A “short-term car lease” is a rental agreement that typically lasts 3 to 24 months. Car leasing is a good option for people who need a car for a temporary period, such as those waiting for a new car to be delivered or traveling for business.
Short-term lease agreements can range from 3 to 24 months in length. Short-term car leasing, for example, a 1 year car lease, allows for flexibility and is an excellent solution for various circumstances.
It enables individuals to drive a brand-new car for a specific duration at an affordable fixed rental rate. Short-term leasing is cheaper than daily rentals and offers various benefits such as no large down payment, low monthly payments, and full manufacturer’s warranty and breakdown cover.
How long can a short term car lease last?
Standard durations of a short term car lease range from 1 month to 24 months. Here is a breakdown of the typical durations:
- 1 month (28 days)
- 3 months
- 6 months
- 12 months
- 24 months
For 1 to 6 months, leasing is often more popular for personal use, while businesses lease for longer durations (12 to 24 months).
What are the advantages of short-term lease deals?
Flexibility and no long-term commitment: Short-term leasing allows you to lease a vehicle for a specific duration. This eliminates the need for long-term commitments, making it ideal for temporary needs or situations where circumstances might change.
Affordability: Short-term leasing is often more cost-effective than daily car rentals, especially for extended periods. It offers fixed monthly payments that help with budgeting, eliminating large down payments, and reducing the overall cost of vehicle ownership.
Variety of vehicle options: Short-term leasing companies typically offer various makes and models. The options allow you to select a vehicle that best suits your preferences and requirements, for example, a car or a van.
New vehicle experience: Short-term leasing provides the opportunity to drive a brand-new vehicle with the latest features and technologies. This eliminates the hassle of dealing with maintenance and repairs associated with older cars.
Convenience: Short-term leasing companies often provide free nationwide delivery and collection services, making it convenient for customers to receive and return their leased vehicles. Additionally, many companies offer quick delivery options within two weeks, subject to vehicle availability.
What are the disadvantages of short-term lease deals?
Higher monthly payments: Short-term car leases typically have higher monthly payments than long-term leases because the lender is taking on more risk.
Less flexibility: Short-term car leases typically have less flexibility than long-term leases. For example, you may be unable to change your car or terminate the lease early without penalty.
Mileage restrictions: Short-term car leases often come with mileage restrictions, charging a penalty fee if you exceed the mileage limit.
Early termination fees: If you terminate your short-term car lease early, you will likely have to pay an early termination fee.
Vehicle availability: Short-term car leases may be limited, especially for popular models.
What are the typical short-term leasing scenarios for individuals and businesses?
- You have a new vehicle on order with a longer-than-usual waiting period.
- You need more credit history.
- Your circumstances are about to change, and you don’t want to overcommit.
- Your business has seasonal patterns with varying needs for a vehicle.
- You have new or temporary staff or staff on probation, and your company doesn’t want to overcommit.
- You need a car for more than 12 months. However, longer-term leasing may be more suitable.
Short-term car leasing is an ideal solution for various situations, both for individuals and businesses, offering flexibility, convenience, and cost-effectiveness.