7 Things to consider before choosing a short-term car lease

Business Insights

Short-Term Car Leases are a great option for businesses or individuals who want the benefits of a traditional car lease but without having to sign into a 2 or 3 year contract. It is a great way of enjoying a brand-new car on a more regular basis.

Before you sign up, here are 7 things you should consider?

    1. Contract Lengths

A short-term car lease is usually anything less than 18 months, with most providers in the UK offering vehicles on a 6, 9 or 12 month agreements. Credit checking and paperwork is usually much easier to complete than a traditional car lease and the upfront payments are lower, although due to the shorter term, the rentals can be higher.

    2. Cost Effective

As with all car leases, the cost of the monthly rental depends on many factors, this can include mileage, make/model, depreciation and the purchase price. You may think that premium models will be more expensive, but if they have strong residual values then they can work out to be more cost effective.

    3. Mileage

All car leases will include a mileage allowance, it is really important to make sure that you choose a mileage allowance that fits in with your needs and requirements. Make sure you understand what mileage is included with your short-term lease and the penalties if you should go over. Traditionally excess mileage is higher on short-term leases when compared to 2/3 year contracts.

    4. Terms and Conditions

Before you sign any contract make sure you read the small print. Short-Term Car Leases can usually fall into two different categories, those that fall into a flexible arrangement or car subscription can usually be altered in length without any penalties. If it is a fixed short-term car lease, then these cannot usually be extended or reduced in length without paying a premium. Also, it is worth noting that you will never own the vehicle and you might not have the option to purchase.

    5. Return Conditions

Before we go into the return conditions, when you receive the car make sure you check it thoroughly before signing, even brand-new vehicles can sustain damage on transit. It is your responsibility to keep the vehicle free from damage and short-term car leases do not have to adhere to the BVRLA Fair, Wear and Tear guides which is generally for leases 18 months plus. Make sure you understand the condition that the car must be returned to the lessee this will usually be in the terms and conditions, but some may have the guides on their websites.

    6. Business Friendly

Many of the short-term car lease providers advertise their vehicles to individuals and not all leasing companies who offer these type of financing options are available to businesses. Look for those who specialise in business car leasing with some offering dedicated account managers, fleet management and simple consolidated invoicing. There are also companies who offer these options to new start-up businesses and those with overseas parent companies.

    7. Reputation

Unfortunately, in the field of short-term car leasing, scammers are utilising social networks to advertise deals and vehicles that just do not exist or not as they appear, these can come under all different types of guises such as no credit check car leasing or no deposit, be very careful. Before you send any money to a car lease provider do your homework. Make sure that they are established on places like companies house and use review websites such as Trustpilot and Google My Business to see what customers have said. Depending on the firm they may also require FCA permissions and you can view these on the FCA website.


Short-Term Car Leasing is a great service to those who just don't want to commit to a 2/3 year contracts and the reasons businesses should consider these as part of their fleet include low upfront costs, they are ideal for staff probation periods or those businesses that offer seasonal trends.

Business Friendly Solutions

Established in 2007, Cocoon Vehicles in Derby have been providing short-term vehicle solutions to small, medium and large businesses in the UK.

Find out more about short-term car leases at: https://cocoonvehicles.co.uk/short-term-car-lease/

Of speak to the team to see how we can help you and your business on 01332 290173