Car Lease Term: Short Or Long?

When choosing a car lease term, your ultimate choice will generally be largely dependent on the length of commitment you want to make.

A short term car lease is generally considered to be between 6 and 24 months. Leases less than 24 months can be found on many lease swapping websites. These sites have become a popular for individuals who want to get out of their leases and avoid the early termination fees and for people who are looking for short term leases. A 24-month lease is rarely much different from a long term lease except for the length of the lease.

A long term lease is considered to be a lease longer than 24 months. In many cases, this means 2, 3, 4 or even 5 years, although 3 to 4 years is the average length of time for a car lease. The monthly payment for a long term lease is usually substantially lower than the monthly payment for the purchase of the same car, which is why long term car leases can be very attractive.

However, it is important to note that the other monthly expenses associated with a leased car can be more expensive than a car purchase, particularly insurance. In most cases, a leased car will require not only liability insurance, but also collision and comprehensive with a zero deductible-all of which can be very expensive.

The choice of a long term lease versus a short term lease can be largely determined by the needs of the person leasing the car.