Car rental agreement between individuals: sample contract

Each person who owns a vehicle can not only use the car for different purposes, but also dispose of it at its discretion. Often property is leased to other citizens, for which an appropriate contract is drawn up. The process has some difficulties and nuances. Therefore, it is important to understand how a car rental agreement is drawn up between individuals, which items are necessarily included in this agreement, as well as what tax consequences the car owner has to face.

Basic information

Before concluding a contract, on the basis of which the car is transferred for use to another citizen, the car owner should take into account some requirements:

• A sample of a car rental agreement between individuals is studied in advance in order to understand the conditions under which cooperation will be implemented.
• To conclude a transaction, you do not need to use the help of a lawyer or a notary.
• Be sure to pre-prepared personal documents by each participant.
• The lessor must have the original documents for the transferred car.

When drawing up the agreement, it is important to pay attention to the essential conditions, which include the lease term, the amount of the monthly payment, the procedure for depositing funds and other important information. A sample car rental agreement between individuals can be studied below.

Legislative regulation

When transferring a machine for use by another person, it is important to take into account the various regulations governing this procedure. These include:

1. Art. 632 Civil Code and Art. 642 of the Civil Code contain information that when transferring to use for a certain fee any property, it is important to formalize the lease, for which a corresponding contract is drawn up.
2. Art. 420 of the Civil Code includes the specifics of signing an agreement between individuals or private entrepreneurs.
3. Art. 614 Civil Code displays different terms for which a contract may be concluded.

Additionally, a lot of information is contained in other articles of the Civil Code, therefore, the lessor must be well versed in these regulations in order to ensure the legal purity of the transaction and to protect itself from possible fraud.

What documents are prepared

Before drawing up a car rental agreement between individuals, the car owner must prepare a specific set of documents. The following papers are included in it:

• passport of the direct owner of the car;
• registration certificate;
• car passport;
• a service book confirming that the car is in good condition;
• direct lease containing essential terms of cooperation;
• car insurance insurance policy;
• driver’s license.

A person planning to use the car prepares his passport and driver's license. He is obliged to carefully study the form of the car rental agreement between individuals to make sure that it includes all the important information.

Options

When concluding a car rental agreement between individuals, all the nuances of cooperation between the parties to the transaction are negotiated. The landlord may offer several rental options:

1. With the crew. This option assumes that the car is transmitted along with the driver. It is the driver who manages and maintains the vehicle.He is responsible for the optimal condition of the property. Most often, such an agreement is drawn up when renting trucks.
2. No crew. Only the car transfer service is provided. The landlord does not perform any additional actions. The machine is used temporarily by the tenant, so he acts as a responsible person.
3. Free of charge. A car rental agreement between individuals on such conditions implies that another citizen can use the car without transferring rental payments. The agreement must contain a clause stating that the lessee should not transfer funds to the owner of the car.

Most often, a standard contract is drawn up, on the basis of which only a machine is provided for use for monthly equal payments.

The nuances of cooperation of citizens

When drawing up a car rental agreement between individuals, the nuances must be taken into account:

• It is allowed to draw up an agreement without the need for a tenant to transfer funds.
• It is not required to register a document with the Federal Register if its validity does not exceed one year.
• If there is no information about payments, then the document is free of charge.
• Direct participants can complete the process without the help of lawyers or notaries.
• If essential conditions are not indicated in the contract, then it through the court is easily recognized as invalid, and the participants are exempted from fulfilling obligations under the agreement.

Each participant must take a responsible approach to drafting this agreement, which will allow him to avoid numerous negative consequences. Therefore, if a citizen receives a constant profit from renting out property, it is advisable for him to use the help of a lawyer.

Content of the agreement

When drawing up a car rental agreement between individuals, it is important to make sure that the agreement contains important information and nuances of cooperation. The following data must be included in the contract:

1. Information about the participants in the transaction, to which their full name belongs, address of residence, information from passports and contact details.
2. The car that is the subject of the transaction is described, for which its brand, year of manufacture, body number, registration number, mileage, type and category are indicated.
3. Data on the amount of the monthly payment represented by the rent is given.
4. The procedure for transferring funds is indicated, since they can be transferred personally to the lessor, transferred to his account with a bank, or a bank cell can be used at all.
5. It indicates how the transfer of money is confirmed, for which receipts are most often drawn up.
6. The terms are given during which the lessee must transfer funds for using the machine.
7. The term of the agreement, and if it exceeds one year, you will certainly have to register the agreement with Rosreestr.

The above information is basic, so if there is no item, the interaction between the parties may be difficult. It is advisable for both parties to the transaction to study in advance a standard car rental agreement between individuals in order to take into account all the nuances of the process.

Rights and obligations of participants

When concluding a transaction, each participant must have both rights and obligations. In this case, certain nuances are taken into account:

• The car owner must transfer the car, which is in working condition and optimal for use, so a preliminary inspection is carried out.
• All documents on the car are transferred to the user, to which the MTPL policy applies, and the direct lessor is engaged in its design.
• The owner must receive the car in good condition after the expiration of the contract.
• The rent is determined by the direct participants, which takes into account the brand, value and condition of the car.
• The lessee must use the vehicle for its intended purpose.
• If a lease is made with the crew, then it is the landlord who must take care of the good condition of the car, carry out repair work and other necessary procedures.

If the tenant wishes to sublease the car, this should be provided for in the main lease agreement.

Rules for trucks

When drawing up a truck rental agreement between individuals, certain nuances arise:

• an agreement is being formed in a standard form;
• it must be indicated that the truck is being transferred;
• the specifics of using the car may be given, for example, it can be used for transportation between cities or for working as a taxi.

Most often, citizens prefer to rent trucks with crew.

Participant Risks

When drawing up a simple car rental agreement between individuals, certain risks appear for each participant. These include:

1. The user may have an accident, which will cause serious damage to the car. Therefore, the lessee will have to reimburse costs at his own expense, and repairs can also be carried out at the expense of the insurance company in the presence of an insurance policy and the tenant is not guilty.
2. There is a risk that property will be damaged not as a result of a collision with another car, but under different conditions while using the machine. Often there are breakages or scratches, chips or other problems. It is the tenant who is obliged to carry out maintenance or overhaul during the lease. This carries additional risks of loss of funds.
3. The loss of the market value of the machine. Even if the car will be used carefully, it still wears out in natural conditions, so its market value is reduced. Therefore, when calculating rental payments, depreciation is taken into account, and the agreement may also provide for an additional payment due to the loss of the market price.
4. The lessee may sublet the car without warning the owner.
5. The car user may not transfer rental payments on time. In case of violation of the terms or the payment procedure, an early termination of the contract occurs. After that, the lessor may require the lessee to recover damages and transfer the due amount of funds. If a citizen refuses to comply with these requirements, then disagreements will have to be resolved through a court.

When drawing up the contract, the parties may provide for other risks.

The nuances of the formation of the contract with the right to buy

Some car owners offer the option of renting foreclosed property. The nuances of such an agreement include:

• the duration of the contract is usually long;
• the payments include not only the rental fee, but also for the purchase of a car;
• the condition of the possibility of redemption may be included in the contract or a separate agreement may be drawn up for this;
• redemption can be made at the end of the contract or at any time when the tenant will have the necessary amount of funds;
• Each party to the contract can terminate the agreement at any time, which does not lead to a return of rental payments.

When drawing up such a contract, it is important to pay a lot of attention to the rules of repurchase.

Tax consequences

Since the car owner makes a profit from putting the car into the arena, it is advisable to issue an IP for transferring taxes to the budget. If the activity is carried out illegally, this will lead to the prosecution of the citizen.

If the term of the agreement exceeds one year, then it is additionally important to register a car rental agreement between individuals at Rosreestr.Taxes depend on the chosen tax regime. If a citizen does not draw up an individual entrepreneur, personal income tax depends on the size of rental payments.

Conclusion

Any car owner can rent a car to other citizens. For this, it is important to correctly draw up a lease.

It is allowed to include in the agreement the possibility of buying a car. In case of violation of the terms of the contract, an early termination of the agreement occurs.