Three Things to Know About a Short-Term Car Lease

If you don’t want to go for a traditional or long-term lease, you can search for a short-term auto lease that allows you to keep a vehicle for a briefer period of time. While a lease typically lasts two to five years, you can go for a short-term lease for about 12 months to suit your needs. Go to eAutoLease.com to learn more about the difference between a long-term lease and a short-term lease and what you can do to find the right deal that works best for you.

What Are Short-Term Leases?

A short-term lease is a contract that offers you a chance to drive a vehicle for two years or less. While a traditional lease is three years and can be extended, a short-term lease works well for people seeking a temporary solution.

Short-term leases are best when they come from the dealer, and you want a brand-new car for about 12, 18, or 24 months. You can also get a shorter lease by doing a lease takeover.

Here are some details you need to keep in mind when considering a short-term car lease:

A shorter lease means a higher monthly payment – This is the most crucial detail. The shorter the lease, the higher will be your monthly payment as new cars tend to depreciate swiftly, and most of the depreciation occurs in the first year. Longer leases let you spread that loss of value out over time, but shorter leases do not have that much time. You should be ready to pay more if you only need a car for a limited period.
You have to make a down payment and pay other fees – Leasing does not come cheap. When you take on a lease, you are sort of buying a car for that part of the time, which is just like buying a car. The dealer will ask you to make payment for the entire lease upfront, including the loan interest. You will also have to take care of taxes, registration, and dealer fees. Even if your credit is not perfect, you can get a lease, though with higher monthly payments.

How to get a short term car lease

Pros and Cons of Short-Term Lease

You must consider its benefits and risks before going for a short-term lease.

Pros of short term lease include:

Access to the latest model cars – Short-term auto lease is an effective way to drive the newest cars without making a serious investment. If you love driving a new car, you can lease the model of your choice for a year or two.
Cost-effective, convenient transportation – If you are going away on a work trip or business purpose for some time or will be moving to a place near your work, short-term leasing can be less expensive and more convenient than other options like renting or relying on Uber.
Minimal commitment – If you need a car fast but cannot find the perfect one to suit your lifestyle or budget, a short-term lease may help you in this regard. You get a car quickly without making any long-term commitments. You can continue searching and test-driving cars to find the one that you really want.

Cons of a short-term lease include:

Higher monthly payments – Short-term leasing is more expensive than traditional leasing. New cars depreciate 20% in the first year and with a short-term lease you drive the car while it depreciates rapidly. Monthly payments for short-term leases are higher than long-term leases as they account for the significant loss in value that occurs during the car’s initial years.
Limited mileage – Short-term leases limit the number of miles you can drive. The most typical annual mileage options are 10,000, 12,000, and 15,000 miles. If you go above these miles, you pay a penalty when you turn in the car at the end of the lease term.
Not easily available – Long-term leases are far more common than short-term leases. It may be tough to find a dealership that offers leases shorter than two years. Having limited options can land you in a tight spot, and you may have to go beyond your budget as you have fewer quotes to compare.

How to Get a Short-Term Car Lease?

Here are three things to know about short-term car leasing:

Go for a lease takeover

People sometimes need to get out of their lease agreement before it ends. They post their vehicle as available on a lease takeover platform. You can check the location, car type, and number of months remaining on the lease and make a good choice. A lease takeover works best for people who need a vehicle for several months and do not want a longer commitment.

If you take over a lease, you will be responsible for all of the obligations in the original agreement. You will also have to pay attention to how many miles you have from the lease mileage limit to prevent paying a penalty for excess mileage.

Get a long-term rental

Major car rental companies offer long-term rentals with several advantages, including no down payment, no financing, and no mileage limits. The biggest flexibility is that the contract does not lock you into a particular timeframe. If you need a car for a few months, it could be a good solution. All you need to do is find a national car rental company that offers monthly leasing to suit your budget and lifestyle needs.

Sign for a shortest traditional lease

If you need a car for at least a year, a short-term traditional lease from a dealership may be the best solution. Almost all automakers offer new car leasing, but you may find different minimum lease terms for different models. You will have to shop around to find a 12 or 24-month deal. Remember, short-term leases cost more per month.

Shorter leases may be less common than longer alternatives, but they can be a great way to access a vehicle without committing to a lengthy contract. Knowing their pros and cons and looking at the right places can help you make a good choice. Visit eAutoLease.com for expert opinion on exploring all the available options and learning how short-term leases work and give you a chance to drive a good car without making a long-term commitment.