A short-term car lease is a contract that you engage in with a leasing firm or dealership to pay for a portion of the value of a vehicle for a certain amount of time. This kind of car lease is comparable to other types of car leases. The difference between a regular lease term of two to five years and a short-term automobile leasing term is that the latter often lasts for less than two years, with the maximum time being two years.

How Does It Work to Lease a Car for a Short Term?

Purchasing a vehicle is an option to consider if you anticipate having a prolonged need for transportation. Visit an automobile rental firm if you need one for many days. If, on the other hand, you believe that you will need your own set of wheels for the next several years, you can consider leasing a car. A conventional automobile lease typically lasts between 24 and 60 months.

On the other hand, the conventional duration of a lease may be a lengthier commitment for some people than they are comfortable making to a certain brand and model of a car. You may only need a car for a year or two, or perhaps just a few months, due to circumstances such as getting temporary work in a new place or dealing with a family emergency. An automobile lease for two years or less, considered to be short-term, may be desirable in this situation.

You agree with the leasing company that you will pay them a certain sum each month in exchange for the right to drive an automobile for the duration of the lease for a maximum of a predetermined number of miles, which is often about 15,000 miles per year. Your auto lease payment will be based on several criteria, such as the agreed-upon value of the vehicle at the beginning of the lease, financing costs, capitalized cost reductions (such as a down payment), the length of the lease period, and the residual value of the vehicle after the lease.

Types of Short-Term Car Leases

Conventional Lease

This sort of lease performs the same responsibilities as a standard lease but comes with a shorter duration of two years or less. This type of lease may be obtained via leasing firms or dealerships. Although leases of this kind do exist, it might be challenging to locate them. If you successfully find such a lease, the monthly payment may be higher than what you would pay for a conventional lease, which, according to data provided by Experian for the first quarter of 2020, averages $466. However, this number can vary depending on the type of vehicle and the area in which you live. Because the lessor may use the same residual value for a lease of a long time as that for a shorter one. However, if the period is shortened, the depreciation charges will spread over a smaller number of months, resulting in higher monthly payments.

To get a lease, prospective lessees are often required to have their credit checked, make a down payment, and pay a security deposit. Additionally, lessees are obligated to acquire vehicle registration and insurance and conduct routine maintenance on the leased vehicle. Suppose you decide to stop the lease early or return the vehicle with damage. In that case, you may additionally be responsible for paying costs for early termination and fines for excessive wear and tear.

Mini Lease

"Mini leases" are long-term rentals that normally run anywhere from a few weeks to 11 months and are offered by many automobile rental businesses. Mini leases may last anywhere from a few weeks to 11 months. Although you may be required to pay a security deposit, the rental company will normally take care of the vehicle's insurance, registration, and maintenance. Some rental companies even enable clients to evade mileage limitations and switch automobiles throughout the rental term. However, these comforts come at a greater price: the monthly cost of renting a medium car may range anywhere from $700 to more than $1,500, depending on the size of the vehicle.

Lease Swap

You "take over" another person's lease when you engage. This means that you are responsible for adhering to the mileage limitations and any other restrictions that come with the current lease. However, you will be required to fulfill the same credit requirement as the previous lease owner did. You will probably spend less per month than you would for a long-term rental, and you may only have to keep the vehicle for a few months or a year if you can find someone willing to switch with you. This is assuming that you can find someone willing to exchange.