Short-term car lease contracts offer a flexible and convenient option for people who need a vehicle for a limited period of time, typically ranging from a few months to a year. These contracts offer several advantages over traditional long-term lease contracts and can be an excellent solution for a variety of situations.
What is a Short Term Car Leases?
A short-term car lease is a lease that is shorter in duration than the typical 24- to 36-month lease term. These leases can be as short as a few months and typically do not exceed a year. Short-term leases can be particularly useful for temporary jobs, travel, or people who prefer not to commit to a long-term lease.
How Short-Term Car Leases Work
Short-term car lease contracts typically include a monthly payment, mileage limits, and an option for insurance coverage. The terms are similar to traditional lease contracts, but are designed for shorter periods.
While traditional lease contracts are cost-effective for long-term use, short-term lease contracts provide greater flexibility at a higher monthly cost. They are ideal for those who do not want to commit to a long-term financial obligation.
Types of Short-Term Car Leases
New Car Short-Term Leases
Some dealerships and manufacturers offer short-term leases on new cars, often as part of special promotions or programs. These leases usually feature the latest models and often include manufacturer warranties.
Lease Transfers
Platforms like Swapalease and LeaseTrader make it easy to take over an existing lease with a shorter remaining term. This can be a budget-friendly way to get into a short-term lease.
Subleases
In some cases, individuals sublease their leased cars to others for a short period. Subleasing offers flexibility and may help you save money.
Pros and Cons of Short-Term Car Lease
Short-term auto leases have both benefits and drawbacks to consider.
Pros of Short-Term Car Leases
Short-term leases are not very common, but getting one is pretty much the same as signing a regular lease.
Research your options: Look for a dealer that offers short-term leases or is open to negotiating one. Make sure they have the type of vehicle you want to drive.
Negotiate the lease: Besides securing a short-term lease, be sure to discuss and negotiate lease terms and other important details like the disposition fee, mileage limits, and the sale price.
Compare offers: If you find multiple short-term lease deals, compare them carefully. Pay attention to monthly payments and fees at the end of the lease, as they can affect the total cost.
Avoid common mistakes: Always know your monthly payment upfront, and be ready to negotiate. Also, estimate how much you’ll drive to avoid any surprises during the lease.
Cons of Short-Term Car Leases
Short-term leases can be hard to find: These leases aren’t as common as standard ones with longer terms (24 to 48 months). You may need to contact several dealerships or leasing companies to find short-term options nearby.
Higher monthly payments: Generally, longer lease terms mean lower monthly payments. So, with a shorter lease, your monthly payments will likely be higher.
More insurance required: Leasing companies usually require comprehensive, collision, and gap insurance on leased cars, which adds to your costs.
Additional fees: Leasing companies may charge various fees, such as acquisition fees, disposition fees, and sales tax. You might also face extra charges if you exceed your mileage limits or cause wear and tear on the car.
When You Should Consider a Short-Term Car Lease
Short-term car leases can be a great option for a variety of situations that require flexibility and convenience. Below are a few scenarios where opting for a short-term lease may be the best choice:
1. Temporary Assignments
If you have a work assignment in a different city or country for a few months or a year, a short-term lease can provide you with reliable transportation without the long-term commitment.
Interns who are in a new location for a limited period may find short-term leases ideal for their transportation needs.
2. Travel and Relocation
If you are traveling for an extended period and need a car during that time, a short-term lease may be more economical and convenient than leasing.
People moving to a new city may prefer a short-term lease while they get settled and decide on a more permanent vehicle solution.
3. Test Drive New Vehicles
If you’re interested in a particular make or model but aren’t ready to commit to a long-term lease or purchase, a short-term lease allows you to test drive the vehicle for a few months.
Car enthusiasts who enjoy driving the latest models can benefit from short-term leases to frequently upgrade their vehicles.
4. Seasonal Needs
People with seasonal jobs that require transportation, such as farm workers or seasonal employees on vacation, may find short-term leases more practical.
If you only need a vehicle for specific seasons, such as a summer or winter vacation home, a short-term lease can meet your needs without commitments year-round.
5. Financial Considerations
If you’re on a budget but need a car for a short period, a short-term lease may be more affordable than buying a vehicle outright.
People with uncertain financial situations, such as those between jobs, may prefer the smaller commitment of a short-term lease.
6. Special Occasions
If you need a car for a special event or occasion, such as a wedding or business trip, a short-term lease agreement can provide a convenient and stylish transportation solution.
Having visitors from out of town? A short-term lease agreement can ensure they have a vehicle to use during your stay without the hassles of long-term arrangements.
Alternatives to Short-Term Car Leases
Leasing isn’t the only option when you need a car for less than 24 months. Here are some alternatives to consider.
Long-Term Car Rental
Many car rental companies, such as Avis, Budget, Enterprise, and Hertz, offer long-term rentals at discounted rates compared to daily rentals. For example, Budget offers long-term rentals ranging from one to 11 months, with the option to add months as needed. Long-term car rental plans often include preventive maintenance options and car insurance. They typically don’t have the mileage limits or upfront fees that short-term car rentals do.
Car Subscription Service
Car subscription services, such as FINN, Flexcar, Hyundai Evolve, Porsche Drive, and Sixt, which tout their flexibility and convenience, often give you the option to drive any vehicle on a month-to-month basis in exchange for a subscription fee. Car subscription services can cover maintenance, wear and tear, and insurance, and even offer 24/7 roadside assistance.
Plan a lease exchange
A riskier option is to sign a 24-month car lease and use a lease takeover or exchange to transfer the lease to another party before the term ends. However, there’s no guarantee you’ll find someone to take over the lease, which could leave you torn between keeping a car you don’t want and paying an early termination fee to end the lease.
How To Find the Right Short-Term Lease
While short-term rental agreements are not common, the process for getting one is functionally the same as a standard lease.
Research your options: Look for a dealer that offers short-term lease agreements or is willing to negotiate. And of course, look for a dealer that has the type of vehicle you want to drive.
Negotiate the lease: In addition to securing a short-term lease, negotiate common costs such as the disposition fee, mileage allowance, and sales price.
Compare deals: If you can find multiple short-term lease deals, compare them carefully. The monthly payment and lease termination fees will affect the total cost.
Most importantly, avoid common leasing mistakes. You should always know how much your monthly payment will cost and be prepared to negotiate and estimate how much you will drive when signing a short-term lease.
Bottom Line
Short-term car lease contracts offer flexibility, convenience, and the opportunity to drive newer vehicles without a long-term commitment. By understanding the benefits and considerations, researching the available options, and negotiating favorable terms, you can find a short-term lease contract that fits your needs and lifestyle.
FAQs
What is the minimum length of a short-term car leasing contract?
Most short-term leasing contracts start within 30 days, although the length varies by company.
Are short-term rental contracts more expensive than renting a car?
They can be, especially for shorter periods, but they offer more flexibility for longer periods.
Can I rent a luxury car for a short period?
Yes, some companies offer luxury cars for short-term rentals, but availability can be limited.
What happens if I exceed the mileage limit on a short-term rental contract?
Going over the limit usually results in additional mileage charges, so it’s best to stay within the agreed-upon limits.
Are there penalties for ending a short-term rental agreement early?
Yes, early termination can result in penalties, so review your contract carefully before signing.
