Car Rental Agreement

What is a car rental agreement?

A car rental agreement is a legally binding contract between a vehicle owner and a person or business renting the vehicle for a defined period of time. In Australia, this agreement defines the legal framework for car hire rental, including:

• rental period;
• payment terms;
• mutual parties’ obligations;
• vehicle’s description;
• termination and insurance.

The parties involved in a rental car agreement are a lessor, or a vehicle’s owner, and a client. The main purpose of the document is to clearly establish the relationship between the lessor and the renter, as well as to provide legal protection for both parties in case of a dispute.

Who should use this car rental agreement template?

This car rental agreement template can be suitable for:

• professional car hire businesses operating in Australia;
• international car rental agencies;
• private vehicle owners willing to rent out their car for extra income;
• tourist agencies offering extra car rental services for their clients;
• hotels and Airbnb accommodations providing car hire services for clients.

This document is not suitable for the sale-purchase of vehicles, since another template should be used instead.

What should be included in a car rental agreement template?

There is no specific law that regulates car hire rental agreements in Australia. The document itself is usually subject to the general principles of contract law, as well as to the main requirements provided by the Australian Consumer Law. A typical car hire rental agreement must include:

Vehicle Description

A good example of car rental agreement must include a description of the vehicle that is being leased, including:

• make and model;
• type of a vehicle;
• colour;
• year of manufacturing;
• VIN number;
• odometer details (in kilometers).

Rental Period

The text of every car hire rental agreement should define the exact duration of a lease. The contract can last from a few days to several months or years depending on the parties’ needs.

For long-term rentals it is also common to include an automatic renewal clause allowing parties to automatically prolong existing car rental agreements without any hassle.

Rental Fees

A typical rental car agreement should outline the payment terms, including:

• amount of lease payments;
• frequency of lease payment (such as per day, per month, or per week);
• security deposit;
• acceptable payment methods;
• additional charges and fees (for example, a fee for a car seat or for a GPS navigator).

Buyout Option

For a long-term car rental agreement, it is common to include a buy-out option. This clause allows a client to purchase a car or vehicle that has been rented for some time. In that case, the text of a document must also include a purchase price stated in Australian dollars. Usually, a purchase price is being reduced by the total amount of lease payments paid during the rental period.

Duties of Client

It is common for car rental agreement samples to have a separate clause defining a client’s main duties on how a vehicle should be used, for example:

• to use a vehicle according to the agreed purpose;
• to not use a vehicle for street racing or taxi;
• to not drive more than the agreed minimum of kilometers per year;
• to not travel to specific states or territories;
• to not drive during nighttime, etc.

Failure to comply with these or any other obligations may result in a rental car agreement being terminated earlier.

Termination

Rental car agreements are very flexible when it comes to termination. Either party usually should be able to end the contract at any time, provided certain conditions are met.

It is important to understand that both parties cannot end the agreement without a cause or for no reason. Termination can take place in the following circumstances:

• For a vehicle’s owner (lessor). In case lease payments are not paid on time, a vehicle is not being used for the agreed purpose, a client loses mandatory insurance for a vehicle, or other conditions stipulated in the original car rental contract.
• For a client. In case a vehicle does not fit for the agreed purpose, a vehicle is broken or damaged and cannot be replaced, a lessor cannot provide a vehicle as per description, etc.

ACL protection

A lease agreement for car rental agreement is subject to Australian consumer laws. For car hire agencies or private lessors, it means that the original contract cannot limit statutory consumer rights. A consumer’s statutory rights include a right to request repair, replacement, or remedies if a car does not fit for purpose, does not function properly, or causes damage or injuries to a customer or their property.

Why choose this customisable car rental agreement?

Having a well-drafted and fully customisable car rental agreement for your business or private needs is the right legal solution, and here is why:

• the template is available for instant download in both PDF and Word formats.
• the document that is fully tailored to your needs and not a general document;
• the template that is created by real legal professionals, and never by AI;
• the document that is suitable for usage in all Australian states and territories;
• the professional legal document that saves legal costs;
• the document that is created considering the best practices of a car hire rental in Australia.

How to customise a car rental agreement template with FasterDraft?

To get a fully customisable document, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – car rental agreement PDF or Word.
4. E-sign online (optional).
5. Make a payment.

Your printable simple car rental agreement is ready for instant download immediately after the purchase.