What is the loan for use of the car?

What is the loan for use of the car?

The loan for use of cars is the document with which one party (lender) grants the other (borrower) the use of a vehicle, to use it for a certain period of time and for a specific use, with the obligation to return it within an agreed term.

written contract is not required to loan a car. However, it is always best to keep track of the agreements between the parties with a document. For example, to ensure that the car is returned at the end of the loan and ensure that the owner is not responsible for the vehicle and that the borrower takes out insurance in his name.

When using the free loan for use for private or company cars

It is important that the car is licensed for use free of charge. In fact, if the car is granted against payment of a fee, it is not a loan for use but a rental contract or lease of movable property.

It is possible that the car loan contract is used for private cars (e.g. between two family members) or for company vehicles. For example, it is possible that a father grants the use of the car to his son who has come of age or that a company facilitates the activity of an employee by granting him a company car for his travels.

The car loan contract can be either for a fixed term or for an indefinite period. In the latter case, if a deadline has not been set and this does not result from the use of the asset, the bailor can demand its return at any time without justification. Otherwise, if the contract has an expiration date, the lender cannot demand the return before that term, unless an urgent and unforeseen need arises.

Registration to the motorization of the free loan for use

If a car is granted in use, the loan agreement does not have to be registered with the Revenue Agency, as in the case of the loan for real estate.

However, if the loan lasts more than 30 days, it must be registered with the civil motorization for a new title (temporary title). In this case, it is necessary for the borrower to register within 30 days of signing the contract. The operator will provide the new holder with a new coupon to be applied to the booklet with the data of the loan (e.g. data of the borrower, duration, etc.).

However, if the car is given on loan for use to a cohabiting family member or to an administrator or employee of a company, the obligation to register with the motorization is no longer required. It is important, in these cases, that the family member is a cohabitant of the lender, for example, a loan of a car between father and son who live in the same house.

What does the free car loan agreement model contain?

Our free car loan agreement meets all legal requirements. The main clauses concern:

  • Description of the asset: to describe the car that is given on loan for use;
  • Intended use of the asset: to limit the purpose for which the car must be used;
  • Conservation and custody charges: to describe the conservation obligations and the state that the vehicle must have at the time of delivery;
  • Compensation for damages: to provide that in the event of the loss of the car – if it occurred through the fault of the borrower – the latter pays compensation for damages to the lender;
  • Duration: the contract can be for a fixed or indefinite period.

At the end of the interview, we will guide you step by step through all the necessary subsequent steps.

Information you need

All parts data are required to complete the document.

Remember that our interview does not generate a simple facsimile of loan for use of cars. Based on your answers, the system automatically elaborates a customized contract model for your needs, guaranteeing its correctness.

The document can be modified in all its parts.

Other names

  • Free loan for car use
  • Free loan for use
  • Property loan agreement
  • Loan agreement for movable property

Other useful templates and facsimiles

  • Tourist or Vacation Rental Contract: to rent a house or apartment for holidays or tourism
  • Commercial Lease Agreement: to rent a property for uses other than residential (e.g. shop, office)
  • Rental Agreement for Forester Use: to rent a house or apartment for your employees, managers and collaborators
  • Rent to Buy contract (rent with redemption): to lease a property and offer the tenant the opportunity to buy it
  • Indemnity letter (discharge of liability): to exempt a person from liability for a risky activity