What to know about short-term car leases Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by offering you financial calculators and interactive tools as well as publishing unique and impartial content. This allows you to conduct research and compare data for free and help you make sound financial decisions. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The deals that are displayed on this site are from companies that compensate us. This compensation can affect the way and where products appear on this site, including for instance, the sequence in which they be listed within the categories of listing in the event that they are not permitted by law. Our loan products, such as mortgages and home equity and other products for home loans. But this compensation does not influence the content we publish or the reviews you see on this site. We do not include the entire universe of businesses or financial deals that could be available to you. SHARE: Smederevac/Getty Images
3 min read Published June 27, 2022
The article was written by Josephine Nesbit Written by Josephine Nesbit is a former writer for Bankrate. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are committed to helping readers gain confidence to manage their finances with precise, well-researched and well-written information that breaks down otherwise complex subjects into digestible pieces. The Bankrate promises
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There are money-related questions. Bankrate has answers. Our experts have been helping you master your money for over four years. We strive to continuously provide our readers with the professional advice and tools required to succeed throughout life’s financial journey. Bankrate adheres to a strict code of conduct standard of conduct, so you can rest assured that our content is honest and precise. Our award-winning editors, reporters and editors create honest and accurate content to help you make the right financial choices. The content created by our editorial team is objective, factual and is not influenced by our advertisers. We’re honest about the ways we’re able to bring quality content, competitive rates and useful tools to you , by describing how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated for the promotion of sponsored goods and, services, or by you clicking on specific links on our website. So, this compensation can affect the way, location and in what order items appear within listing categories, except where prohibited by law. This is the case for our mortgage, home equity and other products for home loans. Other factors, such as our own proprietary website rules and whether or not a product is available in your area or at your own personal credit score could also affect the manner in which products appear on this site. We strive to offer the most diverse selection of products, Bankrate does not include details about every financial or credit product or service. Car leases are one type of financing for cars that permits the user to drive a vehicle or truck for a specified period of time and number of miles. The majority of leases last for three or more years, a shorter-term lease allows consumers to lease a car for just a few months, and for up to two years. These kinds of leases aren’t as popular however they can be a great option if you need a vehicle for a brief time. What a short-term car lease is similar to a regular car lease, except it offers a much shorter term. While there’s no official regulation that specifies the exact length of a lease for a car with a short term generally speaking, experts recommend 24 months or less. The traditional car lease typically includes a three-year or four-year lease. Some people find that the traditional car lease is longer than they want to commit to a specific vehicle, making a short-term lease a viable alternative. It is for instance, if you require a short-term need, for example, such as leaving town to work, or simply want to test drive a car for a short period of time. Because the term is shorter than a traditional lease and the payments per month are generally higher with this type of contract. Even though it’s short-term, they typically require paying sales taxes and fees in many states. Three short-term lease options for cars There are several short-term lease options for cars to select from, each with each having its own pros and cons. 1. Transfer the lease of someone else. You could do this for a few months. The majority of automakers will permit a third party to take over the original leasee who wishes to out of their lease. While this type of transaction could be done between two individuals but it’s more convenient to utilize third-party companies such as SwapALease or LeaseTrader since they are specialized in pairing current lessees and those seeking a short-term vehicle lease. The short-term lease you can get through a lease transfer allows you to avoid having to make a down payment. The monthly lease payment would be the amount that the initial lessee agreed to at the time they began their lease. 2. Find a long-term rental rental car companies also offer long-term rental options, which are effectively short-term or called “mini leases.” This option has some advantages and disadvantages to be considered. Flexibility: Since these are car rentals and not leases, you’re not locked into a contract and can return the vehicle at any time. No mileage limits — most of the time: Unlike when choosing to lease a car, there are usually no mileage restrictions when you opt for an extended-term rental. But this may not be the case all the time especially with regards to vehicles that are specially designed. You can change cars at any time: Car rental companies often permit renters to swap vehicles during their rental period which gives you the option to take a trip in more than one car. Costlier: On the downside however, even though the prices are lower than a normal car rental for a few days or a week, long-term car rentals can be more expensive than lease-takeovers. 3. Traditional leases You could also get an old-fashioned car lease with a shorter duration. However, the shorter the lease the more difficult it is to find. You might have to look at several dealers. Car leases with longer terms generally include more lease offers from automakers. If vehicles aren’t selling as well or are nearing at the conclusion of manufacturing cycles, manufacturers try to increase sales by offering special lease offers that come with lower costs. There are a lot more 36-month lease deals than deals for 24-months. If you select a traditional lease with a shorter timeframe for example, two years, your monthly payment will be higher since you’re dispersing the cost of the lease across a shorter time. The bottom line is that a short-term car lease is an attractive option if you don’t want to be tied to a specific kind of vehicle for an extended period of time or are in need of a temporary vehicle. Keep in mind, however that shorter-term leases usually come with higher prices. Before deciding on a short-term car lease choose the most competitive contract and compare the costs with longer-term rental options, too. Discover more SHARE:
Writer: Josephine Nesbit is a former contributor to Bankrate. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers to manage their finances by providing clear, well-researched information that breaks down complex subjects into bite-sized pieces.
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