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Credit Hire Agreement Template for Australia

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Key Requirements PROMPT example:

Credit Hire Agreement

"I need a Credit Hire Agreement for a fleet of luxury vehicles being hired to corporate clients in Sydney, with flexible payment terms and an option for early purchase starting from January 2025."

Document background
The Credit Hire Agreement is essential for businesses offering combined vehicle hire and credit services in Australia. It is typically used when customers require both a vehicle and financing arrangement through a single agreement. The document must comply with strict Australian credit legislation, including the National Consumer Credit Protection Act 2009 and state-specific regulations. A Credit Hire Agreement includes comprehensive details about the credit facility, vehicle specifications, payment terms, insurance requirements, and maintenance obligations. It's particularly relevant for fleet management companies, vehicle rental businesses, and financial institutions offering asset-based lending. The agreement should be regularly reviewed and updated to ensure ongoing compliance with Australian credit and consumer protection laws.
Suggested Sections

1. Parties: Identification of the credit provider/vehicle owner and the hirer, including full legal names, ABN/ACN, and addresses

2. Background: Context of the agreement, including the purpose of the hire and credit arrangement

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules for interpretation

4. Credit Terms: Details of the credit facility, interest rates, payment terms, and credit limit

5. Hire Terms: Duration of hire, rental rates, and basic terms of vehicle usage

6. Vehicle Details and Condition: Specification of the hired vehicle and its condition at commencement

7. Payment Obligations: Detailed breakdown of all charges, payment schedules, and payment methods

8. Insurance Requirements: Mandatory insurance coverage and responsibilities for insurance

9. Hirer's Obligations: Responsibilities for vehicle maintenance, permitted use, and reporting requirements

10. Owner's Obligations: Responsibilities for vehicle provision, maintenance, and statutory compliance

11. Default and Enforcement: Consequences of payment default and enforcement rights

12. Termination: Circumstances for termination and process for ending the agreement

13. General Provisions: Standard legal provisions including notices, governing law, and dispute resolution

Optional Sections

1. Additional Services: Details of optional services such as maintenance packages or roadside assistance

2. Replacement Vehicle Provisions: Terms for providing replacement vehicles during maintenance or breakdown

3. Guarantor Provisions: Required when a guarantor is providing security for the credit arrangement

4. Cross-Border Use: Required when interstate or international vehicle use is permitted

5. Novation Terms: Include when the agreement may need to be transferred to another party

6. Special Conditions: For any unique terms specific to the particular hire arrangement

7. Early Termination Options: Include when early termination flexibility is offered

8. Reward/Loyalty Program: When the hire is linked to a rewards or loyalty program

Suggested Schedules

1. Schedule 1 - Vehicle Specification: Detailed description of the vehicle including make, model, registration, and VIN

2. Schedule 2 - Fee Schedule: Comprehensive breakdown of all fees, charges, and interest rates

3. Schedule 3 - Condition Report: Detailed report of vehicle condition at commencement of hire

4. Schedule 4 - Insurance Details: Specific insurance requirements and policy details

5. Schedule 5 - Payment Schedule: Detailed payment dates and amounts for the duration of the agreement

6. Schedule 6 - Authorized Drivers: List of permitted drivers and their license details

7. Appendix A - Credit Assessment: Credit check results and assessment details

8. Appendix B - Required Documents: Copies of identification, licenses, and other required documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses

































Relevant Industries

Automotive

Financial Services

Fleet Management

Vehicle Leasing

Car Rental

Transportation

Corporate Services

Insurance

Asset Finance

Relevant Teams

Legal

Compliance

Finance

Operations

Fleet Management

Risk Management

Credit Assessment

Collections

Customer Service

Business Development

Contract Administration

Asset Management

Relevant Roles

Fleet Manager

Credit Manager

Legal Counsel

Compliance Officer

Risk Manager

Finance Manager

Operations Manager

Contract Administrator

Credit Analyst

Vehicle Asset Manager

Commercial Director

Business Development Manager

Customer Service Manager

Insurance Coordinator

Collections Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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