Vehicle lease agreement, Toyota HiAce BX41KQ

Vehicle lease agreement template with a kilometre cap

A vehicle lease agreement sets the weekly rent, the kilometres included and the state the vehicle has to come back in. This one leases a Toyota HiAce from a trades business to a plastering subcontractor for 24 months at $185 a week including GST, with 20,000 km a year.

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Vehicle lease agreement

Made on 22 June 2027 between Brightford Trades Pty Ltd, ABN 54 118 902 447, of 9 Kembla Way, Braeside VIC 3195, called the Lessor, and Nikau Pereira trading as NP Plastering, ABN 31 664 209 118, of 4 Tarago Street, Dandenong VIC 3175, called the Lessee.

$185
Weekly rent
24 months
Term
20,000
Kilometres a year
$1,800
Insurance excess
1. The vehicle
1.1
What is leased
One 2026 Toyota HiAce long wheelbase van, fitted with a steel roof rack and a two drawer tool cabinet. The Lessor owns the vehicle outright and leases it to the Lessee for use in the Lessee’s plastering business. The lease grants possession and use only, and no interest in the vehicle passes to the Lessee.
Detail
Recorded at handover
Registration
BX41KQ, registered in Victoria to 14 March 2028
VIN
JTFR12P900541882
Odometer
18,420 km
Condition
Photographed on all four sides, two scuffs on the rear bar
Accessories
Roof rack, tool cabinet, spare key, tyre kit
1.2
Handover and acceptance
The Lessee inspects the van before taking it and signs the handover photographs. Anything not noted on those photographs is treated as having been in good order at handover. The Lessee has 48 hours to report a fault that could not reasonably be seen on inspection.
2. Term, rent and GST
2.1
Term
The lease runs for 24 months from 6 July 2027 to 2 July 2029. There is no automatic renewal. Either party may propose a new lease in the final two months, and if nothing is agreed the van is returned on the last day of the term.
2.2
Rent and payment
Rent is $185 a week including GST, taken by direct debit each Friday from the account the Lessee nominates, starting 9 July 2027. A failed debit is retried once, and a second failure attracts the $12 dishonour fee the bank charges the Lessor, at cost.
2.3
GST and tax invoices
The Lessor issues a tax invoice on the first business day of each month for the rent debited in the previous month, so the Lessee has the records it needs to claim input tax credits. Charges for excess kilometres, damage or fines are invoiced separately with GST shown.
2.4
Security deposit
The Lessee pays a deposit of $740, being four weeks of rent, before the van is handed over. It is held without interest and refunded within 14 days of the return inspection, less any rent owed, any excess kilometre charge and any rectification cost under clause 7.2.
3. Kilometres
3.1
The cap
The van is leased on an allowance of 20,000 km in each 12 months of the term, measured from the handover reading of 18,420 km. The allowance is cumulative across the two years, so a quiet first year gives the Lessee room in the second.
Reading point
Allowance
Odometer ceiling
Handover, 6 July 2027
Nil
18,420 km
First anniversary
20,000 km
38,420 km
Return, 2 July 2029
40,000 km
58,420 km
3.2
Excess kilometres
Kilometres above 58,420 km at return are charged at $0.28 a kilometre including GST, invoiced within 14 days of the return inspection. Nothing is refunded for kilometres not used, because the rent already reflects the average running cost of the allowance.
4. Servicing and repairs
4.1
Scheduled servicing
The Lessee books each scheduled service and delivers the van for it, and the Lessor pays the invoice. A service missed by more than 1,000 km or one month makes the Lessee responsible for any consequence of the delay. Roadside assistance is held in the Lessor’s name and the number is in the glove box, and the Lessor provides a replacement van if a repair keeps this one off the road for more than three business days.
Interval
Work
Paid by
10,000 km or 6 months
Manufacturer logbook service
Lessor
Monthly
Tyre pressures, oil and coolant check
Lessee
As needed
Tyres replaced below 3 mm tread
Lessor
As needed
Windscreen, punctures, kerbed rims
Lessee
5. Insurance and accidents
5.1
Cover and excess
The Lessor holds comprehensive insurance on the van and pays the premium. The Lessee pays the excess of $1,800 on each claim, plus the additional excess of $1,200 if the driver at the time was under 25. Tools and stock in the van are not covered. The Lessee reports any accident within 24 hours with photographs, admits nothing to the other driver and authorises no repair, and the Lessor lodges the claim and chooses the repairer.
6. Use, drivers and fines
6.1
How the van may be used
For the Lessee’s plastering business in Victoria and New South Wales. The van is not used for rideshare or parcel delivery work, is not sublet, is not driven off sealed roads and does not tow more than 1,500 kg. It may be driven by the Lessee and by any employee the Lessee names in writing who holds a full licence, and the Lessee stays responsible for each of them.
6.2
Fines, tolls and infringements
Tolls and fines during the lease are the Lessee’s. The Lessor nominates the Lessee as the driver for any infringement notice it receives and passes on the administration fee of $22 charged by the toll operator for each reissued notice.
7. Return condition
7.1
The standard the van is measured against
The van is returned clean inside and out, with the roof rack and tool cabinet fitted, both keys, the service book stamped and a full tank. The inspection compares the van with the handover photographs against the standard below.
Fair wear, no charge
Damage, charged at cost
Stone chips under 3 mm on the front
Dents, creases or panel rust
Light scuffing on the load floor
Holes drilled in the body or floor
Faded paint on the roof
Adhesive signage residue
Even tyre wear above 3 mm
Kerbed rims or a cut sidewall
7.2
Cleaning and rectification
A van returned unclean is detailed at a charge of $150. Damage is quoted by two repairers and charged at the lower quote, and the Lessee may instead arrange the repair itself within 14 days to the same standard.
8. Default, ending and general
8.1
If rent is not paid
Rent more than 14 days overdue puts the Lessee in default. The Lessor gives written notice with 7 days to fix it, and may then end the lease and collect the van. The Lessee pays the rent owed and the cost of collection.
8.2
Ending early
The Lessee may end the lease early on 30 days written notice and a break fee of half the rent remaining in the term, capped at $2,400. There is no option to buy the van at any point, and the Lessee acquires no equity in it by paying rent.
8.3
General
The Lessee declares that the van is leased wholly for business purposes, which is why this is written as a commercial lease rather than a consumer one. This agreement is the whole arrangement between the parties about the van and may be changed only in writing signed by both. Notices go to the email addresses beside the signatures, and the law of Victoria applies.
For Brightford Trades Pty Ltd
Name
:
Position
:
Date
:
Nikau Pereira, NP Plastering
Name
:
Date
:

Section by section

What each section is for, so you can keep the ones you need and drop the rest.

Parties and lease summary
Both ABNs, and a stats strip with the weekly rent, term, annual kilometres and excess.
1. The vehicle
What is leased, the handover table with registration, VIN, odometer and condition, and acceptance.
2. Term, rent and GST
The 24 month term, $185 a week by direct debit, monthly tax invoices and a four week deposit.
3. Kilometres
The 20,000 km allowance as odometer ceilings, and the 28 cents a kilometre excess at return.
4. Servicing and repairs
Who books and pays each item, plus roadside assistance and a replacement van after three days.
5. Insurance and accidents
Comprehensive cover, the $1,800 excess, the under 25 loading and what to do after a crash.
6. Use, drivers and fines
Business use in two states, named drivers, no rideshare, and who pays tolls and infringements.
7. Return condition
The fair wear against damage table, the $150 cleaning charge and the two quote rule.
8. Default, ending and general
Late rent, repossession, the capped break fee and the business use declaration.

Clauses in this document

How to adapt this agreement

For a vehicle leased to an employee rather than a subcontractor, drop the business use declaration and check the fringe benefits treatment before the first payment, because a vehicle provided to staff is taxed differently from one leased to a business. For a fleet, replace the single vehicle table with a schedule of vehicles and give each its own odometer ceiling, so one van running hot does not consume another's allowance. For a lease that is meant to end in ownership, stop and write a different document: this one says plainly that there is no option to buy and no equity accrues, and mixing the two is what turns a lease into a credit contract.

Which law the terms follow

The agreement is governed by the law of Victoria and is written as a commercial lease, on the declaration that the van is leased wholly for business purposes. Rent is quoted including GST and a tax invoice is issued monthly, which is what lets the lessee claim input tax credits. Excess kilometre and damage charges are invoiced separately with GST shown, because they are supplies made at the end rather than part of the weekly rent.

What makes this document work

The kilometre cap is written as odometer ceilings, not a promise

The van leaves at 18,420 km, so the table sets 38,420 km at the first anniversary and 58,420 km at return. A driver can check the cap against the dashboard instead of doing arithmetic, and the 28 cents a kilometre excess applies to one number rather than an estimate.

Servicing says who books it and who pays it

The lessee books and delivers the van, the lessor pays the logbook service, and the table splits tyres and windscreens from punctures and kerbed rims. A missed service by more than 1,000 km moves the consequences to the lessee, which is the only way a service schedule changes behaviour.

Return condition is a table, so the final invoice is predictable

Stone chips under 3 mm, load floor scuffing and faded roof paint are fair wear. Dents, drilled holes, signage residue and kerbed rims are charged at the lower of two quotes, and the lessee may arrange the repair itself within 14 days instead.

Questions people ask

What should a vehicle lease agreement include?

The vehicle with its registration and VIN, the odometer at handover, the rent and how it is paid, the kilometre allowance and the excess rate, who books and pays for servicing, who pays the insurance excess, who may drive it, what happens to fines and tolls, the return condition standard, and what happens if rent is not paid.

How do excess kilometre charges work?

The lease includes an allowance, here 20,000 km for each 12 months, cumulative across the term. Anything above the odometer ceiling at return is charged at 28 cents a kilometre including GST. Nothing is refunded for kilometres not used, because the weekly rent already reflects the average running cost of the allowance.

Who pays the insurance excess on a leased vehicle?

In this lease the lessor holds comprehensive cover and pays the premium, and the lessee pays the $1,800 excess on each claim, plus $1,200 more if the driver was under 25. Tools and stock carried in the van are not covered by that policy and are the lessee's own insurance to arrange.

Is a business vehicle lease different from a consumer one?

Yes, and this agreement says so in clause 8.3. The lessee declares that the van is leased wholly for business purposes, which is why it is written as a commercial lease. A vehicle leased mainly for personal or domestic use sits under consumer credit rules and needs different documents and disclosures.

Can the lessee end a vehicle lease early?

Under this agreement, yes, on 30 days written notice and a break fee of half the rent remaining in the term, capped at $2,400. That cap matters: without one, an early exit in month three of a 24 month lease could cost more than the van is worth to the lessor.

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