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Short term car lease
Short term car leasing is usually available for 3-12 month periods although there are a few companies that lease cars for 28 days as well. This is opposed to the standard 2-3 year contract for long term car leasing. The way this works is by getting you to stick to an agreed mileage limit, then the difference of the value of the car at the beginning and then the end of the lease period is calculated and payment is made for the difference. If you go over the agreed mileage limit, you will need to pay a penalty; so business customers should calculate carefully before agreeing a limit. Unlike long term car leasing. when the short contract is finished you just pay and leave, whereas long term leasing means you have the option to pay a final amount before making the car legally yours.
Advantages of leasing a car on a short term basis
- Better vehicles will be offered and vehicles that were not affordable for you before may become available to you, so you could be driving a top of the range car that would be otherwise unaffordable.
- Fixed monthly billing means that you can budget better as you know what the total amount will be debited from your account monthly, as when you use your own car the mileage and miles covered will vary so the costs will too.
- More flexibility as you can choose leases that are as short as 28 days but can be extended when you near the end of the contract
- If your vehicle needs change on a regular basis such as hiring staff on a short term basis then having a short term lease is ideal as you won’t be stuck in a long term contract
As with everything, there are disadvantages of short term car leasing as well. You will save more money with long term car leases as cars lose a lot of its value within the first year, so having a long term car lease will provide better financial gain in the long run. Short term car leasing is ideal if you work on a contract basis and your vehicle needs change on a regular basis. It’s also ideal if you need to change your vehicle on a regular basis such as a car for a few months, then a van for another few months as you can change your car type when your contract ends and you start a new one.
The best thing to do when looking for a short term car lease is finding the best quote available. Looking for things such as no penalty for exceeding agreed mileage and car leasing packages that include maintenance will save you money. So look out for any hidden extras you have to pay before agreeing to a contract.