Car Ownership Contract
 
 
 

The world runs on contracts.  It is important for your Young Adult to learn to read contracts.  Starting off with a conversation about your expectations will give your teen the confidence to read the details of future contracts.  Buying a car, getting financing, getting insurance, buying gas with a credit card are all transactions that are, in effect, contracts.  Give your young adult a leg up by practicing with their own contract.  If you highlight and copy this document, you can copy it on to your computer.

____________ Family Agreement for Car Ownership  Agreed as Follows Between Parents and Young Adult  ____________________

Term.  This agreement shall commence on Day______________ and last till  ____________


Obligations of Older Generation

  1. 1.Purchase a safe running car with adequate safety features to include air bag, seatbelts and appropriate tires.

  2. 2.Pay for a base insurance policy for coverage of liability and collision.

  3. 3.Provide financial backup for repairs and large maintenance fees.

  4. 4.Provide guidance and direction to legal affairs, licensure, etc.

  5. 5.Maintain and account for all maintenance costs in a fund designated for such.

Obligations of Young Adult

  1. 1.Agrees that driving the car is a privilege attendant to all prior rules and agreements made in this family towards driving.

  2. 2.Agrees to pay parent $ 30 a month towards a fund which shall provide all fees for maintenance such as tires, repairs, oil change fees.

  3. 3.Any surplus in such fund shall be considered payable to Young Adult upon graduation or termination of this agreement.

  4. 4.Agree to perform routine maintenance on the car - 3000 mile oil changes, car wash with each fill up during winter, waxing at least once a year, etc.

  5. 5.Pay for all gas and oil.

  6. 6.Agrees to participate in caring for maintenance of driveway clearance with shoveling of snow.

  7. 7.Agrees to keep the door locked when not parked at home or at a friend's house

  8. 8.Agree to all terms in Safe Driving Contract

General Agreements

  1. 1.Agrees that the car is owned by Parent and is for use under the following rules:

  2. 2.Unrestricted use shall be attendant upon achieving a ____ % grade average, for each quarter, in all classes not of an advanced placement (AP) nature.

  3. 3.Restricted use shall be permitted if grade average, calculated quarterly, shall be above ____% of all non AP classes.

  4. 4.No use, for one quarter, if grades fall below ____% on non AP courses.

  5. 5.Agrees to not use car to leave school when school is in session.

  6. 6.Agrees that any additions or improvements to the car shall by made only upon the approval of the owner.

  7. 7.Agrees that no one shall at any time smoke in the car or have any alcohol in the car.

  8. 8.Agrees to provide transportation to his/her sibling in those circumstances for which doing so will save parents driving such as to school when he/she is going to school or upon return from school when parental driving in difficult.

  9. 9.Agrees that he/she is not to be the prime source for his/her sibling's transportation needs.

  10. 10.Agrees to park on  __________________.

  11. 11.Agrees to keep a curfew of ________ on weekends and ______ on school nights unless special permission is obtained.

  12. 12.Agrees to notify parents of whereabouts including expected times of arrival and return  when using the car other than routine transportation to school.

Consequences for Breach of the Above


  1. 1. Agrees that for breach privileges of driving may be suspended for _________________.


  1. 2. Agrees that damage to car will require Young Adult to work to pay back the costs of repairs not covered by insurance.


  1. 3. Agrees that the extra cost of insurance increases caused by tickets and accidents shall be the sole responsibility of young adult.


4.______________________________________________________________


This concludes this agreement:


   Signed by Young Adult  _________________________ Date______________

 



   Signed by Parent________________________________________

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