9 things to look out for on a Short Term Car Lease deal…

Short Term Car Leases are extremely popular in the UK, with all of the uncertainty with Brexit and the pending personal credit bubble that may or may not happen.

Updated: From 5 to 9 things to look out for on a Short Term Car Lease Deal.

Credit: Tesla Model 3 RHD

Customers no longer want to commit to the usual contract hire & lease periods of 2–4 years, a lot can happen in that time. From companies changing staff around to families growing and needing larger cars.

Short term car leases are ideal for these situations and can eliminate companies who re-lease unwanted cars or being stuck with an old car that you have to either buy your way out of, or put it into an unhappy employee.

There are many companies that offer a short term car lease solutions, but I want to lay out the pro’s and con’s, what to look out for and the dreaded return of the vehicles.

1. When comparing deals, it’s so difficult to see passed the headline rate. But take a glance at the initial rental, some firms ask for an equivalent of 2 or even 3 rentals in advance, its to make the short term car lease monthly rate attractive. Some firms also don’t quote for a calendar month and you’ll be paying that rate every 28 days.
2. Fixed contracts, generally mean fixed. If you need a car for 7 months and the contract offered is for 6 months, you’ll find it either extremely difficult or extremely expensive to cover the 1 month gap with a car. Many firms who offer short term car leases, will offer a few cars on 7 month contracts, they maybe a little more but worth it considering the scenario. Don’t dismiss flexible car lease (aka Long Term Car Hire), which can be taken from 28 days and kept up to 12 months.
3. Car Subscription Service may also be an option for many individual people and even companies. Take a car for 1 month or 1 year, pause, upgrade and downgrade with just a call or an email. Most include maintenance, breakdown assistance and generous mileage packages, all you need to do is fuel and insure. If you want one with Insurance, then Drover offer this service.
4. Short Term Car Leases tend to be in stock and ready to go, this is ideal if you have a new start employee giving them a company car from day 1 and remain accountable for the same vehicle until they have finished with it.
5. Cheaper than daily rental over the same period and you know what car you are going to be driving, whereas rental firms offer a group of car.
6. Overseas workers and Expats — Many firms offer short term car leases and flexible car leases for workers who are on secondment in the UK. If you have workers coming in to the UK for 6/12 months, these short term car leases are ideal.
7. Return Conditions — Now we all know the scenario, you return your lease car or hire car, and the hairs stand up on the back of your neck as the rental person or inspector goes around the vehicle. Now as these are short term car leases, they do not have to comply with the BVRLA fair wear and tear guide. So in a nutshell, look after your car as though its your own and DON’T use a back street garage to repair the car if you do have any scrapes, otherwise you will get a big rectification bill.
8. Tyre provision — Some short term car lease companies or flexible car leases will come with tyre provision or an option to add this, but this will not include accidental damage such as tyre wall chips or punctures. Also make sure that if you do have to change the tyre, they are like for like.
9. There are plenty of reputable companies that offer short term car leases in the UK, it’s always a good idea to check them out on companies house to make sure that they are trading and established. Have a look at the reviews, but like with every review system, people only generally have something to say when they’ve had something to complain about and many of the customers who have had a good experience haven’t got time to write anything.

Your comments on Short Term Car Leases?

Have you got anything to add to the above? Have you had a short term car lease before and does it work for you? Are you the type of person to have a convertible or a coupe in the summer and an SUV in the winter? Let me know in the comments below and I will try and come back to you.

About me and my business?

I have worked in the motor trade for over 15 years now, starting in Renault Retail Sales and working my way up to Marketing Manager for a large dealership. I hated retail sales and felt that I couldn’t sell the extras such as payment protection, Supaguard, etc as I didn’t believe in the product.

When I set Cocoon Vehicles up in 2007, I wanted it to be transparent. With our short term car leases I want people to know what their getting, what they have to pay and how they have to return it.

I really would love to hear from you and your comments. But in the meantime, you can find out more about my company here: Cocoon Group Ltd