When people think about leasing a car, they usually imagine agreements lasting two to three years. But what if you only need a car for a year?
Yes, One-Year Car Leases Are Available
Many leasing companies can create a lease for as long as you need, whether it’s a weekend or several years. If you need a one-year lease for personal or business reasons, they can arrange it. However, choosing a longer lease may be recommended if it’s an option, as shorter leases can sometimes come with higher costs.
Can You Lease a Car for 1 Year?
Leasing a car for one year, also known as a short-term lease, is a good option for people who only need a vehicle for a short period. A one-year lease lets you rent a car for 12 months, giving you more flexibility compared to standard leases that usually last 24 to 36 months.
If you find a dealership willing to offer a one-year lease, be sure to negotiate the terms, just like any other lease. Keep in mind that your monthly payments will probably be higher than those for longer leases.
What Is Short-Term Leases
While traditional car leases typically last between 24 and 36 months, short-term leases offer the flexibility of a shorter commitment. Leasing a car for just one year can be suitable for a variety of situations, such as temporary work assignments, extended vacations, or to test drive a new car model without a long-term commitment.
How to Lease a Car for 1 Year
Contact Dealers and Leasing Companies
Not all dealers or leasing companies offer 1-year leases. Contact several dealers and leasing companies to inquire about their short-term lease options. There are leasing companies that specialize in short-term leases. They cater to customers looking for leases as short as one month, making it relatively easy to arrange a one-year lease.
Look for Lease Transfer Services
Lease buyouts, where you take over the remaining term of someone else’s lease, can be a good option. Platforms like Swapalease and LeaseTrader facilitate lease transfers, where you can take over an existing lease with a shorter remaining term. This can be a great way to find a 1-year lease.
Negotiate Terms
When talking to dealers, try to negotiate the terms of the lease to fit your needs. Some dealers may be willing to accept a shorter lease period if they see you as a potential long-term customer.
Corporate or Fleet Leasing
Companies often offer one-year leases for vehicles in their corporate fleet. In some cases, they may also be available for personal use.
Check out manufacturer offers
Sometimes, some car manufacturers run promotions that include short-term leasing options. Keep an eye out for these offers.
Benefits of One Year Car Lease
Flexibility
Why might you want to get a one-year lease? There are a number of reasons, including temporary work assignments, temporary military assignments, family situations that require you to move for a short time, and opportunities for education or career training.
Lower Commitment
Another reason is the opportunity to test drive a type of car before committing to a longer lease or purchasing one. As we’ll discuss in the next section, a short-term lease is a terribly expensive way to take a long test drive.
Lower Maintenance Costs
Newer vehicles are less likely to require major repairs, and often the shorter lease period means you won’t have to worry about significant maintenance costs.
Downsides of One Year Car Lease
Higher Monthly Payments
The monthly payments on a one-year lease for a new vehicle can be extremely high compared to those on a two- or three-year lease. This is because cars, trucks, and SUVs depreciate rapidly during their first year on the road, a little less during the second year, and much less during subsequent years. If you lease for only the first year, you are responsible for a significant portion of the vehicle’s depreciation.
Limited Availability
Not all dealers offer one-year leases, making it more difficult to find suitable options.
Mileage Limits
Be aware of mileage limits, as exceeding them can result in additional charges. Short-term leases typically have lower mileage allowances.
Alternatives Options You Can Choose Rather Than One Year Car Leases
There are some alternatives to one-year leases that are potentially more affordable.
Taking on the expiration of another lease
An interesting alternative to opening a new one-year lease is to “take over” the lease of someone else who wants to end it early. In this situation, you may be able to “buy out” the last few months of a vehicle lease that was originally two or three years long.
It could be three months or the full twelve months you were planning on. When you buy out the lease, you become the new owner of the car lease, but at a lower, more advantageous rate because the lease started out longer than one year.
Subscription Services
One of the newest ways to get a car for a short period, without the hassle of buying and then getting rid of a vehicle, is a new car subscription. With many vehicle subscription programs, you pay a monthly fee that covers almost everything related to the car, from maintenance to insurance. You still pay for gas, but that’s it.
Buying a Used Car
Buying a used car with the intention of reselling it after a year can be more cost effective than leasing in some cases.
Final Thoughts
Leasing a car for a year is possible and can offer great flexibility and convenience for those who need a short-term vehicle solution. While it may involve higher monthly payments and limited availability, the benefits of flexibility and lower commitment can outweigh the drawbacks for many people. By contacting multiple dealers, exploring lease transfer services, and negotiating terms, you can find a short-term rental that fits your needs.
