Short-Term Car Leasing: A Flexible Way to Drive a New Car
In Australia, short-term leases are gaining popularity, with providers offering more flexibility than traditional car financing options.13 March, 2023
If you want to drive a new car without the heavy burden of upfront costs and long-term commitment, then short-term car leasing might be the perfect solution for you. In Australia, short-term leases are gaining popularity, with providers offering more flexibility than traditional car financing options.
What is a short-term car lease?
A short-term car lease is a rental agreement that allows you to use a vehicle for a certain period, usually less than 12 months. Unlike long-term leases, you never own the car and monthly payments do not contribute to your ownership of the vehicle. Instead, the car is returned to the provider when the lease period ends.
What are the benefits?
Short-term car leases have many advantages, including lower upfront costs, flexibility, and the ability to try out a new car every month or every other month. Short-term leasing also allows you to have access to a new car when you need it most, such as when your other car is being serviced. Some short-term leases also include maintenance and servicing costs in the agreement, making it a form of car subscription.
What are the disadvantages?
Short-term leases are generally more expensive than long-term leases, and the selection of cars may be limited. Some providers also offer smaller mileage allowances, and additional mileage can be costly. Your credit score and history also affect the type of lease deal you can secure.
Why lease a car for less than one year?
Short-term car leases are suitable for those who don't plan on keeping a car for a long time or who want to drive a variety of vehicles without the commitment of long-term ownership. They are also ideal for those who are uncertain about their personal circumstances, such as if they plan to move to a new location soon.
How does a short-term car lease work?
Short-term car leasing works like an extended rental. You make regular monthly payments over the course of your agreement, and the amount you pay depends on the car, pre-agreed mileage, and the length of the lease. When the lease ends, you can choose to swap the car for a different one or return it to the provider.
What is included in a short-term car lease?
Under most leasing agreements, you are responsible for paying the cost of any repairs to your car during the lease period. Some providers offer maintenance packages that cover scheduled vehicle servicing, yearly MOT, car consumables, mechanical and electrical repairs, and roadside assistance. However, this varies between providers, and all-inclusive packages are more commonly found in car subscription plans.
What are the alternatives?
If short-term car leasing is not for you, there are other options available. Car subscriptions offer a similar experience, where all costs, including tax, insurance, servicing, maintenance, and breakdown cover, are included in one all-inclusive payment. Ultimately, the choice depends on your personal preferences and circumstances.
In conclusion, short-term car leasing offers flexibility and access to new cars without the heavy burden of long-term commitment. With the popularity of short-term leasing growing in Australia, it is worth considering if you are in the market for a new car.