Loan for Use Agreement Car

Loan for Use Agreement Car – for private car owners

With the arrival of Snappcar the concept of car sharing became booming. Nevertheless it is still a matter of car hire between two private individuals. It is also possible to lend out your car without using a sharing platform. With this Car Loan for Use Agreement you can lend out or share your car with others for a certain period of time, without charging a fee. There is no rental fee involved; the user is charged for each kilometre driven to cover the costs.

In view of the value of the car it is important to set out the arrangement in a contract. The contract includes arrangements about the duration and the car insurance. You only have to buy our model contract once and then you can use it without limitation.

What to fill in yourself

Please fill in the details of the borrower, the duration, the car and the arrangements about the costs.

Summary

Contains provisions on:

• Description of the car;
• Duration of the loan for use;
• Apportionment of costs, for instance for fuel, taxes, MOT test and maintenance;
• Distribution of risks, such as damage and no-claims bonus;
• Liability for traffic fines.

Context

This document can be used in the following situation:
When sharing a car there are some legal matters to consider. The owner of the car is responsible for the MOT test and for road tax. Another important aspect is the matter of car insurance. In principle the insurer covers the damage when a third person is driving the car, however filing a claim will affect the level of insurance excess. After making a claim on the insurance the amount of premium you will have to pay may increase significantly. What are the options for this situation?

If you did not take out a motor insurance with a fully comprehensive cover any possible damage falls on you as the owner. This loan for use agreement sets out who will bear the costs if something goes wrong.

What is a loan for use agreement car?

Loan for use does not involve any consideration with the exception of a fee for variable costs such as fuel. The relationship between the owner of the car and the borrower is provided for in a loan for use agreement. It includes arrangements about compensation per driven kilometre, damage and traffic fines.

When do you need a loan for use agreement?

There are many situations when someone else might be using your car. And even though you might know someone very well it is still advisable to draw up a contract. The person whose name is on the registration certificate is the owner of the car. Without additional arrangements this is the person who is responsible for paying taxes, maintenance, damage and traffic fines.

If you intend to lend out your car without a fixed compensation, it is also important to make good arrangements. Without an agreement it is not clear what the arrangements are and when something goes wrong you need to know your rights and obligations. To conclude: You can also rent out your car by using this car rental agreement.