the value of the vehicle is $ ________ (________).
c. A good faith estimate of the residual value of the Vehicle is $ ________ (________).
d. The invoice price of the Vehicle minus any applicable net trade-in allowance, down payment, rebate, non-cash credit, or cash paid (net capitalized cost) is $________ (________)
e. The amortized amount over the term of the Lease is $________ (________).
f. The term of the Lease is for the following number of months: ________ (the "Term").
g. The total base monthly depreciated payment is $________ (________).
h. Lessor is charging a lease rate of ________ %
VI. LEASE PAYMENTS.
6. Lessee shall pay to Lessor annual installments of $ ________ (________)
7. The lease payments shall be payable in advance on ________ of each year.
8. Payments may be made in the following acceptable manners:
9. Payments are to be made to the Lessor at the address listed above. The payment address may be changed at the discretion of the Lessor and the Lessee will be informed of such change by written notice.
VII. SECURITY DEPOSIT.
10. The Lessee shall pay a security deposit of $ ________ at the time that this Lease is signed. This deposit will be returned to the Lessee at the termination of the Lease, subject to the option of the Lessor to apply it against Lease charges and damages. Any amount refundable to the Lessee shall be paid at the time this Lease is terminated.
VIII. LATE PAYMENT FEES.
11. A late fee of $ ________ (________) will be charged on all payments that are paid after the due date.
IX. MILEAGE LIMIT.
12. Lessee will be permitted to drive the Vehicle for a maximum of ________ miles per year and will be charged $ ________ (________) per extra mile if the Vehicle is driven over the allotted number of miles.
X. GAP PROTECTION NOTICE.
13. In the event of theft or damage to the Vehicle that results in a total loss, there may be a gap between the amount due upon early termination and the proceeds of your insurance settlement and deductible.
14. This Lease provides that Lessor will offer gap coverage to Lessee for a fee of $ ________ (________).
XI. INSURANCE.
15. Lessee must maintain Automobile Liability Insurance in the form of any applicable bodily injury and property damage coverage, and collision and comprehensive insurance, as required by Alabama law. Proof of insurance or the insurance card must be provided to the Lessor upon request.
16. The Lessee is responsible for insuring the Vehicle based on its full value.
17. The Lessor will be named as the registered owner and as "Additional Insured" and loss payee in the insurance policy.
XII. TAXES AND FEES.
18. During the term of this Lease, the Lessee shall pay all applicable taxes, assessments, and license and registration fees on the Vehicle.
XIII. END OF TERM LIABILITY.
19. The residual value of the Vehicle is based on a reasonable, good faith estimate of the value of the Vehicle at the end of the lease term. If the actual value of the vehicle at that time is greater than the residual value, Lessee will have no further liability under this Lease, except for other charges already incurred. If the actual value of the Vehicle is less than the residual value, Lessee will be liable for any difference up to three (3) times the monthly payment. For any differences in excess of that amount, Lessee will only be liable if:
(a). Excessive use or damage representing more than normal wear and use resulting in an unusually low value at the end of the term;
(b). The matter is not otherwise resolved and Lessor wins a lawsuit against Lessee seeking a higher payment;
(c). Lessee voluntarily agrees with Lessor after the end of the lease term to make a higher payment.
20. Should the Lessor bring a lawsuit against the Lessee, the Lessor must prove that the original estimate of the value of the leased property at the end of the lease term was reasonable and was made in good faith. For example, Lessor might prove that the actual was less than the original estimated value, although the original estimate was reasonable, because of an unanticipated decline in value for that type of vehicle. Lessor must also pay for attorney's fees.
21. If Lessee disagrees with the value assigned to the Vehicle, Lessee may obtain, at Lessee's own expense, from an independent third party agreeable to both parties, a professional appraisal of the value of the leased vehicle which could be realized at sale. The appraisal value shall then be used as the actual value.
XIV. EARLY TERMINATION DISCLOSURE.
22. Lessee may have to pay a substantial charge if this Lease is ended early. The charge may be up to several thousand dollars. The actual charge will depend on when the Lease is terminated. The earlier the Lease is ended, the greater this charge is likely to be.
XV. EXCESSIVE WEAR AND USE.
23. Lessee may be charged for excessive wear based on Lessor's specifications and generally accepted standards for normal use. Excessive wear and tear includes, but is not limited to: damaged glass, damaged body panels, lights, fenders, paint, dysfunctional accessories, extremely worn tire tread, any damage to the interior, and any mechanical damage that interferes with the safe and lawful operation of the Vehicle.
XVI. PURCHASE OPTION AT END OF LEASE TERM.
24. Lessee will have the option to purchase the Vehicle at the end of the Lease term for $ ________ (________).
XVII. NOTICES.
25. All notices required or permitted under this Lease shall be deemed delivered when delivered in person or by mail, postage prepaid, addressed to the appropriate party at the address shown for that party at the beginning of the Lease.
XVIII. ASSIGNMENT.
26. The Lessee shall not assign, transfer, or sublet of any of its obligations, rights, or interests under this Agreement to any third party, whether an associated entity or not, whether in whole or in part without prior written consent of the Lessor.
XIX. TERMINATION.
27. If Lessee fails to pay any amount due under this Agreement or to comply with any of the covenants contained in this Agreement, Lessor may terminate this Agreement upon thirty (30) days written notice and exercise any remedies under applicable law.
XX. EVENT OF DEFAULT.
28. The Lessee will be in default if the Lessee fails to make a payment on its prescribed due date, the Lessee has misrepresented personal or financial information, the vehicle is damaged or is beyond repair, the vehicle is not returned at the end of the Lease term, Lessee fails to maintain vehicle insurance as required, or Lessee breaches any other term of this Lease.
XXI. RETURN OF VEHICLE.
29. At the end of the Lease the Vehicle may be returned to the care of Lessor. Lessee shall pay any applicable end-of-lease costs.
XXII. COSTS, EXPENSES, FEES, AND CHARGES.
30. Lessee agrees to pay all fines, tickets, or penalties incurred in connection with the operation of the vehicle during the term of this Agreement.
XXIII. MAINTENANCE.
31. Lessee agrees, at its expense, to maintain the Vehicle in good condition, repair maintenance, and running order and in accordance with all manufacturers and warranty requirements. Lessee shall be responsible for all expenses that shall result as a part of the normal wear and tear of the automobile.
32. Lessee agrees to comply with the Lessor's requirements of maintenance of the Vehicle such as, but not limited to, tire rotation and replacement, replacement of the air filter, replacements of hoses, clamps, belts, spark plugs, and oil changes.
XXIV. SEVERABILITY.
33. If a court holds any provision of this Agreement to be illegal, invalid, or unenforceable, the remaining provisions shall remain in full force and effect and the Parties will amend this Agreement to give effect to the stricken clause to the maximum extent possible.
XXV. 8555 82 LOSS.
________ . 228822 5885228 525 525228 22 8255 252 222852 5882 22 8288 22, 25222 22, 552522 22, 25 52825582822 22 252 5258882 2522 522 85582 8552822825. 52 252 28222 22 8585 2885552282 22 5258882, 228822 85588 2882 228825 252222 222882 22 252 2885552282 525 2525252225 8888 28582 252 5258882 82 2225 522585, 822582822, 525 8252822 25525.
XXVI. 25255855885, 8885258825 8855585, 888 5585825 MODIFICATIONS.
________ . 552 5258882 88 222 22 82 22255225 82 5588258 8825252 52 52252258522 8882282 25 25282 5282588225 52525 252 828555282 228882.
________ . 228822 525228 2552 82 8888 222 225282 252 5258882 22 82 8285225 82 5 82522 22525 2552 252 82522 82 85885 252 5258882 88 282825 225 522 8222825258 225825 22 2822 2552 82585 5285852 8585 5258882 22 828222 8582282 22 252 2828822 525/25 522882552822 8588 22 8585 22525 82522.
________ . 58822 252 5258882 22 25828 22 8288 2552 88522 (58) 5528 882582 82228222258 82525 8225885 88 225282225. 822 2582228228 852 2282 82 2552 5222 228825'8 25825 8582222 8228222.
________ . 822 2258288528228 25 82822288 555828228 22 252 5258882 552 222 225282225 8825252 252 228825'8 25825 8582222 8228222.
XXVII. WAIVER.
34. The failure of either party to enforce any provision of this Lease shall not be construed as a waiver or limitation of that party's right to subsequently enforce and compel strict compliance with every provision of this Lease.
XXVIII. WARRANTIES.
35. The Vehicle herein is in an "as is" condition and Lessor has not made, and does not hereby make, any representation, warranty, or covenant expressed or implied with respect to the condition, quality, durability, capability, or suitability of the Vehicle or against any patent or latent defects therein.
XXIX. EARLY TERMINATION.
36. There is no cancellation period before the end of this Lease. This Lease may only be terminated with the Agreement of the Lessor or upon proven and valid legal cause.
XXX. INSPECTION.
37. Lessor and Lessee acknowledge that the Vehicle has been inspected and the Lessee accepts the Vehicle as being in good condition, not including manufacturer's defects.
XXXI. ENTIRE AGREEMENT AND MODIFICATION.
38. This Lease constitutes the entire agreement between the Parties. No modification or amendment of this Lease shall be effective unless in writing and signed by both parties.
XXXII. INDEMNIFICATION.
39. Lessee agrees to indemnify and hold harmless the Lessor from any loss and shall keep the Vehicle free from encumberances, fines, liens, claims, and expenses resulting from the maintenance and use of the Vehicle.
XXXIII. GOVERNING LAW.
40. This Lease shall be construed in accordance with the laws of Alabama .
SIGNATURE OF LESSOR:
By: _______________________________________
________
SIGNATURE OF LESSEE:
By: _______________________________________
________