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Borrowed Vehicle Agreement

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Agreement to Loan Automobile to University Athletic Department for Promotional Purposes

Agreement made on the (date), between

, a nonprofit corporation organized and existing under the laws of the state of , with its principal office located at

referred to herein as University, and , a corporation organized and existing under the laws of the state of , with its principal office located at

referred to herein as Dealer.

In the interest of advancing and promoting the intercollegiate athletics program at the , Dealer has offered to loan the following vehicle(s) to the Athletic Department of University:

Make & Year of Automobile: (Describe)

Vehicle Identification Number: (Describe)

License Plate Number: (Describe)

Dealer's Address: (Describe)

I. University agrees to:

A. Subject to the limitations stated below, assume responsibility for the care, custody, and control of the vehicle.

B. Maintain insurance on the vehicle, naming Dealer as an additional insured, with combined liability of $500,000 per accident. University will assume responsibility for all deductibles.

C. Pay the costs of gasoline, oil, lubrication, and washing of vehicle.

D. List Dealer or Dealer's designees as registered titleholder and legal owner of the vehicle.

E. Provide () premium season tickets to all University home football and men's basketball games during the seasons. Tickets will be mailed in advance of first home game of each sport.

F. Provide () premium season tickets to all University home baseball games during the season. Tickets will be mailed in advance of first home game(s), which is to be determined.

G. Provide () season tickets to all other University athletic competitions upon request.

H. Provide minimum of one (1) message board announcements at all home football, men's basketball and baseball games recognizing support of Dealer.

I. Provide space for logo recognition of Dealer’s support in official football and men's basketball souvenir programs. Artwork for football program is due no later than .

J. Provide minimum of two (2) vehicle display opportunities at a University home baseball game per season recognizing Dealer’s support. Displays include up to three (3) vehicles, one-hundred (100) general admission game tickets for Dealer's use at the game and special presentation during the game.

II. Stipulations:

A. The vehicle is under manufacturer's warranty. It is agreed that vehicle will be serviced exclusively at Dealer's repair facility except in the case of an emergency on the road, at which time the vehicle will be taken to an authorized dealer of the same make unless this provision is waived in writing by Dealer.

B. University does not assume responsibility for the cost of normal wear and tear and depreciation. The vehicle will be returned to Dealer in the condition it was received, less normal wear and tear.

C. In the instance in which there is extraordinary wear on the vehicle that exceeds what may be established as normal wear and tear, University shall compensate Dealer for the vehicle's loss value attributable to such excessive wear. Should there be a disagreement between University and Dealer as to this amount, there shall be an appraisal made by an independent qualified appraiser, jointly approved by the parties.

D. This vehicle will primarily be used by . The car may also be utilized by other authorized members of the University’s Athletic Department for official activities.

E. Dealer may request return of the vehicle at any time. Written confirmation of the termination of this Agreement must be made 15 days prior to the required return of the vehicle. Notices of termination must be sent to the Director of Athletics, at

This Agreement is to be administered on behalf of University by the Director of Athletics or his designee. No other individuals are authorized to amend, modify, or waive the terms of the Agreement. All amendments, modifications, or other changes to this Agreement must be in writing signed by both parties to be effective.

F. The University is, for purposes of tax treatment under the Internal Revenue Code, a tax-exempt non-profit educationally related governmental entity.

G. Dealer may receive a membership in with all the rights and privileges therein as consideration for the loan of the vehicle described herein.

H. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

I. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

J. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

K. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

L. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

M. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.

By:

By:

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What a Borrowed Vehicle Agreement Is and When it’s Used

A Borrowed Vehicle Agreement is a written contract documenting the temporary transfer of use of a motor vehicle from the owner (lender) to another party (borrower). It defines the vehicle, the permitted use, the loan period, insurance and liability responsibilities, condition and mileage expectations, any fees or deposits, and return terms. The agreement reduces disputes by documenting inspection findings, required insurance coverage, permitted drivers, and immediate reporting obligations for damage or accidents. It is commonly used for short-term personal loans, employer fleet lending, and between private parties.

Why documenting vehicle loans matters

A clear Borrowed Vehicle Agreement protects both parties by allocating liability, confirming insurance coverage, and setting return expectations. It also creates a written record that can be enforced if damage, third-party claims, or insurance disputes arise and supports proper evidence retention for tax or corporate records under ESIGN and UETA frameworks.

Why documenting vehicle loans matters

Who commonly uses a Borrowed Vehicle Agreement

Typical users range from private owners to businesses managing fleet vehicles.

  • Private owners lending a car to family or friends for defined periods and purposes.
  • Employers or fleet managers loaning vehicles to employees for business or temporary personal use.
  • Rental intermediaries or dealers providing demonstration vehicles with limited-use conditions and return expectations.

The agreement scales from simple private templates to detailed company forms used by HR and fleet operations.

Who has authority to sign this agreement

Vehicle Owner — Lender

The registered owner or an authorized agent signs as lender. If a business owns the vehicle, an officer or authorized fleet manager should sign and include title to confirm authority and avoid later third-party challenges.

Primary Borrower — Driver

The individual accepting temporary custody signs as borrower. If multiple drivers are permitted, each additional driver should sign or be listed and provide ID and insurance details as required by the lender.

Essential information every agreement should record

Vehicle ID: VIN, year, make, model
Registration: License plate and state
Lender Details: Owner name and contact
Borrower Details: Driver name and contact
Insurance Proof: Carrier name and policy number
Signatures: Signed and dated by parties

Key risks and potential legal consequences

Civil Liability: Damages may be claimed
Insurance Denial: Policy gaps can leave unpaid costs
Contract Dispute: Ambiguities invite litigation
Criminal Exposure: Unauthorized use may trigger charges
Reimbursement Claims: Borrower may owe repair costs
Void Agreement: Incomplete form may be unenforceable

Common mistakes to avoid when preparing the agreement

  • Failing to verify and record valid insurance coverage, which can result in personal exposure if a claim is denied by an insurer.
  • Not documenting the vehicle condition and mileage at handover, producing disputes about preexisting damage versus new damage.
  • Allowing unauthorized drivers or uses without specification, increasing the risk of insurer refusal or liability gaps.
  • Using vague timing terms like 'return when convenient' instead of concrete return dates and late-return remedies.

How to complete a Borrowed Vehicle Agreement—step by step

Follow these practical steps to create a clear, enforceable agreement that reduces disputes and clarifies responsibility for accidents, damage, and return.

  • 01
    Identify parties: Enter full legal names and contact details
  • 02
    Describe vehicle: Record VIN, plate, make, model, and odometer reading
  • 03
    Define terms: Specify purpose, duration, fees, and permitted drivers
  • 04
    Sign and date: All authorized parties sign and date the document

Typical processing flow when you use an electronic template

A streamlined online workflow reduces friction and ensures each signer receives the correct fields in order.

  • Upload document: Add a template or import a Word or PDF file
  • Place fields: Drag signature, date, and conditional fields into place
  • Add signers: Enter email addresses and set signing order
  • Send for signature: Platform emails or shares a signing link

Core components to include in a professional agreement

A complete agreement combines identity, vehicle detail, insurance, and operational rules so obligations and remedies are clear to all parties.

Parties

Full legal names, business titles if applicable, and contact information for owner and borrower.

Vehicle Description

VIN, plate, make, model, color, current odometer reading and any special equipment or restrictions.

Term and Use

Exact start and end dates, permitted use, geographic limits, and names of authorized additional drivers.

Insurance and Liability

Required minimum coverage levels, proof of insurance, primary vs. secondary coverage, and named insureds.

Condition & Return

Initial inspection checklist, fuel/mileage expectations, repair responsibilities, and return procedures.

Fees & Deposits

Security deposit amount, daily late fees, reimbursement process for damage and unpaid fines.

Formats and exports to keep with your agreement

After signature, retain copies in standard formats that preserve the audit trail and are easy to share with insurers or legal counsel.

Signed PDF

Export a PDF that includes an audit trail showing timestamps, signer IPs, and actions for recordkeeping and evidentiary use in claims.

Editable Word DOCX

Keep an editable copy for future amendments or adaptation to new borrowers while preserving the signed PDF for the executed terms.

PDF/A Archive

Store a PDF/A version for long-term archival compliance; many systems create a tamper-evident file for retention purposes.

CSV or Spreadsheet

Export signer and metadata to CSV for fleet tracking, compliance reporting, or integration with fleet management systems.

Practical tips for an enforceable agreement

Small drafting choices make big differences. These recommendations reduce ambiguity and strengthen enforceability.

Use full legal names consistently
Always mirror names as they appear on ID and registration; mismatches complicate insurance claims and can undermine contract enforcement.
Set clear insurance requirements
Require proof of active coverage with minimum limits; specify whether lender is an additional insured to avoid coverage disputes.
Document condition thoroughly
Photograph and list existing damage and odometer reading at handover; attach the checklist to the agreement to avoid contested repairs.
Include return and breach remedies
Specify late fees, towing or repossession authorization only if legally permitted, and reimbursement procedures for repair and impound charges.

Real-world examples of how parties use this agreement

These scenarios show common adaptations for private and business lending of vehicles.

Private loan example

A homeowner lends a car to a relative for three weeks, documents VIN and odometer reading, and requires the borrower to show insurance

  • The borrower provides current policy and signs a damages indemnity clause
  • The written record resolved a later repair dispute by showing preexisting damage and the agreed reimbursement method.

Employer fleet example

A company lends a demo vehicle to a sales rep for client visits, tracks permitted drivers and mileage caps

  • The employer requires commercial insurance and monthly mileage logs
  • The agreement allowed quick processing of an accident claim and clarified primary insurer responsibility.

How to configure an online borrowing workflow

Set up fields and signer rules to match your operational steps and compliance needs when using an electronic template.

Field Configuration
Signers Owner first, borrower second; optional witness fields
Authentication Email or SMS code; add ID check if required
Reminders Automatic reminders at 48 and 24 hours before return
Archive Save signed PDF and export metadata to records

Technical considerations for e-signature and storage

Confirm your digital platform supports required authentication and export formats before sending for signature.

  • File types: PDF, DOCX, and HTML supported
  • Integrations: Works with CRM and cloud storage platforms
  • Security: TLS in transit and AES-256 at rest

Choose settings that preserve audit trails, allow conditional fields for optional drivers, and retain signed copies in a secure archive.

Time-sensitive dates to include and monitor

Specify deadlines that affect liability, coverage, and recovery to avoid disputes and insurance gaps.

Effective Date:

Exact start date of the loan

Return Date:

Agreed date/time for vehicle return

Insurance Proof Due:

Before handover or immediately upon request

Damage Reporting Window:

Report accidents within 48 hours

Dispute Notice Period:

Specify period to contest charges

Key stages from request to return

Typical milestone sequence for a single borrowing event, shown as stages you can map to reminders and approvals.

01

Request Submitted

Borrower provides ID, insurance, and intended dates

02

Approval and Verification

Owner or fleet manager verifies insurance and identity

03

Handover and Inspection

Parties document condition and mileage at transfer

04

Return and Reconciliation

Final check, record returned mileage, and settle fees

How a Borrowed Vehicle Agreement differs from a vehicle lease

Compare core characteristics so you can choose the right document type for the transaction.

Criteria Borrowed Vehicle Agreement Vehicle Lease
Typical Use short-term no-transfer long-term rental
Duration days to months months to years
Ownership no transfer no transfer (renter pays rent)
Registration Changes no transfer may require registration terms

eSignature vendor comparison for signing Borrowed Vehicle Agreements

Below is a concise vendor comparison focused on price and core signing features relevant to this agreement type. Do NOT include or reference data timestamps in this summary.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently asked questions about Borrowed Vehicle Agreements

Answers to common practical and legal questions when preparing, signing, and storing a Borrowed Vehicle Agreement.


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