Owning a car is not a viable option for a lessee who travels abroad for a short duration, as he will have limited use for it. He may consider leasing a vehicle for a short term. Short-term leases have practical features and benefits.
What Is A Short-Term or Mini Lease?
- A driver will set up a short-term or mini-lease if he needs a car for a limited time, e.g., a few months. He will find himself in such a situation if he travels abroad for business or holiday purposes.
- If he does, he may hire a car on a temporary basis and pay a fixed monthly rental. At the end of the lease period, he can return the vehicle without any liability.
Features Of A Short-Term Lease
Short-term leases have practical features that draw applicants.
1. A flexible finance solution
- Perhaps the most attractive feature of short-term leases is their flexibility. Par Leasing offers competitive short-term lease rates that depend on an applicant’s financial situation.
- Furthermore, it offers a lessee the option of driving a car only for the time he requires it.
- There is no penalty for terminating the lease.
2. Short Term
- A distinguishing feature of a mini car lease is that it seldom lasts for more than six months.
- Moreover, a lessee will have no liability for the vehicle if he drives it carefully.
When to consider A Short-Term Lease
- A lessee may consider a short-term lease if his current contract has ended and he needs a model car for just a short time. He may also want to make such an arrangement if he enjoys switching vehicles occasionally.
- A short-term vehicle lease is also ideal for a lessee who needs a car for a one-off purpose, e.g., hosting relatives on holiday and does not need to invest in one.
- A lessee on an extended holiday will find a short-term car lease helpful. Business owners will want short-term arrangements for contract staff who will only use vehicles for a short time.
Benefits of a Short-Term Lease:
- Short-term lease rates are low.
- Mini car leases do not involve paperwork.
- Drivers can travel freely.
- Par Leasing offers roadside assistance.
- Short-term arrangements have flexible durations.
- There is less vehicle maintenance.
- Par Leasing offers a wide vehicle selection.
- Our company provides 24 hr roadside assistance.
Common Mistakes When Setting Up Short-Term Leases
Lessees may flounder when making short-term lease arrangements. They often do so on impulse. Hence, they may make these costly errors.
1. Paying too much upfront – People who make short-term lease arrangements often do so hastily because they only need to use the vehicle for a short time. Unfortunately, being impulsive puts them at some financial risk. Often, finance companies do not return lessees their upfront payments.
2. Not Buying Gap Insurance – Gap insurance may seem like an unnecessary cost, but covers the cost of a vehicle should it get destroyed or stolen. It includes the value of the car should unfortunate circumstances occur.
3. Ignoring mileage stipulations – Some financing companies may place upper limits on the mileage lessees can drive. This hidden cost may make a lease expensive.
4. Not maintaining the vehicle – Many lessees are not careful with the vehicles they lease because they only use them for a short while. Nevertheless, accidents happen during business trips and vacations. Lessees should read leases carefully for any stipulations on repairs.