Short-Term Car Leases: What To Know
Don’t want to spend a fortune on a car lease when you just need a vehicle for a few months?
A short-term lease may be the best option for drivers who don’t want a typical three-year lease contract. You can get one from a dealer or even take over someone else’s lease.
While the lease payments tend to be higher, the smaller time commitment can be ideal if you’re unsure about your plans.
Key takeaways
- Short-term leases last less than two years — often just 3-12 months.
- You can also take over someone else’s lease for whatever time remains.
- A short-term car lease might be more budget friendly if you need a car for just a limited time.
- But a shorter lease can have higher monthly payments, and like other leases, there are often mileage limits.
What is a short-term car lease?
A short-term car lease works just like a traditional auto lease: You sign an agreement with a lender to pay a certain amount each month to drive the car for the duration of the lease.
With a short-term car lease, you have the flexibility to make an early exit so that you aren’t stuck in the contract for longer than you need. This can be great for summer interns in a new city, workers on a temporary assignment or even drivers who want to try out a certain car before committing.
While standard car leases usually range between two and four years, short-term car leases tend to last only a few months — though some run up to a year or two.
Like with longer leases, a short-term car lease involves monthly payments for the duration of your contract. Once the lease ends, you must return the vehicle to your dealer, unless you choose to buy the leased vehicle.
Pros and cons of short-term car leases
While short-term leasing has some advantages, you’ll still face the same contractual obligations as a traditional auto lease.
| Pros | Cons |
|---|---|
Good temporary option: If you need a vehicle for just a few months, a short-term lease may be more cost-effective than renting a car. Ability to drive new models: A short-term lease lets you try out new cars. You can see how much you like a certain new model before buying it. Short-term commitment: A short-term lease can also be ideal if you’re simply not sure how long you want the car and prefer to keep your options open. | Payments higher than traditional leasing: Shorter lease terms usually have higher monthly payments, even though you’ll be paying them for a shorter time. Comes with fees: If you take over someone else’s lease, you’re responsible for the taxes and any fees. Also, if you take a loan to take over a lease, you’ll have to pay interest. Will have mileage limits: All lease agreements, whether short-term or long-term, generally limit the number of miles you can drive. If you go over the mileage cap, then you’ll be penalized with extra costs. |
How to get a short-term car lease
There are a few ways to get a short-term car lease. You may be able to enter one through your dealer, take over another driver’s lease or find a long-term rental service.
Get a short-term lease at a dealership
Dealerships usually offer traditional lease financing with three- or four-year terms. But if you’re willing to research dealerships and maybe do some negotiating, you could find a dealer willing to offer a shorter term. You can even find leases for used cars.
Keep in mind that leases with shorter terms often come with higher monthly payments.
Look for car dealerships that offer lease options of 24 months or less or have lease-takeover opportunities. For example, if you live in Florida or California, you could get a micro lease with a term of six or 12 months at your local AutoNation dealership.
Take over someone else’s lease
You may be able to take over another driver’s lease and have the car for the remainder of the contract, so long as the dealer agrees to it.
Trying connecting with people looking to exit their lease early by searching on sites such as LeaseTrader or Swapalease.
You will likely be expected to pay for the lease balance up front, although you can finance this amount. Still, taking out a loan will mean extra cost from the interest.
On the upside, you may be able to avoid making a down payment. In fact, if the lessee wants to get out of the lease, they might offer you a cash bonus or agree to cover transfer fees charged by the leasing company.
Plus, you might land a lower monthly payment if the original lessee made a big down payment or got better rates due to a solid credit score. Then again, you might face higher payments if the original lease was expensive.
And of course, you must stick to the terms and mileage restrictions of the original contract.
Consider a long-term rental
Some car rental companies allow long-term car rentals.
For example, the Hertz Multi-Month program allows you to rent a car for a minimum of 63 days, with no mileage limits, upfront fees or disposition costs (which cover cleaning and inspection).
If you prefer a more flexible period, Enterprise will let you rent for a month or longer, with unlimited mileage except for some large or specialty vehicles. It also offers a Subscribe with Enterprise service, where you get access to a variety of vehicles, for one monthly fee, including maintenance and insurance costs. You can cancel your subscription after two months.
Some carmakers offer similar services:
- Care by Volvo charges a monthly fee that includes the car payment, maintenance and insurance coverage. You get a monthly limit of 1,250 miles and may swap the vehicle or cancel the subscription after four months.
- Porsche Drive bills you monthly at a single price for the car payment, insurance, vehicle maintenance and concierge services. If you subscribe to Porsche’s multi-vehicle plan, you can switch up your ride as many times as you’d like over the course of the month.
While you may end up paying more to rent a car through these services, you will avoid locking yourself into a long-term contract that sticks you with the car for longer than you need it.