A short-term car lease typically lasts for 36 months, whereas, a long-term car rental is a 60-month arrangement. Owing to the structuring of the auto lease, the amount you have to pay during the lease tenure remains the same whether you go with a short-term or long-term car lease.
But, due to the interest charges — commonly known as the money factor in auto lease terminology — and the greater chances of depreciation in the long run. As a result, a short-term auto lease ultimately proves less costly, provided you take good care of the vehicle.
However, when it comes to choosing between a long-term and short-term car lease, you need to consider other factors too. Below we at QuitALease have shed light on this subject in detail.
What Most of Us Don’t Know?
Generally, most auto leases start out at two years or 24 months in length. From there, these contracts go up to five or six years usually as marketed in ads or on televisions. However, what most of us don’t know is that a short-term car lease is actually a ‘takeover’ kind of lease.
The way it works is that a person who has already leased a car wants to terminate their lease early without taking any penalty offers up their lease on QuitALease or another lease transfer platform so someone can assume or take over their lease.
Once someone assumes their lease, the original lessee is no longer accountable for the car and monthly payments. Now it’s the responsibility of the new lessee to make the remaining payments.
Why People Opt for Short-Term Car Leases?
Taking over a car lease is a common thing and there are a few solid reasons why people pursue one. If a person is on a temporary job, he or she may need a short-term car lease. Likewise, if someone needs a vehicle for less than eight months or a year, assuming a car lease is their best bet.
Another reason could be, you are on a military deployment and need a vehicle while you are in another place. One option that is often overlooked by many is when you just want a test drive for a while.
However, there are others who want more than just a test drive in order to see how a specific car drives in different conditions. This way they don’t have to pay a down payment and they can drive their favorite car by paying small monthly payments.
How Do Long Term Car Leases Work?
A long-term auto lease generally lasts longer than 24 months. In many cases, it could be three, four, and even five years long. Though three to four years is the average time period of an auto lease.
The monthly installments for a long-term car lease are substantially lower than the monthly installments for the purchase of the same vehicle. This is what makes long-term car leases more attractive.
However, keep in view that other monthly expenses associated with a leased vehicle can make it slightly more expensive than a car purchase, predominantly insurance. In most cases, a leased vehicle not only requires liability insurance, but also comprehensive and collision with a zero deductible. Together, all of this can be expensive.
Why People Opt for Long Term Rentals?
Long term car leases are suitable for businesses looking to get the maximum benefit out of their cars for the minimum investment. The ideal arrangement is also popular among those who are in need of a simple, cost-effective alternative solution to keep up with the kind of ongoing maintenance that soon becomes a burden to car owners.
At QuitALease.com, you can find short-term rental periods that allows you to drive a car by conveniently managing your monthly payments. Our extensive listings will enable you to get the best lease deal.
How to Choose the Length of Your Car Rental Period?
Here are some ways to choose the length of your car lease period.
For How Long You Want to Drive the Same Vehicle?
When leasing a car, make sure to know how long you need the vehicle or want to drive a specific car. Why? Because conventional leases bound the borrowers for a certain period of time. And once it’s in black and white you won’t be able to change the lease period.
Are You Looking to Take Over a Car Lease?
A lot of people will be looking forward to assuming an auto lease or thinking to get out of their lease contract early without bearing any penalties. In these situations, QuitALease is the best place to find ideal lease deals on your favorite cars so you can drive one without breaking your bank.
See Also: A quick guide to taking over someone car lease.
What warranties apply to the car?
If the lender is giving an attractive offer for a limited period of time where a warranty applies to a car, then there is no harm in opting for a good length of lease term. Talk to your leasing firm or lender about the specific parts and labor warranties that apply.
Do You Know About Gap Insurance?
It’s an extra kind of insurance policy you typically pay on a vehicle to cover the difference between what is invested in a car and what its market value is. In most cases of car leasing, Gap insurance is necessary.
However, Gap insurance isn’t necessary when the value of the car begins to depreciate. Savvy drivers take Gap insurance requirements into account and then make a decision on the vehicle lease term accordingly.
These are a few things to consider when mulling over your lease options and talking to leasing firms about what is available to you.