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Short Term Leasing -What are the Pros and Cons?

14th April 2019

The advantages of short term leasing and deciding if short term leasing is for you.

14th April 2019

More and more UK drivers are coming round to short term leasing and rental options. Here are 7 reasons why you should consider short term leasing.

  1. New Car Smell. For starters, these short term leasing/ rental cars are generally very new. This means that not only are the cars up to date with all of the latest gadgets, but you also get to drive around in a nice, new shiny car.
  2. Budgeting wisely. When you take out a short term lease it makes it easier to budget. You know what the monthly outgoing is and with most of our short term leasing partners you can also take out a servicing and maintenance package.
  3. No depreciation worries. One of the frustrating issues with cars is counting the cost as they depreciate before your eyes. What looked like an amazing car 3 years ago can seem like a heavy financial burden when it comes time to sell. If you short term lease or rent, the depreciation is someone else’s problem!
  4. Greener cars. Modern cars are simply more efficient as a rule then older cars. This means less of an impact on the environment and the bonus of reduced fuel costs from more efficient engines.
  5. Cost Savings. If you own a business you can often claim back some of the costs associated with leasing from rentals, VAT, maintenance charges and excess mileage costs.
  6. Capital Savings. Your vehicle does not have to appear on your balance sheet if you own a business and you don’t have to fork our large wedges of cash just to have a fleet for your needs.
  7. Flexibility. You won’t even have enough time to tire of the vehicle. Remember that we offer leasing from as little as 3 months up to 2 years.

So there are loads of advantages, but are there any disadvantages?

Not many to be fair but here are a few things you should consider when you weigh up your options.

  • How much mileage will you do? If you do a lot of mileage then you need to factor in excess mileage charges. These charges are applied for every mile over your contracted amount so it’s worth checking what the additional charge is. Short term lease mileage allowances generally range from around 800 to 1250 Miles per month though please check as excess charges can be as high as 50 pence per mile.
  • Insurance isn’t typically included. It’s a good idea to get a quote from your insurance company or aggregator so you can get a feel for your overall costs including insurance.
  • Maintenance is not automatically included though most companies do include complimentary service and maintenance as part of the deal for short term rental or leasing….worth checking though!
  • You can sometimes pay a premium to lease or rent a car for a shorter period particularly for high end prestige vehicles. This is not always the case however as many short term rentals are surprisingly close in cost to taking a longer PCP deal though it is worth checking if you know you want your car for longer than a year.

That’s it! Loads of advantages to short term leasing which is why short term rentals continue to grow as a market segment. There are some things you need to check out like excess mileage charges but on the whole short term flexible leasing makes a lot of sense to a lot of people.

How to get a short term lease:

Our flexible short term lease deals start at 3 months and stretch to as much as 24 months. See our latest short term lease offers here.