Lots of people always lease their vehicles in the US because it’s an option that is considered very fluid and affordable by the majority of individuals. It gives customers easy access to the latest model of their favorite brand of car, and dealerships, more often than not, offer various specials that attract more people to opt-in for a car lease deal they can trust.
Another advantage that comes with leasing a vehicle is the flexibility in the length of the deal. Customers can go for either a short term lease or a long term lease. Such an option isn’t available to financers, who have to deal with constant depreciation of the value of the car. Now, different individuals have different needs, and some might decide to go for a short term lease or a long term lease based on their respective circumstances.
In this article, we are going to explain the differences between the two lease types clearly so that you will be able to lease an automobile like a VIP when you get out to the market.. They both have benefits that serve their different purposes. These differences will enable you to make easy decisions on which deal to go for and to know which agreement will profit you the most.
Duration is a significant difference between the two options. A short term lease deal usually lasts between six months and twenty-four months. This short term is a preferable option for people living in a particular area of the lease for a limited or short time. Individuals with the habit of changing vehicle models frequently also go for it.
A long term lease deal, on the other hand, lasts from 24 months to four or five years, as the case may be. Individuals that usually seek this type of deal are long term residents in a particular region. They are also known to be content with a specific model of a vehicle for an extended period.
- Monthly Payments
Monthly payments are another decisive factor in determining what type of deal to get. Generally, monthly fees for short term lease deals are higher than those of long term lease deals. This higher monthly payment incurred by short term lease deals is usually an attempt made by dealerships to make more out of the short lease period. Individuals tend to opt for a long term deal to get lower monthly payment deals from dealerships.
- Down Payments
Short term dealers enjoy the benefit of not having to make any down payments for the vehicle. The reasons are such payments have already been settled by the original lessee of the car. Meanwhile, long term dealers don’t have the same privilege. However, short term dealers are responsible for any damage sustained by the vehicle after assuming ownership, while the dealership and their insurance policies protect long term dealers better.
Short term lease deals are more likely to be protected by the warranty of the vehicle throughout the lease term. The same can’t be said for long term lease deals, as they exceed the vehicle warranty on most occasions, which brings about more maintenance to keep the resale value of the vehicle reasonable.