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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 mission is to help you make better financial choices by offering you financial calculators and interactive tools, publishing original and objective content. We also allow you to conduct your own research and compare data for free to help you make financial decisions with confidence. Bankrate has partnerships with issuers including, but not limited to American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Make money The products that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they be listed within the categories of listing in the event that they are not permitted by law for our loans, mortgages,, or other products for home loans. This compensation, however, does have no impact on the information we provide, or the reviews appear on this website. We do not include the universe of companies or financial offerings that might be available to you. SHARE: Smederevac/Getty Images

3 min read Published June 27, 2022

The article was written by Josephine Nesbit Written by Josephine Nesbit was a contributor to Bankrate. The article was edited by Rhys Subitch Edited by Auto loans editor Rhys has been editing and writing for Bankrate from late 2021. They are passionate about helping readers gain the confidence to take control of their finances by providing precise, well-researched and well-written information that breaks down complex topics into manageable bites. The Bankrate promise

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If you have questions about money. Bankrate has answers. Our experts have been helping you manage your money for more than four years. We are constantly striving to give our customers the right guidance and the tools necessary to be successful throughout their financial journey. Bankrate adheres to a strict code of conduct , so you can trust that our content is honest and reliable. Our award-winning editors and journalists produce honest and reliable information to assist you in making the right financial choices. The content we create by our editorial team is objective, truthful and uninfluenced through our sponsors. We’re open about the ways we’re in a position to provide quality content, competitive rates and useful tools for you , by describing how we earn money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods and, services, or when you click on certain hyperlinks on our site. Therefore, this compensation may affect the way, location and when products appear in listing categories, except where prohibited by law. We also offer mortgage, home equity and other products for home loans. Other factors, such as our own proprietary website rules and whether a product is available in your area or at your self-selected credit score range may also influence how and where products appear on this site. Although we try to offer an array of offers, Bankrate does not include information about every credit or financial product or service. The car lease one type of financing for cars that permits the driver to use a car, truck or SUV for a specified period of time and number of miles. While most leases are for 3 or more years, a short-term lease permits consumers to lease a car for a short period of time, for up to two years. These kinds of leases are not as common but they are a viable alternative if you require a vehicle for a brief time. What a short-term car lease is a short-term car lease is similar to a standard car lease except that it is a shorter term. There’s no formal rule that stipulates the exact duration of a lease for a car with a short term, most experts say it’s 24-months or less. The traditional car lease typically comes with a three-year or four-year agreement. For some, the standard lease period is more than they want in order to sign a specific vehicle, making a short-term lease an option. For instance, if you require a short-term need, such as traveling out of town for workor simply want to test drive a car for a short period of time. Since the lease is less than traditional leases and the payments per month are generally higher with this type of contract. And even though it is short-term, they usually require sales taxes and charges in many states. Three options for short-term car leases There are many short-term car lease options to choose from, all with their own advantages and drawbacks. 1. Intake over the lease of someone else. can do this for a few months. Most auto manufacturers will let a third party take over the original lessee who wants to get out of the contract. Although this can be made between two parties but it’s more convenient to utilize third-party companies like SwapALease or LeaseTrader, because they are specialized in pairing current lessees and those seeking a short-term vehicle lease. Getting a short-term lease through the transfer of a lease allows you to avoid having to pay for a downpayment. The monthly lease payments would be the same as the original lessee negotiated for at the time they began their lease. 2. Get a long-term rental Many rental car rental companies also offer long-term rentalsthat are effectively short-term or called «mini leases.» This approach offers pros and cons to consider. Flexible: Since they are rentals of cars, not leases, you’re not locked into a lease and are able to return the car anytime. No mileage limits generally. times: Unlike when you lease a vehicle generally, there are no limitations on mileage when opting for an extended-term rental. But this may not be the norm especially with regards to special vehicles. Change cars at will Car rental companies typically permit renters to swap vehicles during their rental period which gives you the option to drive more than one vehicle. More expensive In the end, while the rates are lower than a normal car rental for only a few days or for a week, long-term rentals are typically more expensive than a lease-takeover. 3. Traditional lease You can also take out the traditional car lease, but for a shorter period. The shorter the lease, the more difficult it is to find, and you might have to look with several dealers. Longer-term car leases generally include more lease offers from automakers. When vehicles aren’t selling well or have reached the end of their manufacturing cycles, automakers try to increase sales through special lease deals with less expense. There are a lot more 36-month lease deals than deals for 24-months. If you choose an old-fashioned lease with a shorter timeframe, such as two years, the monthly payments will be much higher because you’re spread costs of your lease over a shorter term. The bottom line A short-term lease on a car can be an appealing option for those who do not want to commit to one kind of vehicle for an extended period of time or require a temporary vehicle. Keep in mind, however that shorter-term leases usually are more expensive. Before deciding on a short-term car lease choose the most cost-effective contract and compare costs with longer-term rental options, too. Discover more SHARE:

The 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 dedicated to helping their readers feel confident to control their finances through providing clear, well-researched facts that break down otherwise complicated topics into digestible pieces.

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