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Alaska Auto Leasing Terms and Conditions

1. Definitions

The "Lease Agreement" consists of these Terms and Conditions, the signed lease document, the Vehicle Inspection Report, the final charges summary, and any addenda. "You" or "your" refers to the lessee named in the Lease Agreement, any signatory, Authorized Drivers, or entities billed at your direction, all jointly and severally responsible. "We," "us," or "our" refers to Alaska Auto Leasing, Inc., located at 2135 Richardson Hwy, North Pole, Alaska 99705. An "Authorized Driver" is the lessee or any additional driver listed in the Lease Agreement, provided they hold a valid driver’s license and meet our eligibility requirements. "Vehicle" includes the leased vehicle, its tires, equipment, accessories, keys, and documentation, or any substitute vehicle we provide. "CDW" means Collision Damage Waiver. "Physical Damage" includes damage or loss from collision, upset, theft, vandalism, natural disasters (e.g., flood, hail, fire), or other comprehensive losses. "Loss of Use" is our inability to utilize the Vehicle for leasing, display, sale, or staff transport due to damage or loss during the lease. "Diminished Value" is the Vehicle’s market value reduction post-repair compared to its pre-damage value.

2. Lease Contract, Indemnity, and Warranties

This Agreement is a contract for leasing the Vehicle specified in the lease document or its substitute. You agree to lease the Vehicle and adhere to all terms herein. We may repossess the Vehicle at your expense without notice if it is abandoned or used unlawfully or in violation of this Agreement. You are not our agent for any purpose. You agree to indemnify, defend, and hold us harmless from all claims, liabilities, costs, and attorney fees arising from this lease or your use of the Vehicle. We offer no warranties, express or implied, including merchantability or fitness for a specific purpose, and are not liable for any claims or damages related to this lease. Contact us at (907) 978-9278 or reservations@akautoleasing.com for inquiries.

3. Vehicle Condition and Return

You acknowledge receiving the Vehicle in proper working order, with any pre-existing damage documented in the Vehicle Inspection Report. You confirm inspecting the Vehicle prior to use. You must return the Vehicle to 2135 Richardson Hwy, North Pole, Alaska 99705, or another designated location, on the agreed date and time, or earlier if requested, in the same condition as received, except for ordinary wear. You remain responsible for the Vehicle’s safety and any damage until we inspect it upon return. Vehicle servicing or replacement of parts/accessories during the lease requires our prior approval. You must monitor and maintain fluid levels and return the Vehicle with at least the same fuel level as received. Unauthorized returns to a non-designated location incur a recovery fee of $5.50/mile (minimum $60) based on the distance from the specified return location.

4. Prohibited Uses

You and Authorized Drivers may not use the Vehicle or allow its use: (a) By unauthorized drivers; (b) For hired passenger or cargo transport; (c) To tow or push objects; (d) With tire chains installed; (e) In races, contests, or speed trials; (f) For driver instruction; (g) Under the influence of alcohol, drugs, or impairing substances; (h) For illegal activities; (i) In reckless conduct (e.g., not using seat belts, overloading, intentional damage); (j) To carry hazardous or illegal materials; (k) With improperly secured or excessive cargo; (l) To transport animals, except legally registered service animals; (m) With more passengers than available seat belts; (n) With passengers outside the passenger compartment; (o) Without required child safety seats; (p) When low fluid levels or conditions suggest potential damage; (q) Off-road or on restricted routes (e.g., gravel highways without a specialty vehicle); (r) Beyond geographic limits or with tampered tracking systems; (s) Unlocked or with keys left inside; (t) By non-Authorized Drivers; (u) Using false or misleading information to secure or extend the lease; (v) For subleasing or transferring the Agreement; (w) For ride-sharing services (e.g., Uber, Lyft).

Violating these terms breaches the Lease Agreement, voids CDW and other coverages, and makes you fully liable for all losses or damages. Such breaches may also nullify liability protection, as permitted by law.

5. Liability for Damage or Loss

You are fully responsible for all Vehicle loss or damage, including from weather, road conditions, or natural events, regardless of fault or cause. If you purchase and initial the optional CDW at the lease’s start and comply with this Agreement, we will waive a portion of your liability for Physical Damage, including Diminished Value. CDW does not cover towing, citations, Loss of Use, or administrative fees and is not insurance. Breaching this Agreement voids CDW. Without CDW, you must pay: (a) Physical Damage:

  • Total loss (e.g., theft, irreparable damage): Retail fair market value minus salvage value.

  • Repairable damage: Reasonable repair costs plus Diminished Value (pre-damage vs. post-repair value). If we choose not to repair, you pay the fair market value minus proceeds from selling the unrepaired Vehicle. (b) Loss of Use: Compensation for downtime at the daily lease rate, regardless of fleet availability. For repairs, calculated as repair estimate hours ÷ 4 hours/day, plus weekends and 4 administrative days for logistics. For replacements, capped at 28 days. (c) Administrative Fee: For claim processing, based on repair cost: $0–$200 = $50; $201–$400 = $70; $401–$600 = $90; $601–$1,200 = $140; $1,201–$2,000 = $180; $2,001+ = $230. (d) Diminished Value: Determined by an independent appraisal. (e) Towing/Storage: Plus other reasonable incidental costs. (f) Windshield Damage: Replacement cost plus one day’s lease rate for logistics, or $60 per repairable chip. If you purchase and initial the optional Windshield Damage Waiver (WDW) and comply with this Agreement, we waive windshield repair/replacement costs. WDW is not insurance and is voided by Agreement violations.

6. Reporting Damage or Loss

For accidents, theft, vandalism, or other damage/loss, you must:

  • Submit our Incident Report within 24 hours.

  • Notify police or appropriate authorities.

  • Cooperate fully in our investigation.

  • Provide insurance details upon request and process claims promptly unless you pay us within 7 days.

  • Deliver any legal notices or documents received. Non-compliance breaches the Agreement and voids CDW, WDW, and other coverages. Contact us at (907) 978-9278 or reservations@akautoleasing.com for support.

7. Insurance

You are responsible for all damage or loss you cause to others or their property. You must provide auto liability, collision, and comprehensive insurance covering you, us, and the Vehicle. Where required by law, we provide secondary auto liability insurance with minimum limits per Alaska law, which is voided if you breach this Agreement or fail to cooperate in investigations. Unauthorized drivers terminate our liability coverage. We reject PIP, medical payments, no-fault, and uninsured/underinsured motorist coverage. For Florida residents or vehicles entering Florida, per Fla. Stat. 627.7263, your liability and personal injury insurance is primary, meeting Fla. Stat. 324.021(7) requirements.

8. Charges

You will pay all charges due under this Agreement, including: (a) Lease rates and fees in the lease document. (b) Fuel and a $15 refueling fee plus $8.50/gallon if returned with less fuel. (c) Costs to locate or recover the Vehicle if you fail to return it or we repossess it. (d) Attorney fees to enforce this Agreement. (e) A $60/month late payment fee (or legal maximum) for overdue amounts. (f) $60 for returned checks. (g) Cleaning fees up to $450 if the Vehicle is returned significantly dirtier than received. (h) Fines, penalties, parking, traffic, toll violations, towing, storage, and related costs, plus a $60 processing fee per citation if we pay on your behalf.

9. Deposit

We may apply your deposit to any amounts owed under this Agreement.

10. Personal Property

You release us, our agents, and employees from liability for loss or damage to personal property left in the Vehicle, our service vehicles, or at 2135 Richardson Hwy, North Pole, Alaska 99705, whether due to our negligence or otherwise.

11. Breach of Agreement

Prohibited uses (Paragraph 4) are material breaches. You waive recourse against us for any criminal reports or prosecutions arising from your breach.

12. Modifications

No term may be waived or modified except by a written agreement signed by us. Lease extensions may require Vehicle inspection and a written amendment at our office at 2135 Richardson Hwy, North Pole, Alaska 99705 (call (907) 978-9278). This Agreement is the entire agreement; all prior representations are void.

13. Miscellaneous

  • A waiver of one breach does not waive other breaches or your obligations.

  • Our acceptance of payment or failure to enforce rights does not waive other provisions.

  • Unless prohibited by law, you release us from liability for consequential, special, or punitive damages related to this lease or reservation.

  • If any provision is void or unenforceable, the remaining provisions remain valid.

  • Contact us at (907) 978-9278 or reservations@akautoleasing.com for inquiries.

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