If you share a car with someone, you should have a written agreement.You need an agreement if you only own the car.Before drafting the agreement, you should sit down and talk about when you will need to use the car and how you anticipate expenses being shared.Car-sharing agreements should be treated like a contract.Make sure to sign it and keep a copy.
Step 1: The document's title should be stated.
The title should be bold and centered in the middle of the page.It is important to use a style that is readable.The New Roman 12 point is fairly standard.
Step 2: Open with music.
The agreement begins when you identify the parties and say you have an agreement.You can write, "This agreement is between Jane Smith and Michael Jones, who agree to the following."
Step 3: The car should be identified.
You need to identify the car by model and year.If you own the car together, then state that you agree to share the ownership and use of the 2012 Chevrolet Malibu.
Step 4: Explain when title is moved.
Explain when title will be transferred into both owners' names if you don't already share ownership.You don't need this section if you are only sharing the car.Within two weeks of signing this agreement, Jane will transfer title to the car from her name to both names, 'Jane Smith and Michael Jones, as tenants in common.'If you own a car that is in common with another person, they will need to sign in order to sell it.If one of you dies, the other person won't get their share of the car.Whoever is named in a will or heir will inherit that share.If you own the car in a joint tenancy, the other person's share will pass to you at death.If you write "Jane will transfer title to the car from her name to both names, 'Jane Smith and Michael Jones'", you can create a joint tenancy.
Step 5: Tell me how much you paid for a share.
Explain how much you paid in exchange for a share of the car.Look up the make and model of the vehicle on the Kelley Blue Book website to properly value the car.You can say, "In consideration for a 50% ownership in the car, Michael will pay Jane $6,500, which we agree is half of the Blue Book value."
Step 6: The property should be identified as separate.
You probably don't own everything inside the car with each other.One person might pay for things like a snow shovel.You need to know who owns the separate property in the car-sharing agreement.If one of you buys something for the car, it will remain the property of whoever bought it, as long as the agreement has been made.
Step 7: Do you know where to park the car?
The owner will know where to get the car if they decide on this ahead of time.You can park it in a garage or at someone's house.We will park the car at Jane's apartment.
Step 8: The days you will use the car.
The days each owner will use the car should be written down.You should be as specific as possible so that you don't have to deal with disagreements later on.Jane will use the car on Mondays through Fridays from 6 am to 11:30 am.Jane will be using the car all day Saturday.The car will be used by Michael on Mondays through Fridays from 1:00 pm to 7:30 pm.On Sundays, Michael will have use of the car.
Step 9: It is necessary to outline what approval is required for long trips.
One of you will want to use the car for a long trip.The approval process needs to be clarified.The other owner might be required to give written permission.The person taking the trip could have to pay a rental fee.For example, if one owner wishes to use the car for a trip longer than two days, the person using it will pay rent, in the amount of $75 a day, for the days the other owner wouldn't be able to.
Step 10: Who has authority to make decisions?
Car owners have a lot of decisions to make about their cars.Who can make decisions should be clear.If you want agreement from all owners, you should say that we agree to take part equally in making decisions about the car.We have to agree to sell or make repairs.We will seek mediation if we can't agree.
Step 11: There should be prohibitions included.
If you want to prevent the other owner from using the car in a certain way, you should specify.You might want to prevent the owner from doing any of the following: smoking in the car transporting dogs or other animals, or sleeping in a car for an illegal purpose.
Step 12: How can costs be divided?
Regular costs associated with a car include registration, maintenance, and repairs.You need to know how you want to divide the costs.We will divide the cost of registration, maintenance, and repairs equally.Unless one of us objects, unforeseen costs will be divided equally.We will mediation the dispute if there is no agreement.
Step 13: Who buys gas.
You can divide gas in a number of ways.If you drive the same amount of the car, you might want to split the cost.You could divide the amount by how much you drive.You can type, "We will keep receipts for purchases of gas and then divide the amount equally at the end of the month."We will try to purchase gas in proportion to the miles we drive instead of keeping detailed records.The car gets 25 miles per gallon.
Step 14: You should state the details of your insurance policy.
Your car-sharing agreement should explain how you will divide premiums.The policy will cover up to $250,000 per victim, $750,000 per accident, and $25,000 for property damage, according to the policy details.If one of us commits a driving infraction which increases the cost of the insurance, then that person will be responsible for the increase in the premiums.
Step 15: An indemnification provision needs to be included.
If one owner gets in an accident, this provision is necessary.The owner who is at fault should reimburse the other owner.If one owner totals the car, the other may need to take taxis to work.If one owner is involved in an accident for which he or she is at least partially at fault, then this owner will pay all insurance deductibles as well as indemnify and compensate the other owner for expenses related to the accident which are not covered by insurance.The insurance premiums will be covered by the owner at fault.If one owner is involved in an accident but not at fault, the other owner will pay half of the deductible and any costs related to fixing the car.
Step 16: The process of dispute resolution.
The owners can't agree on whether or not to make a major repair.You will need to resolve the dispute.The method should be stated in your agreement.A neutral third party will guide you to a solution you both can accept in mediation.When you intend to continue your relationship with the other party, mediation is a good way to resolve disputes.If a dispute arises which we cannot solve on our own through discussion, we will attend mediation at the Cook County mediation center.
Step 17: Explain the process for ending a relationship.
One of you might want to end the car-sharing agreement.You need to explain the process.If you co-own the car, termination will involve buying out the other person's share.There are other options.If one of us wants to stop sharing the car, we will consider the following options, according to Kelley Blue Book.
Step 18: There should be a choice of law provision.
A court will have to order a resolution if you end up going to court.You can decide which state's law you want to apply to.Most people choose the state where they live.You can say that the agreement will be governed and construed by the laws of the state.
Step 19: A merger clause could be added.
The entire agreement between the parties is represented by the written agreement.One of you will not be able to claim that you also had an oral side agreement which is not in the contract.The entire agreement should be included in the merger clause.Unless written and signed by both parties, no consent, waiver, modification, or change of terms shall be binding.There are no written or oral agreements regarding this agreement.
Step 20: Take signature blocks and insert them.
Each person sharing the car should have a signature block.The signature name address should be included.
Step 21: You must sign the agreement.
You can sign the agreement in front of a person who isn't a lawyer.Bringing sufficient personal identification is a must.A valid driver's license or passport will suffice.Most town or city offices and the courthouse have notaries.The American Society of Notaries has a locator on their website.
Step 22: Keep a copy.
All parties need to keep a signed copy of the agreement.If there is a disagreement, you can refer to it later.