Short-Term Car Leases are becoming more and more popular, especially in these times of uncertainty, Brexit and Coronavirus has made people and businesses re-think their lifestyles and business models.
A Short-Term Car Lease is an ideal solution for those who don’t want to commit to a 2 or 3 year contract, they are also great for those who have short-term projects, probation staff or have a seasonal business.
Short-term car leasing is also ideal for those who like to swap their cars on a regular basis.
What is a Short-Term Car Lease?
Imagine a short-term car lease to be similar to a traditional car lease agreement, but over a shorter term.
Many companies offer a variety of different solutions to a short-term car lease, these include fixed short-term contracts over a 6-12 month period, flexi-rent or flexxileases which allows you to be very flexible with the amount of time you keep hold of the short-term car and then there are Car Subscriptions; imagine Netflix for vehicles allowing ou to pause, upgrade or downgrade your car with ease.
Fixed Short-Term Car Leases
A fixed short-term car lease is usually for a period of time from 6 months to 12 months. The lengths of the contracts are usually dictated by the manufacturer so you may find vehicles like BMW’s on 6 or 12 month fixed terms, where Audi and Volkswagen may be on a 6 or a 7 month Contract.
You also have to take the vehicle that is offered and you cannot change the specification of the car, some companies don’t even allow you to choose the colour and ask for a 1, 2, 3 colour preference.
They are ideal if you need to fill a gap and you know that a 6 month or 7 month car lease would work well, they are also a great solution for members of staff on probation period.
You might not even need to get the car serviced due to the timeframe and mileage parameters. Other suppliers do offer a maintenance option for true fixed cost motoring.
Flexi-rent / Long Term Car Hire / Flexi-lease
See Also; Car Subscription
Flexible Car Leases are really long term car rental agreements. Usually 28 days or longer and some companies insist that you can get a better rate when you take the vehicle for 90 or 180 days or more.
They are ideal if you need a car for a period of time but you’re not sure of the end date. Flexible is in the name and some companies call this flexi-rent or flexi-lease but they can be more expensive than the fixed short-term car leases.
If you don’t want to swap your car on a regular basis, then you need to be careful which company you choose. Over a 12 month period, you may need to go into 4 different cars. Yet, there are companies that allow you to remain in the same car for 12 months or more.
Another thing to look out for is notice periods. Some companies require a months notice or they might ask that if the month has started and you return it, you will forfeit the balance of the month.
A lot of the companies will include maintenance and generally higher mileages can be requested.
The new word for flexible car leases, but be careful what you’re signing into. Many of the biggest car subscription companies show you the price based on a set period such as 18 or 24 months, whilst you can send the car back earlierm you will pay a penalty.
A car subscription from the right provider can provide you with a car to use that includes the following:
- Vehicle Rental
- Breakdown Assistance
- Road Fund Licence
- Optional Insurance
It allows you to make one monthly payment and all you need to do is provide the fuel and where required, the insurance.
With a monthly car subscription service, many businesses allow you to pause, upgrade or downgrade with ease and there are hundreds of cars available.
How long is a Short-Term Car Lease?
Depending on the type of short-term car lease you will opt for, most short-term car leases will be for a period of 6 to 12 months, with some offering 18 month contracts.
Unless you opt for the flexible car lease, it will cost you to terminate a fixed contract earlier. And the chances of an extension will be small.
Benefits of a Short-Term Car Lease
Here are a few of the benefits of utilising a short-term car lease service:
- You are not committed to a 2/3 year lease, so you can swap or return your car earlier.
- You can have a new car on a regular basis
- Short-term car leases are usually cheaper than using Daily Rental
- The vehicles are generally in-stock so delivery can be quick
- Fixed cost motoring if you opt for an all-in agreement
- Use your own insurance to keep costs down
- Optional maintenance for peace of mind
- Road tax is included
- Great for business owners
- Ideal for new-start businesses
- Generally lower upfront payments
What are the dis-advantages of a Short-Term Car Lease?
Here are a few of the con’s when it comes to a short-term car lease:
- Mileage restrictions with excess mileage chargers being higher than a standard contract.
- Return conditions can be much stricter than a traditional 2/3 year car lease
- Fixed contracts cannot be cancelled without a penalty
- More expensive than traditional car lease agreements
- Insurance can sometimes prove difficult to sort on a shorter-term vehicle lease
- Some vehicles require regular swapping when they put them on flexible car leases.
Who can apply for a Short-Term Car Lease?
Anyone over the age of 18 and can pass a credit check is eligible to get a short-term car lease, with some companies even offering their services to Non-Status and New Start Businesses.
They are open to all company types including PLC, Ltd, Partnerships and Sole Traders. Many short-term car lease firms also allow accounts and credit limits to make ordering additional cars easy.
Why opt for a Short-Term Car Lease?
Here are a few ideas on how and when a short-term car lease would work for you:
- You have ordered a car which is on factory order and you need a car until its delivered.
- Probation period staff, enabling you to see if the member of staff works out before committing to a longer term lease.
- You like to change your car on a regular basis.
- You want something sporty for the summer but an SUV for the winter.
- Short term work projects where you need to expand a fleet quickly.
- You want lower upfront payments
- You want to do higher mileage and are worried about the maintenance side of the vehicles upkeep.
- You have just started a business and need a car
- You want to offer staff incentives by offering a car as an option.
- Expat car lease where you are coming to the UK but you cannot get a car via the traditional methods.
How to get the best short-term car lease deal?
Complete our form on the website and we will pass you to the most relevant broker for providing short-term car leases or car subscriptions.
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