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.