Not everyone owns a car, but everyone wants to eventually. Cars are costly, so owning one becomes a personal luxury item. That is why car rentals have become the perfect alternative for individuals who do not own any. If you are planning to venture into this business, here are some car rental agreement examples you can use as a guide to making it easy to draft your agreement in the future.
A car rental agreement is a legal document used when renting out a car for the driver’s use. It serves as a contract between the renting driver and the car rental company that lends the vehicle. The agreement states the terms and conditions that the person must follow once they rent the car.
Starting a vehicle rental business can be a lucrative move for you. According to a study by Statista, the car rental industry’s total revenue has been going up for the past two decades. From $16.43 million in 2002 to $28.63 million in 2017. Apart from getting cars for your business, you will need to come up with ideas of your car rental agreement form.
This is the most crucial part of not only a car rental agreement but any form of service contract and letter that involves payment. Since this is a business, you want to get paid. So, layout all the payment details when making your car rental agreement.
Specifying the auto rental duration is a safety precaution on your part as the car owner. You want the car to be in good condition for another person to use in the future. Most car rental companies allow daily car rentals. Whether for a short term or long term use, it is essential to know how long the driver intends to use it.
You can’t avoid accidents, especially vehicular ones. That is why you should specify in the car rental agreement the penalties, fees, or fines in case of damages or even if they return the vehicle late. Be strict with imposing fines as you don’t want the person renting the car to abuse it. Car damage is never cheap, so make sure you get compensated adequately in case the vehicle sustains any damage.
This is probably the most basic yet most forgotten part of any agreement. The other party may be too excited about renting out the car that he forgets to sign the lease. Avoid making verbal agreements in this line of business. Print out the agreement and allow both parties to affix their signatures to make it valid and legally binding.
Instead of renting a car in person, it will save you a lot of time and cash to rent online. Nowadays, there are a lot of apps and ways to do it with ease.
Yes, getting insurance, in general, is a good idea. You can get liability coverage before taking your car for a spin. Get it, especially when you know you are hitting the rough side of the road.
Instead of spending money on renting a car for yourself, you can save a lot of money by carpooling. Carpooling lets you share a vehicle with a friend. It also has a bonus of letting you both help each other during the ride.
Try to inject a bit of your brand into your car rental agreement forms to make it appear less generic. With a well-thought-out brand design, your business will be more recognizable and acquire new customers. Car rentals will continue to be profitable as long as car manufacturers will still make cars. As previously mentioned, not everyone owns a car but wants to drive one, and renting one is the best thing for them to do. Your business will thrive as long as these kinds of people exist.