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Loaner Car Agreement

A loaner car agreement is a legal document that outlines the terms and conditions under which a car dealership provides a temporary vehicle to a customer whose own car is being serviced or repaired. This agreement is crucial both for the dealership and the customer, as it sets clear expectations and responsibilities for both parties.

Here are some key elements that should be included in a loaner car agreement:

Identification of the parties: The agreement should clearly identify the dealership and the customer, including their full names and addresses. It should also specify the make and model of the loaner car.

Duration of the loan: The agreement should state the dates when the loaner car will be provided and when it should be returned. This can be based on the estimated time needed for the repair of the customer`s car.

Usage restrictions: The agreement should specify any restrictions on the use of the loaner car, such as mileage limits and driving territories. It should also prohibit the use of the car for any illegal activities or purposes that violate traffic laws.

Insurance coverage: The agreement should address insurance coverage for the loaner car, including whether the dealership will provide insurance or if the customer needs to provide proof of insurance. It should also state who bears responsibility for any damages or accidents that occur during the loan period.

Fuel and maintenance responsibilities: The agreement should address who is responsible for refueling the loaner car and any maintenance or repairs needed during the loan period. It should also specify any penalties or fees for returning the car with less fuel than when it was provided, or for any damage caused by the customer.

Indemnification and liability: The agreement should include a clause stating that the customer agrees to indemnify and hold the dealership harmless from any claims, damages, or liabilities arising out of the use of the loaner car.

Termination and default: The agreement should specify the conditions under which the dealership can terminate the loaner car agreement, such as if the customer breaches any of the terms or uses the car improperly.

By including these elements in a loaner car agreement, both the dealership and the customer can protect their interests and avoid any misunderstandings or disputes. It`s important for the dealership to ensure that the agreement complies with all relevant laws and regulations, and for the customer to carefully review and understand the terms before signing.

Loaner Car Agreement
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