Whilst most Contract Hire and Leasing deals tend to last for 2 to 3 years, and the costs of Daily Rental Vehicles over longer periods can prove quite costly. Short Term Leasing fits the gap in the middle.
Most Short Term Leasing contracts start from 3 months and can be as long as 12 months, with the option to change your car every 3 months (subject to Documentation and Delivery Fee’s). We always say that it works very similar to a Mobile Phone contact, you choose your car (handset), then choose the monthly mileage (minutes) and then the term of the contract.
As a traditional lease, the rental is worked out by calculating the difference between the value of the car at the start of the contract and then what the car will be worth at the de-fleet date. We ask you to work out your mileage as accurately as possible as the excess mileage charges tend to be higher than a 2 or 3-year lease.
There is a minimum period to have the vehicle, usually 3 Months (actually calculated as 3 x 28 day periods), if you wish to terminate your vehicle at the end of this period, you must do so 30 days beforehand. If no notice is given then the contract is carried on until we receive such notice.
When the vehicle is returned, the car is checked over for any damage. Fair, Wear and Tear guides are available but it is very rare that these are applicable to the vehicle due to the shortness of a contract.
Benefits to using Short Term Leasing:
- We regularly update our vehicles (dependent on supplier), with most vehicles being no older than 24 months.
- We tend to supply prestige brands such as Audi, BMW, Jaguar, Land Rover, Mercedes and VW as these hold their prices, which results in competitive rentals
- We can offer flexible leases to fit in with you, either as a stop-gap, to replace a main or company car or even if you are waiting for a new vehicle to be delivered… Just as the team
- On the majority of the vehicles, maintenance is included which will cover for all of the services and tyres (except accidental damage or punctures). This is ideal if you regularly do high mileage.
- Flexible mileage allowance is available with some vehicles available with up to 6,000 miles per month.
- Those people or businesses with poor credit or CCJ’s, have a better chance of getting a credit line on Short Term Leases. We access your affordability and can offer alternative terms.
- FIXED COST MOTORING -The main benefit to Short Term Leasing, you know exactly how much your vehicle will cost you with no worries with maintenance, servicing or Road Fund Licence. All you need to do is provide insurance and fuel.
Of course, there are downsides to Short Term Leasing, mainly the higher costs. Short Term Leasing can be higher than longer term Contract Hire but will be a lot less than a Daily Rental vehicle over the same period. We have done a comparison for you to look at below:
VOLKSWAGEN GOLF 2.0 GT TDi 140 5dr Manual
30k per annum / 2.5k per month / Maintenance
Short Term Leasing Price per month = £546 plus VAT (28-day price as advertised = £504 plus VAT)
Long Term Leasing Price per Month (36 Months) = £468.11 plus VAT (Based on 3 + 36)
This price is correct as of 4th January 2016 / Long Term Quotation produced on Lex Autolease