Private Car Rental - the Legal Way?

[Will_I_Am]

Asking for a friend of mine. Is there any legal option to rent out a private vehicle on a long term basis like 2 to 3 years?

Search online but seems like LTA only allows weekends and PH only.

[Hammerhammer]

Actually can on paper. Last time I also "lend" out my car to my "friend" We draft an agreement that during this period of time my "friend" will be driving my car on "loan" and all traffic and parking summons he will be liable and any accident of damages of the car repair cost he will bear. As long as you do not state any monetary term in the agreement then should be ok. My "friend" will of course pay me some money under the table to cover the expenses like installment and road tax and insurance and some coffee money which make up the "rental" ......

 

So in the event the "friend" kanna any summons you can furnish the particulars with the agreement as supporting documents and it will be directed to him.

[Will_I_Am]

Thanks for the advice. Coincidently, he is also driving a Honda Fit/Jazz just like the one in your Avatar.

[Guyver]

Thanks for the advice. Coincidently, he is also driving a Honda Fit/Jazz just like the one in your Avatar.

 

Your friend's Fit is red in colour?

[Fazer]

sorry bros hijack thread cos i dun noe where to post...would like to ask any of the bros here know where can i rent the chrysler voyager.... the stylo milo taxi. tks for ur help.

[Antz_ng]

Anyway, pls becareful. If the person lost your car, then you would have to bear with the cost. He or she will not be held responsible.

[Windchoco]

Based on the above, still means we can't rent out our vehicles legally.... your "fren" can just dun pay u and theres nothing u can do abt it.

[Tzehou]

Yup, you're right.

 

illegal contract = no contract in law (void)

[Soya]

illegal contract = no contract in law (void)

 

Correct. Such 'contracts' wif frens are onli worth the paper they are written on. If 'fren' chalk up huge summons, disappear wif the car or worse, major accident involving millions of $$ in injury claim, there's no recourse in the eyes of the law. Insurance co can simply siam coz the car was used illegally. Not worth the risk.

[Galantspeedz]

Asking for a friend of mine. Is there any legal option to rent out a private vehicle on a long term basis like 2 to 3 years?

Search online but seems like LTA only allows weekends and PH only.

 

 

Our normal insurance is know as private insurance, as long as your fren get a rental insurance coverage, he should be good to go. But of course rental insurance is much higher.

 

Rental article

 

attached a article for your reference

Edited June 9, 2009 by Galantspeedz

[Will_I_Am]

Silver [shakehead]

 

Your friend's Fit is red in colour?

 

[Will_I_Am]

Yeah ... I warned him too.

*Sigh* .. the s*it youngsters gets into today with the liberation of the car market.

10 years loan. Zero $ Drive-away. Overtrade con job.

 

Anyway, pls becareful. If the person lost your car, then you would have to bear with the cost. He or she will not be held responsible.

 

[Rickster]

Actually can on paper. Last time I also "lend" out my car to my "friend" We draft an agreement that during this period of time my "friend" will be driving my car on "loan" and all traffic and parking summons he will be liable and any accident of damages of the car repair cost he will bear. As long as you do not state any monetary term in the agreement then should be ok. My "friend" will of course pay me some money under the table to cover the expenses like installment and road tax and insurance and some coffee money which make up the "rental" ......

 

So in the event the "friend" kanna any summons you can furnish the particulars with the agreement as supporting documents and it will be directed to him.

 

To add on further...pls ensure that all "rental" are paid in cash!! Leave no trace behind

 

Insurance companies will only be too glad to nullify your claims if they find out that you are renting out your car.

[Rickster]

sorry bros hijack thread cos i dun noe where to post...would like to ask any of the bros here know where can i rent the chrysler voyager.... the stylo milo taxi. tks for ur help.

 

The voyager is an MPV leh. The one used for taxis is the 300C.

[Rickster]

Based on the above, still means we can't rent out our vehicles legally.... your "fren" can just dun pay u and theres nothing u can do abt it.

 

Its not a contract.

 

Its just a piece of agreement to state that the vehicle during this period of time is not in under your friend's possesion and its used to cover your own backside should your friend get into trouble with the law while using the car. Totally nothing to do about payment during an accident/rental.

[Rickster]

Yup, you're right.

 

illegal contract = no contract in law (void)

 

That is not an illegal contract as it has got nothing to do with rental - rather, it only states that the vehicle in in the possesion of a 3rd party.

 

[Rickster]

Correct. Such 'contracts' wif frens are onli worth the paper they are written on. If 'fren' chalk up huge summons, disappear wif the car or worse, major accident involving millions of $$ in injury claim, there's no recourse in the eyes of the law. Insurance co can simply siam coz the car was used illegally. Not worth the risk.

 

Just for general knowledge.

 

Even if it is a verbal agreement. If it can be recorded and reproduced, it can be used in court for litigation purposes.

 

[Soya]

I know verbal agreements are oso considered a binding contract. But if the contract is for an unlawful purpose in the first place, it's not recognised by law and hence oso unenforcable by law. For example, if party A signs a contract wif party B $$ to rob a bank on their behalf and party B backs out, good luck going to the courts to enforce contractual duty on party B.