Short Term Car Leases: Between Rental and Purchase

2007-03-08 10:33:40

( Insurance )



ON A TEMPORARY STATE

Short term car leases offer an ideal compromise for situations where you need a vehicle that you can use everyday, but only for a short period of time. It straddles the gap between renting a car and making an actual purchase.

Examples of these situations are where you are on a temporary job assignment out of state or on a foreign land. You may also want to avail of short term car leases if you are traveling or on vacation for some time or if you are a foreign student. These cases warrant the use of a vehicle but do not require a permanent car purchase.

Short term car leases last for three months to twenty four months, depending on the type of car you choose. Usually car leasing companies do not offer brand new cars for short-term leases; they are offered for long-term arrangements, from a six month to a one-year. However, there are car manufacturers who directly offer brand new cars, fresh from the plant for short-term leases.

THE GOOD AND THE BAD

There are several advantages of short-term leases. One, you get full commercial vehicle insurance with your lease plan; second, short-term leases are tax-free so you can save on expenses; and there are less restrictions on age requirements.

The downside to short-term leases is that it operates under a very definite time frame. You cannot avail of a lease for an indefinite period of time. The contract for car leases has a very specific duration that you must adhere to. In cases where you need to return to your native land and therefore cancel the lease, you will have to pay in full the remainder of your short term car leases.

In this case you have the option to sub-lease, or offer the lease to somebody else. Once you have informed the leasing company, the person will then be able to use the car for the remainder of your lease contract.


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