Looking to "rent" out my spare car

[TheRealTimHorton]

So long story short, I am looking to rent out my spare car to a co-worker who is in dire need. It's a beater so I'm not worried about him damaging it anymore than it already is.

With that said, he has agreed to pay $0.18/km and he will put his insurance on it. I want to protect myself and keep the registration under my name, if possible. Otherwise I would resort to a document disclosing all information and some witness signatures and stuff.

Am I on the right track here? Or does anyone have any experience with this type of thing. Who should I be talking to?

[FraserB]

why not just sell it to him for $1, keep track of the mileage and when he is done he sells it back to you for $1 and then pays you the mileage?

[adidas]

Originally posted by FraserB
why not just sell it to him for $1, keep track of the mileage and when he is done he sells it back to you for $1 and then pays you the mileage?

Thats exactly what he wants to avoid.

Said co-worker gets car for $1, and never sells it back to him. lol

[Mar]

Saw this on Judge Mathis too many times. You're going to have 15 parking / speeding tickets within 6 months.

[FraserB]

Originally posted by adidas


Thats exactly what he wants to avoid.

Said co-worker gets car for $1, and never sells it back to him. lol

Write up a contract then. Have it required to be sold back at the end of x months or you get x dollars.

[tom_9109]

Its called a lease agreement. Get one.

[Masked Bandit]

For all intents & purposes you can't insure something you don't own which means if buddy is going to insure it then buddy has to register it as well.

Why not write up two bills of sale at the start, one from you to buddy and then anothter from buddy to you. The second bill of sale has no date on it and remains in your possession. Make sure buddy pays you once a week or once a month to ensure they don't rack up too much of a debt and then if things go sideways at any point you simply insert the date on the second bill of sale and repo the car.

[kvg]

Sounds like a very bad idea

[heavyfuel]

Originally posted by adidas


Thats exactly what he wants to avoid.

Said co-worker gets car for $1, and never sells it back to him. lol

Originally posted by FraserB


Write up a contract then. Have it required to be sold back at the end of x months or you get x dollars.

Doesn't even need to be that complicated. I mean, sure for the mileage a contract could/would be a good idea, as far as the car goes just draw up a bill of sale, sign it and all, just leave the date blank.

But all in all it's a bad idea.

[kamakurakid]

Bad idea in so many ways, I cannot think of one upside to the huge risk. Just tell him the deal is not going to happen, the transmission needs an overhaul and you do not want the risk of damaging it further until it is repaired. Or simply just give him the car for free and be done with it, sounds like you do not need it.

You are doing this for the money, nice-guy complex, job prospects... which of these?

[bighead2267]

Originally posted by Masked Bandit
For all intents & purposes you can't insure something you don't own which means if buddy is going to insure it then buddy has to register it as well.

Why not write up two bills of sale at the start, one from you to buddy and then anothter from buddy to you. The second bill of sale has no date on it and remains in your possession. Make sure buddy pays you once a week or once a month to ensure they don't rack up too much of a debt and then if things go sideways at any point you simply insert the date on the second bill of sale and repo the car.

+1 but the ownership and insurance concern. any chances you can sell the vehicle to him with agreed deposit(to cover your back not returning and damage while usage) and return the deposit once the car sold it back to you minus the rental?

[Rat Fink]

.

[AE92_TreunoSC]

Never ever. Big fucking mistake.

You're better off giving them the car and saving yourself the headache.

[spikerS]

well, all that above posted being said, and since i read your first post, here is what I say.

Do as masked bandit says. Draw up the 2 different bill of sales, one to your co-worker, the other back to you.

As you said, the vehicle is a beater, so you don't care much about the damage side of things. And since we don't know the situation of the co-worker, and it is beyond, they like to assume this person is a dead beat low life bum, and they might be, but we don't know. The fact you are considering doing this says to me that you believe they are a good person, and are in fact in need of it. The only thing that says to me you are trying to make a buck off it is $0.18/km. I would have had it a lot lower if I was trying to do something nice for someone in dire need.

but as said, the person you are lending it to, can not insure it under their name if the registration remains under your name, you can not insure property that you do not own.

having said all that, Kudos to you for trying and offering to help. people like us are few and far between. We know we may get burned occasionally, but more often than not, we can make other's lives that much easier by doing very little.

[TheRealTimHorton]

Thanks everyone for all of your comments and concerns.

I am going ahead with the lending of the vehicle despite much of the negative commentary, but I will be using the attached document to help protect myself. I understand I am not a lawyer and a better document could be drafted, but it is only a beater and if he messes up/with anyone using the vehicle then it will be registered and insured under his name.

Thanks guys

Car Lease Contract

This Agreement is made and entered in this ____ day of _________________, 20___, between ______________________, of __________________________________, hereinafter called "Owner", and _____________________, of _____________________hereinafter called "Client".

Vehicle
The vehicle which the Owner hereby agrees to lease is:
_____________ __________________ ______________
_____________ ___________________ _____________ hereinafter called “the vehicle” and/or “vehicle”
Mileage at beginning of lease period: _______________

The Owner represents that to the best of his knowledge and belief that said vehicle is in sound and safe condition and free of any known faults or defects which would affect its safe operation under normal use.

Lease Period
The Owner agrees to lease the above-described vehicle to the Client for a period of______________ beginning at _______ on ________________ and ending at _______ on _____________________.

The Client agrees (a) that the leased vehicle shall not be used to carry passengers or property for hire; (b) that the leased vehicle shall not be used to carry passengers other than in the interior or cab of the vehicle; (c) that the leased vehicle shall not be used to carry passengers in excess of the capacity thereof; (d) not to use the vehicle to push, propel or tow another vehicle, trailer or any other thing without the written permission of the owner; (e) not to use the vehicle for any race or competition; (f) not to use the vehicle for ANY illegal purpose; (g) not to operate the vehicle in an illegal and/or negligent manner; (h) not to permit the vehicle to be operated by any other person without the written permission of the owner; and (i) not to carry passengers, property or materials in excess of the rated weight carrying capacity of the vehicle.

Insurance
The Client hereby agrees that he/she shall personally take responsibility for fully insuring the vehicle
with the minimum roadworthy legal coverage of $1,000,000 Liability; any insurance beyond the minimum roadworthy legal coverage is at the sole discretion of the Client. The Client assumes full responsibility and accountability of any and all damages caused to/and by the vehicle in the event of any third party legal suit and/or other form of pursuant seeking compensation and the Owner shall be financially compensated for losses and/or damages related to the vehicle accordingly.

Lease Rate
The Client hereby agrees to pay the Owner at the rate of _______ per ________ every 30 days (early payment will be accepted) via E-mail transfer, cash, cheque or money order for the use of said vehicle. All fuel used shall be paid for by the Client. The Owner will check the mileage on the vehicle to ensure correct mileage and compensation paid. Late payment beyond 30 day period will be charged at $5 per day.

Temporary Transfer of Ownership/Registration
For ease of Insurance purposes: The Owner agrees to transfer ownership and registration of the vehicle temporarily to the Client via Bill of Sale with the intention of easing issues that may arise during the insuring of the vehicle. The temporary transfer of ownership via Bill of Sale will commence on the same date as the above Lease Period. At the end of the Lease period described above, this process shall be reversed and the Client will transfer ownership and registration of the vehicle to the Owner via Bill of Sale. The Client may NOT at any time transfer ownership and registration of the vehicle to any third party. This lease agreement will overrule any special conditions and/or terms stated on both Bill of Sales.

The Client hereby agrees to return said vehicle to the Owner at
______________________ no later than _________ on __________________ (24 hours after lease period has ended).

IN WITNESS WHEREOF, the parties hereto hereby execute this
Agreement on the date first above written.

______________________________ ____________
Witness Date

______________________________ ____________
Owner Date

______________________________ ____________
Client Date

[KandabashiDevil]

Originally posted by AE92_TreunoSC
Never ever. Big fucking mistake.

Originally posted by TheRealTimHorton
I am going ahead with the lending of the vehicle despite much of the negative commentary ...

Can you please post up the outcome of your situation?

Originally posted by Mar
Saw this on Judge Mathis too many times. You're going to have 15 parking / speeding tickets within 6 months.

[winson2001]

i was thinking.. if hes not good enuff of a buddy for you to trust for few hundred bucks a month, then u shouldnt do any deals with, if hes a good enuff of a buddy, why bother with 18cent/km just lend him ur car till he can buy it off at a buddy price or till he can afford a $500 beater somewhere.... if he cant make $500 to buy a beater in a few months, then he prolly shouldn't be driving..... even if this buddy has special reasons that he cant spare the $500 in a few months and he really do needed the car... as a good buddy, I'd lend him the car for as long as he needs it or till i need the beater back.

on the other hand If i was the one who needed to borrow/lease a car from buddy, n he asks me to sign a contract of any sort... I'd prolly feel insulted.

[Tilly]

As Mar stated above, perhaps insert a clause into the contract whereby the lease(ee) takes care of all parking/speeding tickets and related matter.

[spikerS]

no added clause needed, as the co-worker will insure it and register it in their own name. any photo tickets or parking tickets will be his. they don't follow the car's VIN, and will not be the responsibility of the OPs

[trieu]

$0.18/km seems pretty greedy to me if you're lending it out to a friend.