Long-Term Vs. Short-Term Private Car Lease

Posted on Aug 17 2013 - 2:35pm by Bernard Berry

Cars

In the process of deciding on embracing a private car lease idea, one needs to determine whether it will be a short-term or long-term one. A short-term car lease would go from three months to a year with some exceptions of getting a one-month deal. A long-term lease will be from two to four years. All leases work with major principles of following the rules in the contract and after the leased duration, you hand back the car.

The benefits of a short-term private car lease include actually taking pleasure in riding different cars. One will enjoy changing the type of cars and with time, one will have had a taste on each of the brands. For a family adventure and comfort, you can drive Toyota Verso, Toyota Sienna, Toyota Prius family and so many more models. For Toyota Verso, it offers safety on the road and includes several seating provisions. It has amenities like the air-con, satellite map reading and the seating is comfortable for everyone. Still, one can enjoy the keyless entrance mode for absolute safety. The Sienna model is also a suitable family car that one gets to try out on a short-term lease and enjoy the spacious room that is enough for stretching the legs which reduces numb effects of driving.

A short-term car lease has benefits like the one-year depreciation gain. It is known that most of the depreciation will take place in the duration of a year. Taking a short-term private car lease of an already leased car will reduce the depreciation charges since most short-term leases are usually from another leasing client. One is not obligated to pay the down payment since the main lessee had already paid it. One can also enjoy the benefits of leasing the car in the period of warranty existence since the owner will cover most repairs and maintenance. A short-term lease, however, has the downside that includes operating the car under a firm mileage boundary which makes you liable to fines and penalties if exceeded. It can be costly in terms of the monthly payments.

One the other hand, not everyone wants to drive the latest cars or keep changing brands. If, for instance, you enjoy some unique benefits of a particular car then long-term leasing will be better. You can benefit from the affordable monthly payments that are common with the long-term leasing. With long-term leasing one can also gain from the increased mileage that most companies offer. The first year mileage could be about 12,000-15000 miles which increases gradually as one passes from one year of lease to the next. The disadvantage of a long-term private car lease will include the difficulties in terminating a lease deal before the leasing duration, costly repairs and returning the vehicle in perfect condition.

A short-term private car lease (or as they call it “Lease bil privat” in danish) is good for individuals who do not drive a lot and use other means of transport. It is also good for companies that have unpredictable schedules and will need to lease cars for the employees. A long-term car lease is better for those who drive a lot and need affordable monthly payments. Whichever private lease term you decide on, the most important thing is to shop around for the best of deals in order to enjoy the lease.

Photo Credit: Flickr/JOHN LLOYD

About the Author

Bernard Berry is a car mechanic with 30 years of experience in the car maintenance. He is also a writer for different car affiliated websites such as the danish Volkswagen cars. Many of his articles are dedicated to the financial value of keeping an old car running and the benefits of buying a new car.

  • Sean Carter

    its always a interesting situation to come across, I have found if you do your research and find the best leases for what you need, you can really find some great closed end leasing deals that make it all worthwhile

  • Cyrusmiley

    I just like to buy not lease. I get a nice small car like a mini I would buy one again.They have plenty of quality cars for sale trucks too