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What to know about short-term car leases Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our aim is to assist you make better financial decisions by offering you interactive tools and financial calculators, publishing original and objective content. This allows users to conduct research and compare information for free – so that you can make informed financial decisions. Bankrate has partnerships with issuers such as, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site are from companies that pay us. This compensation could affect how and when products are featured on the site, such as, for example, the order in which they may be listed within the categories of listing in the event that they are not permitted by law. This applies to our loan products, such as mortgages and home equity, or other home loan products. This compensation, however, does affect the content we publish or the reviews you see on this site. We do not include the universe of companies or financial offers that may be accessible to you. SHARE: Smederevac/Getty Images

3 min read Published June 27, 2022

Writer: Josephine Nesbit Written by Josephine Nesbit is a former contributor to Bankrate. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since the end of 2021. They are committed to helping readers gain the confidence to manage their finances through providing precise, well-researched and well-written facts that break down complicated topics into bite-sized pieces. The Bankrate guarantee

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So, this compensation can affect the way, location and in what order items are listed in the event that they are not permitted by law for our mortgage home equity, mortgage and other home lending products. Other factors, like our own rules for our website and whether the product is offered in your area or at your personal credit score could also affect how and where products appear on this site. We strive to offer a wide range offers, Bankrate does not include details about every financial or credit item or product. A car lease is a type of financing for cars that permits you to drive a car, truck or SUV for a specified period of time and miles. The majority of leases last for longer than three years, a short-term car lease lets consumers contract a car lease for a short period of time, up to two years. These kinds of leases are not as common but can be a good alternative if you require an automobile for a short period. What exactly a short-term car lease is similar to a regular car lease, but it is a shorter term. While there’s no official standard that defines the length of a lease for a car with a short term generally speaking, experts recommend 24 months or less. The standard car lease usually is a three-year, or four-year agreement. Some people find that the traditional lease period is more than the time they’d like for committing to a particular vehicle, making the short-term lease a viable alternative. In the case of a are in a situation that is temporary like traveling out of town for work, or you just want to try out an automobile for a short period of time. Since the lease is less than a traditional lease and the payments per month are generally higher for this type of contract. And even though it is short-term, these leases generally require the payment of sales tax and other fees in several states. 3 short-term car lease options There are several short-term lease options for cars to pick from, each having their own advantages and drawbacks. 1. Intake over the lease of someone else. can do this for couple of months. Many auto manufacturers allow another person to from the original leasee who wishes to out of their contract. While this type of transaction could be conducted between two people, it’s easier to use a third party, such as SwapALease or LeaseTrader since they specialize in bringing current lessees with those who are looking for a short-term lease. Getting a short-term lease through the transfer of a lease lets you avoid having to make a down payment. The monthly lease payment will be the rate that the original lessee negotiated for when they started their lease term. 2. Consider a long-term lease Many rental car firms also provide long-term rentalsthat are effectively short-term or sometimes called “mini leases.” This approach has some pros and cons that you should consider. Flexibility: Because these are rentals of cars, not leases, you aren’t locked into a contract and can return the car at any time. There are no mileage limitations usually. times: Unlike when you lease a vehicle, there are usually no limitations on mileage when opting for an extended-term rental. However, this might not be the case all the time particularly when it comes to specialty vehicles. Switch cars as you please Car rental companies typically allow renters to switch cars throughout the duration of their lease and give you the chance to use more than one vehicle. Costlier However, while the rates are lower than a typical car rental cost for only a few days or for a week, long-term rentals are still typically more expensive than a lease-takeover. 3. Traditional lease You can also take out a traditional car lease but for a much shorter term. The shorter the lease, the harder it is to locate, and you will likely need to shop with several dealers. Car leases with longer terms generally include more lease offers from automakers. If cars aren’t performing well or reach close to the finish line of manufacturing cycles, automakers attempt to boost sales with special lease deals with lower costs. There are a lot more 36-month lease deals than 24-month leases. If you select traditional leases that has a shorter duration like two years, your monthly payment will be more expensive because you’re spreading the cost of the contract over a shorter term. The bottom line is that a short-term lease on a car can be an appealing option for those who don’t want to commit to one kind of vehicle over a lengthy period or you require a temporary vehicle. Keep in mind, however that shorter leases typically have higher costs. Before you decide on a short-term lease choose the most affordable contract and compare costs with long-term rental options as well. Find out more about SHARE:

Writer: Josephine Nesbit is a former contributor to Bankrate. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate since late 2021. They are committed to helping readers feel confident to take control of their finances through providing concise, well-studied information that breaks down complex topics into manageable bites.

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