The following lease agreement form is meant to be used by one individual dealing with another individual or a commercial transaction between non-consumers. It therefore does not contain disclosures required by the Federal Consumer Leasing Act.
The Federal Consumer Leasing Act, which is part of the Truth in Lending Act, applies to any lease of consumer goods for more than four months in which the total contractual obligation does not exceed $25,000. (It does not apply to leases of real estate.) This law requires the lessor (the owner of the auto you lease, for example) to disclose information before you sign the lease. Among the most important items are
" the capitalized cost -- that is, the cost of the goods being leased (the capitalized cost is negotiable to the same extent that the price of goods is negotiable if you were buying them instead of leasing them);
" the total amount of any initial payment you are required to pay;
" the number and amounts of monthly payments;
" the total amount for fees, such as license fees and taxes;
" any penalty for default or late payments;
" the annual mileage allowance and the extra charges involved if you exceed that allowance;
" whether you can end the lease early, and the method of computing the charge if you do so;
" whether you can purchase the auto at the end of the lease and for what price;
" any liability that you may have for the difference between the estimated value of the auto and its market value at the time you end the lease; and
" any extra payment that you must make at the end of the lease.
A Michigan lease or rental agreement of personal property with the option to purchase and own personal property allows individuals to lease or rent various types of goods, with the potential to eventually buy and own them. This arrangement typically includes a lease agreement, specifying the terms and conditions of the rental period, the rent amount, and any additional fees or requirements. Additionally, it outlines the option to purchase the leased property eventually, providing a pathway for renters to become owners. There are several types of lease or rental agreements of personal property of any type with an option to purchase and own personal property available in Michigan, including: 1. Vehicle Lease or Rent-to-Own Agreement: This type of agreement applies to leasing or renting vehicles such as cars, trucks, motorcycles, or recreational vehicles (RVs). It enables individuals to use the vehicle for a predetermined period, paying monthly payments, and eventually purchase the asset. 2. Electronics Lease or Rent-to-Own Agreement: This type of agreement pertains to leasing or renting electronic devices like smartphones, tablets, laptops, or televisions. Renters have the option to upgrade their devices after a specified time or purchase the product later. 3. Furniture Lease or Rent-to-Own Agreement: This agreement allows individuals to lease or rent furniture, including sofas, beds, dining sets, or home appliances. The renter can utilize the furniture for a fixed term, make monthly payments, and choose whether to buy the items at the end of the lease. 4. Equipment Lease or Rent-to-Own Agreement: This type of agreement caters to renting or leasing tools, machinery, or equipment like construction equipment, agricultural tools, or office equipment. It gives individuals the opportunity to use the equipment for their specific needs and potentially acquire ownership over time. 5. Musical Instrument Lease or Rent-to-Own Agreement: This agreement applies to leasing or renting musical instruments, such as pianos, guitars, or drums. It offers aspiring musicians the option to rent instruments initially and eventually purchase them if they decide to pursue their musical endeavors. Michigan lease or rental agreements of personal property with an option to purchase and own personal property offer flexibility and convenience to individuals who desire temporary possession of various items. Renters can access the desired goods without committing to immediate ownership, allowing them to evaluate the suitability of the product before making a final purchase decision. These agreements provide an alternative financial pathway to ownership, especially for individuals who might face challenges with upfront costs or those seeking short-term commitments.
