Not everyone owns a car, but everyone wants to eventually. Cars are very expensive that owning one becomes a luxury item for the car owner. That is why car rentals have become the perfect alternative for individuals who do not own a car. If you are planning to venture into the car rental business, here are some car rental agreement examples you can use as a guide when you will be drafting your own agreement in the future.
Car rental businesses have increased in the past few years. The reason for this is the profit that individuals can gain when they enter into the car rental business. You obviously have hailed a taxi, or heard of Grab and Uber, two of Asia’s most popular ride-hailing and ride sharing companies. But you may be asking yourself if the drivers actually own the cars they are driving. The answer is yes and no. You may also see how to utilize rental agreement templates as a landlord.
For taxis, taxi companies purchase the automobiles and just hire licensed drivers to use them. For ride-hailing companies meanwhile, most drivers own their own cars but some hire drivers to use their respective cars.
Establishing a taxi company is very expensive, but establishing your own car rental company (in which actually is still expensive) is much more manageable and the chances of gaining more profit is much higher.
The great thing about having your own car rental business is that you don’t have to own the cars you want to rent out. You can use your own vehicle, and pool together vehicles from your friends or other business associates. They are now considered as your business partners and profit sharing will then be decided between you and your partners. You may also like rental agreement letter examples.
Another advantage of having a car rental business is that you are assured that your car returns to you in tip-top condition. Compared to taxis, taxi drivers usually use the car 24/7.
Although they won’t be spending for maintenance or repairs, they are responsible for keeping it clean and tidy. But let’s be honest, there are a lot of taxi drivers who sleep in their vehicles and don’t even bother to wash it. The vehicle is then left with a pungent smell that future customers won’t be happy about. You may also check out commercial lease agreement examples.
For car rentals meanwhile, the vehicle is returned to the owner or to the car rental company once the individual or group renting the car is finished with using the said vehicle.
Usually, the duration where cars are rented out are listed on a daily basis, and car rental companies usually don’t allow vehicle-renting for more than a few days (2 or 3 days max). This ensures that the vehicle is in good shape and can be rented out by another person in the future. You might be interested in lease agreement examples.
Additionally, prices for car rentals are usually fixed on a daily basis. This allows car owners to place any price to the car rental, as long as people can afford it. Car owners can always adjust the duration of the car being rented out especially if there is a high demand for the cars.
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 want to drive one. If you don’t own a car, and you want to drive around a relative who just arrived from another country or use the car to impress someone, then renting a car is your best bet. You may also see purchase agreement examples.
When you own a car rental company, or plan to start one in the near future, here are some tips to remember when creating a car rental agreement.
This is the most important part or section of not only a car rental agreement but any form of agreement that involves payment. Since this is a business, you obviously want to get paid. So, lay out all the payment details when making your car rental agreement.
Car rental companies usually have a pay-per-use policy and let the individuals renting out the car pay first before they use the said vehicle. This is actually the best payment option as you want the car being stolen since payment was not made yet. Some car rental companies have a two-payment scheme, in which the individual renting the car pays a down payment fee, then pays the remaining balance once he returns the car. You may also see sublease agreement examples.
Specifying the rental duration is a safety precaution on your part as the car owner. You want the car to be in good condition for it to be used by another person in the future. Most car rental companies allow car rentals on a daily basis, not on an hourly basis. As previously mentioned, most car rental companies do not allow their cars to be rented out more than three days. Again, this is to ensure safety of the individual and to keep the car in a good working condition for future use. You may also like commercial agreement examples & samples.
Accidents can never be avoided, especially vehicular accidents. It does not have to be full-on car crash where the vehicle is ripped into shreds or broken into half. Even a single scratch or bump can already give a massive headache for both the person renting the vehicle and the owner of the vehicle. That is why you should specify in the car rental agreement the penalties, fees, or fines in case of damages or even if the vehicle was returned late. You may also check out management agreement examples & samples.
Be strict with imposing fines as you don’t want the person renting the vehicle to abuse it. Also state in the agreement that if the individual fails to pay the fine, he will be subject to criminal charges. Car damages are never cheap, so make sure you get properly compensated in case damages are done to the vehicle. You might be interested in service agreement examples.
In case of car repairs, it is highly suggested that you have a prior agreement with a preferred vehicle repair shop in that when your car suffers damages in the hands of the person renting the car, the vehicle will be sent directly to that repair shop.
Highlight that condition in the car rental agreement so that there will be clear understanding between you and the other party. If ever an unfortunate situation arises and the car suffers damages, never allow the other party to choose his own repair shop as he might bring the vehicle to a low-quality shop. You may also see business agreement examples.
This is the probably the most basic yet most forgotten portion of any agreement. The other party may be too excited in renting out the car that he forgets to sign the agreement. As previously stated, verbal agreements should be avoided. Print out the agreement and allow both parties to affix their signatures to make the said general agreement valid and legally binding.
A car-centered article is never complete without the mention of any type of car. So we are concluding this article with five car models to watch out for in 2018. Some models may have already been released, but it doesn’t take away their impact in the automotive industry this year. You may also see partnership agreement examples & samples.
One of the kings of midsize cars is back, and the Accord does not hold back with its new exterior design and turbocharged four-cylinder engine.
Aside from a major redesign, no specific features have been released yet for the 2018 Crosstrek, making it one of the most interesting models to look out for this year.
One of the best value for money cars also makes this list. The 2018 Sonata uses a new suspension as well as new transmission. The different variations of the updated Sonata mostly has a two-cylinder engine, making it great for long travels. You may also like what is a business agreement?
Speaking of long travels, nothing beats an SUV (especially when your’e with family and friends). The 2018 version of the Expedition contains new lightweight aluminum exterior and various driver assistance features.
The ever-popular and ever-reliable Mustang gets some significant upgrades this year. The 2018 model will have a new design and a new 2.3 four-cylinder (replacing the previous V6 engine which unfortunately won’t bode well for speed freaks). You may also check out agreement templates and examples.