Lease Agreement

Internal Controls

Administrative Controls

The Lease Agreement is the formal agreement between the lessor and the lessee and must be completed for all leases.  This form should be prepared by the salesperson in triplicate.  A copy should be given to the lessee, a copy given to the accounting office to be filed in the car deal envelope and a copy given to the leasing institution.  The copies must bear both the customer’s and management’s signatures.

The lease agreement should contain suitable provisions to protect the dealership and the customer.  It should explain each party’s rights and obligations regarding early termination and default, late payment and penalties, periodic inspections and service requirements, excess mileage charges, and security deposit.