Car Rental Agreement and Policy

Vehicle Rental Agreement

This Vehicle Rental Agreement (the “Agreement”) is a legally binding contract between [M and N Car Rentals] (“Owner and the Representatives”) and [Renter’s Full Name] (“Renter”). By signing this Agreement, you acknowledge that you have read, understood, and agreed to all terms and conditions.

Please read this Agreement carefully before signing, as it outlines your responsibilities, liabilities, and important information regarding the rental. Failure to comply with the terms may result in penalties, additional charges, or legal action.


1. Vehicle Description

  • Make and Model: 2024 Chevrolet Corvette C8
  • Year: 2024
  • Vehicle Identification Number (VIN last 8 digits): [R5119890]
  • Color: White/Blue
  • License Plate Number: [DE25B71]

2. Rental Period

  • Start Date and Time: []
  • End Date and Time: []
  • Extension Policy: Any request for extension must be approved by the Owner and may incur additional charges.

3. Rental Fees and Charges

  • Full Day Rental Fee: $300
  • Mileage Allowance: 100 miles/day
  • Excess Mileage Charge: $3 per mile over the daily allowance
  • Underage Fee: A daily underage fee of $50 will be applied for renters aged 21-24.
  • Security Deposit: $1000 (to be refunded upon the vehicle's return, provided it is in acceptable condition and free from any damages or issues, maintaining the same state as at the start of the rental. 
  • Additional drivers may be added for an added cost of $50 prior to booking. The added driver must also provide valid license and full coverage insurance. 

4. Payment Terms

  • Renter agrees to pay all rental fees, taxes, and charges in full before the rental period begins.
  • Renter authorizes the Owner to charge the provided payment method for any unpaid fees, damages, or violations as described in this Agreement.

5. Security Deposit

  • A refundable security deposit of $1000 will be held by the Owner until the vehicle is returned and inspected.
  • The deposit will be refunded within [2-3 business days] after confirming no damage, excessive wear, or outstanding fees.
  • Reasons for Forfeiture: The Renter acknowledges that the deposit may be partially or fully withheld for reasons including, but not limited to:
    • Exterior Damage: Scratches, dents, any curb rash/damage to the rims/wheels, or any other physical damage to the vehicle’s exterior.
    • Interior Damage: Tears, stains, or burns on seats, upholstery, or other surfaces.
    • Odors: Lingering odors from smoking, food, or other substances.
    • Unreported Accidents: Failure to report an accident or damage during the rental period.
    • Missing Items: Loss of keys, accessories, or any other items included with the rental.
    • Excessive Cleaning: Return of the vehicle in an excessively dirty or unclean condition requiring professional cleaning.

The Renter will be provided with a detailed invoice for any charges deducted from the security deposit.

Additional Issues: The Owner reserves the right to withhold the deposit for any other damages, violations, or conditions that result in additional costs to restore the vehicle to its original state.

Costs Exceeding Deposit: If the total cost of damages, cleaning, or losses exceeds the $1000 deposit, the Renter agrees to pay the additional amount out of pocket. The Owner will provide an invoice detailing these charges, which must be paid within [3 business days] of receipt.


6. Vehicle Condition

  • A pre-rental inspection will be conducted with both parties to document the vehicle’s condition.
  • "A pre-rental inspection will be conducted and signed by both parties, documenting the vehicle’s existing condition with photos. Any damage incurred during the rental will be assessed based on professional repair estimates, and the Renter will be liable for all associated costs."
  • Renter agrees to return the vehicle in the same condition as at the start of the rental, excluding normal usage. 
  • Excessive dirt, stains, or debris may result in a cleaning fee of [a minimum of $150].

7. Insurance Requirements

  • Renter’s Insurance: The Renter must provide proof of valid personal full coverage auto insurance that includes coverage for rental vehicles. The Owner reserves the right to contact the Renter’s insurance company to verify the policy’s validity and coverage details.
  • Responsibility for Uncovered Costs: If the Renter’s insurance does not adequately cover damages, liability, or other costs, the Renter will be fully responsible for any uncovered amounts.

8. Use of Vehicle

  • Permitted Drivers: Only the Renter and additional drivers listed and approved in this Agreement may operate the vehicle.
  • Only the Renter and additional drivers listed in this Agreement may operate the vehicle. Allowing an unauthorized driver to operate the vehicle will result in forfeiture of the security deposit, immediate termination of the rental, and full liability for all damages or losses incurred
  • Prohibited Uses: The vehicle may not be used for:
    • Any illegal activities
    • Racing, off-road driving, tracking, or reckless behavior
    • Transporting goods or passengers for hire
  • Geographic Restrictions: The vehicle must remain within [Southern California].
  • Engaging in prohibited activities, including but not limited to racing, tampering with GPS or monitoring devices, or off-road driving, will result in an immediate fine and forfeiture of the security deposit. Additional damages may also apply.

9. Breakdown and Maintenance

  • The Renter is responsible for routine operating expenses, such as refueling during the rental period.
  • In the event of a breakdown, the Renter must contact the Owner immediately and follow instructions.
  • Unauthorized repairs are not reimbursable unless explicitly approved by the Owner.

10. Damage and Liability

  • The Renter is liable for any damage to the vehicle during the rental period.
  • In the event of an accident, the Renter must notify the Owner immediately.
  • Costs for repairs, deductibles, or loss of use will be charged directly to the Renter.
  • The Renter is responsible for all parking tickets, toll violations, towing charges, or impound fees incurred during the rental period. Failure to address these fees may result in additional charges deducted from the security deposit."
  • The Owner shall not be held liable for delays, cancellations, or failure to perform obligations under this Agreement due to events beyond its reasonable control, including natural disasters, strikes, or government restrictions.

Tire and Tread Wear Inspection

  • The condition and tread depth of the tires will be inspected and documented during the pre-rental and post-rental vehicle inspections.
  • The Renter agrees to use the vehicle responsibly and refrain from activities that cause excessive tire wear, such as burnouts, drifting, or other reckless driving behaviors.
  • Excessive Tire Wear: Any noticeable or abnormal tread wear inconsistent with normal use will result in charges for the cost of tire replacement or repair.
  • The Renter will be held fully responsible for any damages or costs associated with excessive tire wear or abuse.

11. Indemnity

  • Indemnity: The Renter agrees to indemnify and hold harmless the Owner, from all claims, damages, losses, or liabilities arising from:
  • The Renter’s use, operation, or possession of the vehicle.
  • Any accidents, injuries, or property damage caused during the rental period.
  • Any unauthorized or prohibited use of the vehicle.
  • Violations of traffic laws, parking tickets, toll violations, or other infractions incurred during the rental period.

Owner Not Liable for Damages: The Owner shall not be liable for:

  • Any bodily injury or property damage to the Renter, passengers, or third parties during the rental period.
  • Damage to personal belongings or valuables left in the vehicle.
  • Losses resulting from theft, fire, natural disasters, or other incidents involving the vehicle.
  • Consequential or indirect damages, including loss of time, inconvenience, or business disruptions, resulting from vehicle breakdowns, accidents, or other incidents.
  • The Owner is not liable for accidents, injuries, or damages caused by mechanical failure.
  • Renter’s Responsibility: The Renter assumes full financial responsibility for:
  • Repairs or replacement costs for any damages to the vehicle caused during the rental period, regardless of fault.
  • Any injuries or property damage caused to third parties or their property during the rental period.
  • Costs arising from any legal claims, fines, or penalties associated with the use of the vehicle.

Insurance Coverage: While the Renter’s insurance policy may provide some coverage, the Renter is ultimately responsible for any damages or losses not covered by insurance. The Renter is encouraged to verify their insurance policy coverage and, if applicable, purchase supplemental coverage offered by the Owner.

Vehicle Malfunctions: The Owner is not responsible for vehicle malfunctions or breakdowns caused by normal wear and tear or unforeseen mechanical issues during the rental period. The Renter should contact the Owner immediately in the event of a breakdown.

No Warranties: The Owner provides the vehicle “as-is” and makes no express or implied warranties regarding its condition, safety, or fitness for a particular purpose.


12. Prohibited Items and Activities

  • Smoking Prohibition:Smoking is strictly prohibited in the vehicle. Evidence of smoking, including odors, ashes, or burns, will result in the immediate forfeiture of the full security deposit. Additional cleaning or repair fees may also be charged if necessary to restore the vehicle to its original condition.
  • Pet Policy: Transporting pets is not allowed unless explicitly agreed upon. A cleaning fee of [$200] will be charged for any pet-related damage or odors. 

13. Fuel Policy 

  • Fuel Return Level: The vehicle must be returned with the same fuel level as at the start of the rental. If the vehicle is returned with less fuel, a refueling fee of [$5] per gallon will be charged.
  • Premium Fuel Requirement: The Renter is required to use premium-grade fuel (91 octane or higher) for this vehicle. Use of incorrect fuel will result in a ($100) additional fee.

14. Additional Terms

  • GPS Tracking: The vehicle is equipped with GPS tracking for security purposes. The Renter acknowledges and consents to this monitoring.
  • Late Return Fee: A $25/hour (per hour) fee will be charged for vehicles returned more than one hour past the designated return time. 
  • Personal Belongings: The Owner is not responsible for any personal belongings left in the vehicle.

15. Early Return or Late Pickup 

  • Early Return: If the vehicle is returned earlier than the scheduled end date, no refunds will be issued for unused rental days.
  • Late Pick-Up: If the vehicle is not picked up within [2 hours] of the scheduled time and isn’t approved by the owner, the reservation may be canceled. 

16. Tracking and Monitoring

  • GPS Tracking and Monitoring: The vehicle is equipped with GPS tracking for security and compliance purposes. The Owner reserves the right to monitor the vehicle’s location, driving behavior, and compliance with agreed-upon terms. Tampering with the GPS device will result in immediate termination of the rental and forfeiture of the security deposit.

Prohibited Actions: The Renter must not:

  • Remove, disable, damage, or tamper with the GPS tracker.
  • Interfere with the tracker’s functionality in any way, including blocking its signal.

Repercussions for Violation:

  • If the GPS tracker is removed, disabled, damaged, or hindered in any way, the full security deposit will be forfeited.
  • The Renter will also be held responsible for the cost of replacing or repairing the GPS tracker.

17. Privacy and Data Use 

  • Use of Personal Information: Personal information provided by the Renter will be used solely for rental purposes, including verifying identity, processing payments, and ensuring compliance with the rental agreement. The Owner will not share or sell personal data to third parties..

18. Legal Dispute Resolution

  • Arbitration Clause: Any disputes arising from this Agreement will be resolved through binding arbitration in accordance with the rules of Riverside County, California. The Renter agrees to bear all costs associated with arbitration, including filing fees, arbitrator fees, and any other related expenses, regardless of the outcome, unless otherwise required by law.
  • Governing Law: This Agreement shall be governed by the laws of the State of California.

19. Background Check Authorization

  • The Renter acknowledges and agrees that the Owner reserves the right to conduct a background check before approving the rental.
  • Purpose of Background Check: The background check may include, but is not limited to:
    • Verification of the Renter’s driving history and validity of their driver’s license.
    • Review of any past criminal activity or records related to vehicle theft, reckless driving, or DUI offenses.
    • Confirmation of the Renter’s identity and payment validity.
  • Consent to Background Check: By signing this Agreement, the Renter provides explicit consent for the Owner or its authorized agents to perform the background check as described above.
  • Rental Approval: The Owner reserves the right to deny the rental based on the results of the background check, without obligation to provide specific details regarding the decision.

20. Termination of Agreement 

  • The Owner reserves the right to terminate this Agreement and retrieve the vehicle if the Renter breaches any terms or conditions.
  • No refunds will be issued for terminated agreements.

21. Governing Law

  • This Agreement shall be governed by the laws of the State of California.

22. Signatures

By signing below, the renter acknowledges that they have read, understood, and agreed to all terms and conditions outlined in this Vehicle Rental Agreement. (Renter authorizes to have a background check performed)