Car Lease Term: How To Choose Your Length

Drivers who are looking at leasing a vehicle will need to think about their car lease term. The term of a car lease, the amount of time a driver will borrow the vehicle, will be important in figuring out specific lending arrangements. Here are some things to think about when choosing a long term or short term car lease.

How long do you need the vehicle? - Obviously, a factor in a car lease is knowing what length of time you want to be driving a specific vehicle, as most conventional leases lock the borrower in for a certain amount of time.

Are you subleasing? - A lot of drivers will be looking to take over a lease, or looking to get out of the lease term early without paying penalties. In these kinds of situations, a short-term lease is often more desirable.

How do your warranties factor in? - If the lender is offering a specific period of time where a warranty applies to a vehicle, that will probably be a good recommended length for lease term. Talk to your lender or leasing company about what specific parts and labor warranties apply.

What about gap insurance? - Gap insurance is an extra kind of insurance policy that you take out on a vehicle to ensure the difference between what is invested in a vehicle and what its market value is. Gap insurance is often necessary for a leased vehicle, but as the vehicle depreciates, the gap insurance will no longer be necessary. A savvy driver can look at the gap insurance requirements and make a decision on the car lease term accordingly.

These are just a few things to consider when thinking about your custom lease options and talking to the leasing company about what is available to you.