Imagine you have a functional truck quite idle for some time and you have got leasing options, how do you facilitate the process? Perhaps, it is an interesting opportunity as it fetches you adequate income if the process is carried out rightly. Why are we stressing about the process? Often, people get confused between a general car lease and a truck lease.
Here comes the key document in this process – a truck lease agreement. The purpose of this legally binding contract is to detail terms and conditions to be followed by both parties to eliminate misunderstandings at a later stage.
Professional truck lease agreement templates
1. Basic contractor lease agreement
As you establish a contract with the other party in leasing your truck, there are various aspects of the agreement that you should be aware of. If you are a novice, it can become difficult in drafting the content in legal terms. This template makes it possible by drafting a detailed contractor lease agreement. All that you need to do is to change your organization name wherever appropriate.
2. Form-based truck lease agreement
If the traditional contract format sounds outdated and tough, you can make use of this template which is in the form of a form. There are various sections asking for contact information of both parties. As you enter the data, you may have to take a look at state policies and regulations to find out if they abide by your state laws. While it is encouraged to take an attorney’s assistance, it is absolutely fine to draft the initial draft as this reduces professional charges.
3. Truck lease agreement for private parties
When you are entering into an agreement with individuals or private firms, there are certain person-based specifications like insurance that you should take into consideration. Being a detailed printable template, the initial sections encourage you to enter information belonging to both parties and the contract itself. However, it is advisable to go through the entire content before both parties sign at the end of the document as this is a legally binding document.
4. Food truck lease agreement
Food truck businesses are creating a new wave in the restaurant industry. As a truck owner, you are entitled to receive high-valued rental amounts. However, the problem with this business is that the truck needs to receive a license if it is going to be stationed in one location. Like yet another notary, this template lists down the party information along with services, payment structures, policies, and conditions that should be obliged by both ends. As a truck owner, you may have to mention the lessee’s responsibility to pay dues and license charges for the place on time to avoid seizure of the truck by the local police authority.
5. Truck rental agreement
If at all you are looking at exploring rental options, you cannot use the conventional lease agreement. The terms and conditions in a rental agreement are entirely different and so are the legal definitions. As the truck owner, you should be aware of your state laws relating to truck rents before you set prices and rental period. If you are looking at converting to a leasing facility later, you should look at feasibility and professional fees.
NEVER USE the same agreement!
6. Trucking commitment
This template is just a list of terms and conditions to demonstrate the commitment between both parties. Though it is not a detailed one, it is worth using this template to commence the deal.
7. Truck lease agreement with insurance coverage
Not every template covers insurance options and responsibilities in detail! However, this template does! Before you draft the agreement, ensure going through the insurance laws and policies detailed in this template so you save more in leasing your truck.
8. Truck lease agreement example
Although several templates are mentioned below, it is always good to start by taking a look at an example. Here you go with an example of a lease agreement between the truck owner and food truck business owner.
9. Master truck rental agreement
This is yet another template that allows you to obtain comprehensive information about conditions in the truck rental agreement. Download, enter data, append your business logo, and then take it to your attorney for a consultation.
What is a truck lease agreement?
A truck lease agreement is an agreement detailing the lessor’s and lessee’s information along with the period until which terms and conditions will have to be abided by. One agreement cannot be applicable to all orders. You may have to customize the agreement based on your state policies. Every business owner that has begun leasing trucks with proper documentation has experienced the convenience and adequate returns.
Of course, each one of us wanted to earn that extra buck to expand the fleet, isn’t it? Truck leasing is a lucrative business as it is not only used for transporting materials but also for setting up businesses. New trends in the food industry have created the need for a food truck that is mobile. As a truck owner, you can expect significant returns from this type of leasing. The agreement you create for a food truck needs to highlight licenses available at your end and those to be purchased by the other party.
Most importantly, a truck lease agreement gives an understanding of insurance policies along with terms to maintain the fleet regularly. The other party makes a decision on the type of truck based on aspects like mileage, insurance, routine maintenance, and fuel.
Why truck leasing?
Truck leasing is a lot different when compared to other types of leasing. It offers several advantages to the owner as well as other parties involved.
- Fleet ownership is a business that does not depreciate to a great extent over time. With the leasing option explored, it eliminates expenses related to license, towing, tax, washing, fuel, and substitute vehicles.
- Alternatively, leasing a truck simplifies maintenance and eliminates repair costs. When you own a truck, you may have to bear overheads. However, a full-service lease allows the other party to pay for repairs and maintenance each month.
- Leasing is not a depreciating asset. Hence, you can always lease at low risk and ensure healthy cash flow in your business.
Common mistakes to avoid in the truck lease agreement
When you lease a truck, there are commonly committed mistakes of truck owners in the past that you should be aware of.
- Identify the type of use. Commercial leases have different tax slabs.
- Never omit calculation of debt ratio and monthly payment as these can influence your potential in repaying debts and maintaining asset portfolio.
- Make it a point to inform the mileage along with insurance specifications. Sometimes, the other party might request a foreclosure due to poor mileage and this can affect your business reputation.
- Never miss mentioning state laws that govern the contract between both parties. The federal law prioritizes odometer reading as a variable to be included in the agreement.
- If there are exclusive deals that you are offering, you may have to list down hidden charges in the agreement so that it does not provoke misunderstandings.
Food trucks, mini house trucks, and travel trucks are becoming popular. If you are having a fleet of trucks idle or less used, it is high time that you explore the lease option and find the right lessee for your truck. For a hassle-free process, you may have to use some of the templates listed in the article to protect your truck and brand on the whole from any losses.