A truck lease agreement and rental agreement are contractual documents that specify the conditions for which customers can rent trucks from a particular company. Most people have dealt with these types of documents at one time or another during their lives for renting equipment or apartments so it’s no secret that deciphering them can be a complicated matter, to say the least.
The first thing to understand is there’s a distinct difference between renting and leasing. Both terms cover a person’s right to use a vehicle that’s owned by another party. However, there are financial and commitment differences between the two, as well as various expectations of usage. Truck rentals are considered mostly for moves and the trucks are used for a shorter period of time. Leases, on the other hand, usually involve the use of vehicles and property for a longer term commitment. In these cases, customers are interested in leasing trucks for commercial or personal use. In any event, this article will provide tips and advice on how to understand a truck lease agreement and rental agreement so the best deals can be made for the most reasonable costs possible.
What to Think About First
There are several items to consider when contemplating truck rentals and leases. Customers must be clear about what they’re looking for and understand what the truck rental companies are offering. For example:
- Are you looking to rent a truck to complete a move or is there a need for using a truck for a period of time?
- If a move will be done, is this a local move or a one-way move?
- Is the truck company willing to take the time to sit down with the customer and explain in detail what they offer and what you can expect?
- Does the company offer a variety of trucks in various sizes?
- What does a truck lease agreement and truck rental agreement actually state?
Tip #1: Truck Lease Agreement or Truck Rental Agreement?
When moving, people are more likely to consider a truck rental agreement because they’ll only need to use the truck for a short period of time to complete their move. Therefore, they’d check for the moving companies offering rentals for the best rate. Businesses, however, may be interested in leasing trucks for a period of time. This is done usually to replace their own trucks that might be temporarily out of commission or until their own fleet of trucks can be obtained. In this case, a truck lease agreement is a more appropriate option. Numerous truck lease agreements can be found online; the Sample forms website provides a clear example.
Tip #2: Local or One-Way Moves
There’s a large difference between renting a truck for a local move and renting for a one-way move. Local moves consist of picking up from and returning a truck to the same rental location. One-way moves are when the truck will be picked up at one location and returned to another. This is a convenient setup for those who are moving a substantial distance away and it would be inconvenient, costly and time consuming to have to return the truck to its original location.
Tip # 3: Dealing with the Trucking Company
Renting and leasing trucks can be a complicated procedure and handing a person an agreement document and expecting them to automatically understand all the terms and conditions stated doesn’t convey sound business practices. Thus, it’s best to choose a company that will take the time to go over the agreements and fully explain to the potential customers what they need to know while answering any questions they may have.
Tip # 4: Does the Company Offer a Variety of Trucks
When checking trucking companies, you’ll want to know there are a variety of trucks to choose from as this will make choosing the final truck a lot easier. From straight trucks and vans for short-term rental use to trailers, sleeper and day cab tractors for long-term leasing, you’ll want to know that the company you choose has this assortment and in ample supply so there’s no concern about whether your truck will be available when needed.
Tip # 5: The Actual Truck Rental and Lease Agreements
Generally, these documents will consist of the following:
- Identification of the “lessor”, the company doing the renting or leasing, and the “lessee”, the customer who will be renting or leasing the truck.
- The complete description of the vehicle.
- For leasing, you will use the set period of time the truck; for example, 6- or 12- month lease.
- Itemized listing of all rates and charges.
- Explanation of all rates and charges and the terms and conditions for payment.
- Whether renting or leasing, the agreement should stipulate facts that cover insurance requirements. When renting, customers may settle with the insurance provided by the company. However, when leasing, customers may want to obtain additional coverage for specific reasons.
- Vehicle maintenance and operating costs: who’s responsible for what.
- When leasing, applying late payments and early termination fees.
- Conditions for vehicle return and customer’s responsibility for any and all damages and/or destruction of the truck.
- Terms of default on agreements and what the company can do when default occurs.
- Specifications noting that when leasing, the lessee has no right to assign or sublease the agreement to any other parties.
- Also when leasing, you may find an option to purchase the truck at the end of the lease term. In this case, they should list the purchase price.
- Section for signatures and dating of documents.
As it is with any and all types of agreements, there is an important purpose at stake. Entering into an agreement means explaining the responsibilities and protecting the rights of all parties involved. Obviously, each company will have composed an agreement that’s specific to their business practices and concerns. Thus, there will be various differences from one truck lease agreement from another. In any case, the company must properly explain the terms and conditions to the customer. Then, the customer fully understands all aspects of the agreement. Consequently, there’s less of a chance of either finding themselves involved in messy disputes leading to lengthy litigations.
Images sources: depositphotos.com