Vehicle Sublease Agreement Template

Company: [Sublessor.Company]​

Address:[Sublessor.StreetAddress][Sublessor.City][Sublessor.State][Sublessor.PostalCode]​

Parties and Agreement

This Vehicle Sublease Agreement is entered into on the (Date) by and between [Sublessor.FirstName][Sublessor.LastName] (“Sublessor”), located at [Sublessor.StreetAddress][Sublessor.City][Sublessor.State][Sublessor.PostalCode] and [Sublessee.FirstName][Sublessee.LastName] (“Sublessee”), located at [Sublessee.StreetAddress][Sublessee.City][Sublessee.State][Sublessee.PostalCode]. The Sublessor hereby subleases the following Vehicle to the Sublessee for the duration specified and upon all conditions set forth in this agreement:

Henceforth, this above Vehicle will be referred to as “Vehicle” in this agreement.

Sublease Terms

The Sublessee and Sublessor agree to follow all the terms laid forth below.

Rental Payment

The Sublessee agrees to pay a daily/weekly/monthly/annual amount of $(Amount) to rent the Vehicle from the Sublessor. This rental amount is payable on the 1st of each month. It is the sole responsibility of the Sublessee to ensure the Sublessor receives the payment by the 1st.

Should the Sublessor not receive payment by the 5th of each month, they are entitled to charge interest of (Percentage)%/a late fee of $(Amount) on the existing outstanding balance.

Duration

The agreement will commence on the (Start.Date) and operate on a flexible/fixed term, ending on (End.Date), unless both parties agree to renew the contract or when both parties agree to terminate the contract.

Sublessor Obligations

Sublessor is the Lessee of the Vehicle by virtue of a lease (“Master Lease”), a copy of which is attached to this Sublease, and wherein (Owner.Name) is the Lessor (“Master Lessor”).

The Sublessor has the responsibility to ensure this sublease agreement is valid within the terms of the Master Lease. It is the sole responsibility of the Sublessor to ensure the Master Lessor is aware and approves of this sublease agreement.

Should the Master Lessor not be made aware and approve of this Sublease, no penalties shall befall the Sublessee upon the termination of this agreement. Any penalties Master Lessor imposes in this case will be the sole responsibility of the Sublessor.

At all times, the Sublease is subject and subordinate to the Master Lease. The terms, conditions, and responsibilities of the Master Lease shall be the terms, conditions, and responsibilities of the Sublease, except where the Sublease provisions directly contradict the Master Lease. Then, the Sublease shall control the Master Lease.

The Sublessor will ensure the Master Lessor comprehensively insures the Vehicle with a reputable insurance company for the duration of this Sublease. The Sublessor is responsible for ensuring all standard repairs, maintenance, and services are carried out by the Master Lessor in a timely manner. The Sublessor is also responsible for organizing an interim vehicle of similar make and model for the Sublessee while the Vehicle is indisposed during standard maintenance repairs and other services.

It is the responsibility of the Sublessor to provide the Sublessee with a copy of the registration book of the Vehicle. Further, the Sublessor must provide the Sublessee with the option to replace the Vehicle with another one (1) month/year from the date of signing this agreement.

Sublessee Obligations

The Sublessee agrees to the following obligations for the duration of this Sublease:

• To use the Vehicle skillfully and properly, and ensure only persons with a valid driving permit use the Vehicle;

• To make no alterations to the Vehicle without the prior written consent of the Sublessor, or to remove any Vehicle components unless it is immediately replaced by the same component or one of the same model and make, or an advanced model of the same make;

• To report within 48 (forty-eight) hours any damages or loss of the Vehicle to the nearest police and the Sublessor;

• To carry the responsibility for any expenses related to fuel, oil topping, tire puncture, parking costs, and fines for illegal parking;

• To only use the Vehicle within (State)/the United States of America;

• To return the Vehicle in good mechanical condition to the Sublessor within (Number) days of the Sublease terminating, save for the standard wear and tear expected on the Vehicle.

Termination of Agreement

The Sublessee and Sublessor can terminate this agreement at any time by giving the other Party 1 (one) month’s notice in writing. At the time of termination, the Sublessor will refund any rental fees paid in advance within 30 (thirty) days.

Assignment and Change in Lease

The Sublessor will immediately notify the Sublessee of any changes to the Master Lease or its eligibility. The Lessee agrees not to sublet or assign this Sublease to another party without prior written permission from the Sublessor.

Miscellaneous

Force Majeure

Neither Party can be held liable if they fail to perform any obligations set forth in this Sublease if they are prevented from doing so by reason of force majeure.

Notices

Any notice must be sent in writing to the other Party and is sufficiently served if it is sent by registered post to the following addresses:

Sublessor:[Sublessor.StreetAddress][Sublessor.City][Sublessor.State][Sublessor.PostalCode]​

Sublessee:[Sublessee.StreetAddress][Sublessee.City][Sublessee.State][Sublessee.PostalCode]​

Dispute

Any dispute arising from this Sublease shall be determined by a court of competent jurisdiction in [Sublessor.State]​. Upon agreement of all the involved Parties, it can be submitted for arbitration.

Agreement

This Vehicle Sublease Agreement is governed by (State) and shall, in all respects, be construed in accordance with the laws of (State). Any amendment to this agreement must be made in writing and signed by both Parties.

IN WITNESS WHEREOF, the Parties execute this agreement on the date below and, by signing it, acknowledge their understanding and agreement to the terms contained herein.