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Credit Hire Agreement Template for New Zealand

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Key Requirements PROMPT example:

Credit Hire Agreement

"I need a Credit Hire Agreement under New Zealand law for a fleet of commercial vehicles, including 5 heavy-duty trucks, with a 24-month credit term starting from January 2025, and including optional maintenance services."

Document background
The Credit Hire Agreement is designed for situations where a vehicle owner or fleet operator provides a vehicle to a hirer under credit terms in New Zealand. This document type is particularly relevant when customers require vehicle access but prefer or need to spread payments over time rather than pay upfront. The agreement must comply with New Zealand's Credit Contracts and Consumer Finance Act 2003, Fair Trading Act 1986, and Consumer Guarantees Act 1993, among other relevant legislation. It includes comprehensive details about the vehicle, payment terms, credit arrangements, insurance requirements, maintenance obligations, and usage conditions. The document serves both consumer and commercial purposes, providing necessary protections for all parties while ensuring transparency in the credit hire arrangement.
Suggested Sections

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

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

3. Definitions: Defined terms used throughout the agreement, including technical and financial terms

4. Vehicle Details: Specific information about the hired vehicle, including make, model, registration, and condition

5. Term of Hire: Duration of the hire period, including start and end dates

6. Credit Terms: Financial terms including hiring rates, credit amount, interest rates, and payment schedule

7. Payment Obligations: Details of payment methods, frequency, and consequences of default

8. Vehicle Use and Restrictions: Conditions and limitations on vehicle use, including geographical restrictions and authorized drivers

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

10. Maintenance and Repairs: Responsibilities for vehicle maintenance, servicing, and repair procedures

11. Termination: Circumstances and procedures for early termination or default

12. Return of Vehicle: Conditions and procedures for vehicle return

13. General Provisions: Standard contractual terms including governing law, notices, and dispute resolution

Optional Sections

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

2. Additional Services: Include when offering optional services like maintenance packages or roadside assistance

3. Purchase Option: Include when offering the hirer an option to purchase the vehicle at the end of the hire period

4. Tracking Devices: Required when the vehicle is fitted with GPS or other tracking technology

5. Commercial Use Provisions: Include for agreements where vehicle is intended for business or commercial use

6. Multiple Hirer Provisions: Required when there are multiple hirers sharing responsibility for the vehicle

7. Cross-Border Use: Include when vehicle may be used outside New Zealand

Suggested Schedules

1. Schedule 1 - Vehicle Condition Report: Detailed description of vehicle condition at commencement of hire, including photographs

2. Schedule 2 - Payment Schedule: Detailed breakdown of payments, including amounts, due dates, and payment methods

3. Schedule 3 - Insurance Details: Comprehensive information about insurance coverage, excess, and claim procedures

4. Schedule 4 - Authorized Drivers: List of approved drivers and their license details

5. Schedule 5 - Initial Disclosure Statement: Statutory disclosure information required under the CCCFA

6. Appendix A - Maintenance Schedule: Required maintenance intervals and procedures

7. Appendix B - Fee Schedule: Comprehensive list of additional fees and charges that may apply

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 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

Transportation

Fleet Management

Vehicle Leasing

Car Rental

Commercial Transportation

Business Services

Relevant Teams

Legal

Finance

Operations

Compliance

Risk Management

Customer Service

Sales

Contract Administration

Fleet Management

Credit Assessment

Relevant Roles

Fleet Manager

Credit Manager

Finance Director

Legal Counsel

Compliance Officer

Operations Manager

Risk Manager

Customer Service Manager

Sales Manager

Contract Administrator

Vehicle Finance Specialist

Business Development 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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