Car Lease To Own Agreement Template for Indonesia

The Car Lease To Own Agreement is designed for situations where a party wishes to acquire a vehicle through a combination of leasing and purchasing arrangements in Indonesia. This document is particularly useful when the buyer prefers or requires a gradual path to ownership while having immediate use of the vehicle. The agreement comprehensively addresses both the leasing phase and the eventual transfer of ownership, incorporating requirements under Indonesian law including OJK regulations, fiduciary security requirements, and vehicle registration procedures. It's commonly used by dealerships, financing companies, and fleet management organizations, providing flexibility while ensuring legal compliance with Indonesian regulatory requirements. The document includes essential provisions for payment structures, maintenance responsibilities, insurance obligations, and the specific conditions that must be met for the final transfer of ownership.

1. Parties: Identification of the Lessor/Seller and Lessee/Buyer with complete legal names, addresses, and registration details

2. Background: Context of the agreement, including the intention to enter into a lease-to-own arrangement and basic details of the vehicle

3. Definitions: Definitions of key terms used throughout the agreement including but not limited to Lease Period, Purchase Price, Monthly Payments, and Transfer of Ownership

4. Vehicle Details: Comprehensive description of the vehicle including make, model, year, color, VIN, and current condition

5. Lease Terms: Duration of lease, payment schedule, and conditions for lease renewal or termination

6. Purchase Terms: Total purchase price, payment structure, and conditions for transfer of ownership

7. Payment Terms: Detailed breakdown of monthly payments, allocation between lease and purchase components, payment methods, and late payment consequences

8. Vehicle Usage and Maintenance: Conditions for vehicle use, maintenance responsibilities, and mileage restrictions

9. Insurance Requirements: Mandatory insurance coverage, responsibility for premium payments, and claims procedures

10. Registration and Taxes: Responsibilities for vehicle registration, road tax, and other applicable taxes

11. Default and Termination: Events of default, remedies, and termination procedures

12. Transfer of Ownership: Process and conditions for final transfer of vehicle ownership upon completion of payments

13. Representations and Warranties: Statements and guarantees from both parties regarding their capacity and the vehicle's condition

14. Governing Law and Dispute Resolution: Application of Indonesian law and procedures for resolving disputes