How Long Are Most Car Leases?
Thursday, May 14, 2015 at 1:35 AM
When you lease a car, you are only paying the depreciation of the car during the years that you lease it. Because of this, you'll typically have lower monthly payments than if you had chosen to finance a car using the same loan terms. Additionally, because you have not bought the car, you are free to hand off the keys at the end of your lease and find another vehicle (you also have the option to buy it, of course). Since so much of your car leasing experience will depend on the duration of the lease, you might be wondering about the typical length of leases. How long are most car leases? How much flexibility do you have? And how will the length affect your experience? Let's find out!
How Long Are Most Car Leases?
First of all, you'll find that most car leases run about 12 to 48 months (or 1 to 4 years). However, there are short leases (around 6 months) and long leases (around 4 to 5 years) as well. Your lease will depend on what the dealer offers, how long you want to commit yourself to the car, and how small you would like your lease payments to be.
What to Expect from a Short-Term Lease
A short-term lease (often considered to be in the 6-24 month range) are perfect for people who don't want to commit to a car for a long time. They can help you avoid an early termination fee (the fee applied if you decide to end your car lease early), but the monthly payments will generally be higher.
What to Expect from a Long-Term Lease
A long-term lease (often considered to be any lease longer than 24 months) will require you to commit to the car for a lengthly period. If you end up canceling the lease early, you will have to pay an early termination fee. However, these leases do generally come with lower monthly payments. Additionally, be sure to ask about the warranty if you're considering a long-term lease. If your long-term lease carries the car past the warranty cut-off date, you may have to pay for major repairs.
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At the end of your lease, you can either return the car or buy it for the residual value. Or, if the dealer offers it, you could ask for an extension on a month-to-month basis (though this may change the terms of your contract).
If you're choosing between a short-term and a long-term lease, know that one type isn't necessarily better than the other. It's all about what's best for you. If you need help deciding between the two, discuss your needs and wants with the dealer beforehand. Above all, be sure that you fully understand the details of your contract before you make a commitment.
Are you interested in leasing a car? If so, be sure to check out Auto By Rent, the largest lease-to-own auto dealer in Missouri and Tennessee. We can help you secure a quality vehicle regardless of your credit history. To learn more about our services, please click here for a free quote or contact the location nearest to you:
North Springfield: 417-447-7979
South Springfield: 417-877-2001
We look forward to hearing from you!