When a consumer is in need of a vehicle for a short period of time, a short term car lease may be the best way to go. However, make sure to examine all the options available when considering a short term lease.
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1. Length of Contract
Due to the short period of time a consumer may need to use a vehicle, many finance companies offer cars that consumers have leased through long-term arrangements that they now wish to terminate. The minimum period for a short-term lease is generally 6 months with the maximum usually being 24 months.
2. Check out the Fees
Often, finance companies will reduce or eliminate certain document, filing, disposition and termination fees as an extra incentive when marketing short-term leasing arrangements.
3. Monthly Payments
Monthly payments may be much lower than the original lease arrangement when the vehicle has been leased for at least a year. Since payments are determined by depreciation value, the rate for the first year can be up to 30%. This allows for lease assumption at a reduced vehicle value that can benefit a consumer seeking a short-term deal.
4. No Insurance Needed
Often many fees, such as insurance, have already been satisfied and the assumer of a lease arrangement can realize additional savings.
5. Check Restrictions
Make sure to gain an understanding about any restrictions that carry over from the original lease like operating limitations and excessive mileage charges that may increase the cost of the short term lease.
Related Questions and Answers
Is Private Vehicle Leasing Different Than Car Leasing
Yes, private vehicle leasing is different than car leasing. A private vehicle lease involves taking over a car lease from another driver without contacting the finance company. For example, private vehicle leasing is a possible option if someone needs a short-term lease and does not want to rent a car. In other cases, private vehicle leasing helps drivers with some bumps in their credit histories get cars that they could not otherwise finance. In private vehicle leasing, a binding lease agreement is executed between the person who originally leased the car and the person who wants a private vehicle lease.
What are the Biggest Drawbacks to Short Term Personal Car Leasing?
The biggest drawbacks to short term personal car leasing include the potentially higher cost of personal car leasing versus a traditional car lease and the fact that short term personal car leasing does not improve your credit history, as the loan is not in your personal name. In addition, lessees may be reluctant to start a short term personal car lease with someone else. Because if payments are missed, it negatively impacts the credit history of the lessee, not the person who is driving the car. Additionally, as with any car lease, the mileage allowed by a lease is limited, so going over the allotted mileage can result in hefty overage fees.
Are there any First Time Discounts Available on Your First Vehicle Leasing?
Yes, there are occasionally first time vehicle leasing discounts available to customers leasing a vehicle for the first time. The range of discounts and leasing options available varies between finance companies. Many finance companies have first time buyer or college graduate programs that offer lower interest rates and loosened credit requirements to help first time vehicle leasing customers get into a car or truck that best fits their needs. For example, General Motors offers a college graduate discount program that offers supplier pricing on the vehicle of the first time lessee's choice. Volkswagen offers a program that guarantees credit approval for first time vehicle leasing customers who have a college degree and a job offer.