A short-term car lease can be an alternative for drivers who don’t want to commit to keeping the same set of wheels for a typical 3-year lease. However, leases lasting less than 24 months are uncommon because most car dealerships don’t offer them. However, there are options for people who have situations when it’s necessary to lease a vehicle for a relatively short period.
Read on to learn about short-term car leasing to help you decide if it’s a good choice for you.
- What Is a Short-Term Car Lease?
- Why Get Short-Term Car Leases?
- How To Find a Short-Term Car Lease?
- Is a Short-Term Car Lease Worth It?
What Is a Short-Term Car Lease?
A short-term car lease is similar to a conventional auto lease, except the time commitment isn’t as long. You pay a monthly fee to use the vehicle under the contract terms for the lease period. You do not build equity in the car during that time, and you return the vehicle at lease-end unless you purchase it.
There isn’t a textbook definition for the length of a short-term lease. The minimum term for traditional new-car leases is 24 months, so it’s safe to say that any contract lasting less than two years is a short-term lease.
Why Get Short-Term Leases?
Drivers might find short-term leasing attractive for several reasons. Some people like switching cars more frequently than traditional lease agreements permit. However, short leases can be a solution when circumstances require using a car for three months, one year, or sometime in between.
Having a short-term vehicle lease can be beneficial during temporary situations like these:
- Lengthy out-of-town work assignment
- Long test drive of a specific model or vehicle type
- College enrollment away from home
- Special family needs
Can I Get a 3-Month Car Lease?
A long-term car rental is likely the best option to satisfy transportation needs for three months.
What’s the Shortest Time You Can Lease a Car?
The shortest auto lease from dealerships is 24 months. You might be able to take over a current lease that has fewer months remaining in the contract. Read more about that below. Short-term car leasing can refer to an agreement lasting three months to less than two years.
How to Find a Short-Term Car Lease
You have fewer options to lease a car for a shorter term than a regular lease.
Lease Takeover
People sometimes need to get out of their lease agreement before it ends. Most carmakers will allow someone else to assume the lease from the original lessee. Third-party marketplaces such as LeaseTrader.com (not affiliated with Autotrader) and SwapALease.com connect current lessees with people seeking shorter lease terms.
A lease transfer lets you avoid some typical fees required to start a lease, but you may be required to pay a relatively small down payment. Also, be prepared for the hard credit check that is usually needed. If you’re eligible to take over the lease, you’ll be responsible for all of the obligations in the original agreement.
Pay careful attention to how many miles remain in the lease’s mileage limit. If the current leaseholder has driven more than the allowance, you’ll be on the hook for any excess mileage charges.
Shortest Traditional Lease
Most leases have 36-month terms. Shorter car leases are harder to find, but if you shop around at dealerships, you might find a 24-month deal. Keep in mind that shorter leases cost more per month.
Long-Term Rental
Major car rental companies offer long-term rentals. Extended rentals typically offer lower daily rates but remain higher than the cost of taking over a lease. Long-term car rental provides the greatest flexibility because the contract doesn’t lock you into a particular timeframe. Also, a rental doesn’t have mileage restrictions like short-term car leases.
Is a Short-Term Car Lease Worth It?
Every car shopper has a different situation with unique needs. A short-term car lease might be worth it to you if mileage limits aren’t too restrictive or if long-term car rental costs are beyond your budget. Use our car lease calculator to help you gauge affordability and compare monthly lease costs to auto loan expenses.
Editor’s Note: This article has been updated since its initial publication.
