Things you should know about short-term car lease

Oct 18, 2024 By Rick Novak

Leasing a car for 6 months 2 years is known as a short-term car lease, which will allow you to lease a car for a short duration. It's not like a traditional long-term leasing in which you need to lease a car for a longer duration. Such a sort of lease is effective if you want to lease a car for a shorter period like a job assignment. 

If you don't have enough money or don't want to buy a vehicle, a short-term care lease would be a good idea. With it you can explore new places without huge investment or commitment. But remember, you have to pay more contract tax than a car lease's longer duration.

What should I know before I lease a car?

Before you lease a car, you have to understand what leasing is. It is renting a car for a short duration; after the lease period ends, you have to return the car and walk away, and you don't own it. Read the necessary details of the agreement, including all the necessary details like cost, a termination fee, or next-time purchase option. 

Understand the type of car you want and how much money you have. There is sometimes a limit for mileage, like 12,000-15,000 miles. Over that mileage, you have to pay on per mile base. Just like you, the car leases are also negotiable. Be ready for negotiation on money factors, which can influence the interest rate. 

Who should consider short term car lease?

Leasing a car for the short term would be a great idea if:

Temporary need

For example, you must complete a task and need a vehicle for school, personal, or work obligations, which means you do not have any long-term assignments. You can rent a car for the short term.

Need flexibility

If you are a person whose needs, tastes, or life is likely to change in the future, a short-term car lease offers more flexibility in the future. So you need to stick with the car that doesn't meet your future requirements. 

For test drive before buy

If you aren't unsure what sort of car will fulfill your requirements? Test drive by getting a car on the lease would help you decide whether it's a good fit before you make a purchase. 

New car lover

Are you a person who loves driving the latest mode of your favorite or has a habit of charging your car frequently? A short-term car lease will help you get and drive what you want and change it after 6 months or years without making any commitment. 

How to get a short term car lease

Here are the steps to get a car on lease for the short term:

  1. Visit dealerships: Check out local dealerships to understand terms and conditions for short-lease to get an idea of the market. 
  2. Know your budget: You have to make on-time payments monthly; make sure you have strong credits because dealers want to know clearly whether you can make payments effortlessly!
  3. Apply for lease: Once you have found the car that meets your requirements, it's time to submit your application.
  4. Put a security deposit: In most cases, you must pay a security deposit before renting a car. The security is refundable and will be returned to you at the end of the lease if the vehicle is fine without any damage.
  5. Pay fees: At the start of the lease, you must pay some fees like registration to register in your state. 

Is short term car lease is a good idea?

It's a good idea to have a car on a short-term lease, as it offers flexibility and convenience. But it's not the ultimate solution; you must consider its mileage limitations and high costs. Here are the pros and cons that will help you to make a decision:

Pros of short term car lease

The advantages of short-term car leases are:

  • No serious Investment: Without making any serious car, you can drive the car and fulfill your needs. You don't need to buy a new car; just lease a car for a short duration and get things done. But use it with care; otherwise, you have to pay for any damage to the car.
  • Enjoy a new car: Ride the latest model of your favorite car and swap it for the next one with new features after the lease ends. Short-term car leases help you upgrade to new modes faster than long-term ones.
  • Predictable Budget: With short-term, you can make payments monthly. This will help you make a better budget for fuel, fees, and other expenditures. 
  • Low Commitment: You can get a car with low commitment to do your temporary job. You can even test your favorite car to get an idea of whether it meets your lifestyle. A short-term car lease will help to make a final decision on whether it is worth investing or not.
  • Convenience: In the lease agreement, a short-term car lease includes roadside assistance and maintenance, just like renting a car. If you don't like car maintenance, this is a plus point for you. 

Cons of short term lease

The disadvantages of getting a car on a short-term lease are:

  • More costly than a traditional lease: You can expect large monthly payments on a short-term lease compared to a traditional lease. It's because of the depreciation factor that is mentioned in the lease agreement. 
  • Limited mileage: There is a mileage limit when you have a car on short term. You must follow this mileage limit. Otherwise, you have to pay additional payment when the lease contract ends. 
  • Difficult to find: Only a few rental or car dealership companies offer such a lease deal because it's less popular than traditional leases. 

The bottom line

If you want to get a car for a short duration, it's a good option to get it through a short-term car lease. You will get the vehicle to fulfill your temporary needs without making any sort of serious commitment. But you must explore local areas in your state to find the best match that suits your requirements. 

Prices in short-term leases are quite high compared to traditional long-term leases; consider your budget and other factors like transportation costs before leasing a car for the short term. The agreement for the short term is competitive compared to traditional leasing. 

A Sure Bet