When shopping for a newer used car truck, you may consider leasing as an option, and you may even consider a long term car lease. However, for the most part, long term leases are generally not a good idea, as they expose you to added risk at the end of the lease. Most of the time, new cars are leased for a period of not more than 36 months, and the most common term for leases is about 24 months. However, there are a couple of minor advantages to using a long term lease.
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Lower Monthly Payments
One advantage of leasing a vehicle for a longer term of more than 36 months is the advantage of having to make smaller monthly payments. While leasing a vehicle almost always ensures lower monthly car payments than a traditional car loan, long term leases usually provide for even smaller monthly payments. Therefore, if your primary concern is the smallest monthly payment available, then a long term lease may work for you.
Increased Mileage Allowance
If you lease a vehicle under a long term lease, then your mileage allowance for allotment will generally be increased accordingly. Typical leases allow for a driver to use or drive the car for about 12,000 to 15,000 miles per year. Therefore if you lease a vehicle for 24 months, you will usually have a mileage allowance of between 24,000 and 30,000 miles. But, if you choose a 48 month lease you will have a driving a mileage allowance of 48,000 to 60,000 miles.
If you use the car in spurts or on occasion, but drive a lot when you do. The longer term lease may be suitable for you. In fact, many people that lease a vehicle even for shorter periods are required to pick and choose when they asked inside the vehicle, so they don't exceed their mileage allowances. Always remember though that if you go over the allotted mileage allowance, you will generally have to pay hefty fees or penalties for doing so.
While there are a couple of advantages to a longer term car lease, it's not always a good idea. In fact, the potential dangers usually outweigh the advantages that using a longer car lease may offer. If you choose to lease a vehicle for longer period of time, be aware that getting out of the lease may be difficult. In addition, you may be required to make significant repairs to the vehicle before you're allowed to turn it in to the leasing company. Many leasing companies require that certain parts of the car be in good condition, before they will accept the return of the vehicle. Common types of things that may need to be repaired or replaced will be tires and car batteries. On today's newer vehicles, these can be quite expensive.