What is a Short Term Car Lease? Pros, Cons & How it Works.
It can feel like life moves faster than ever. We expect our communications to be instant, new series to drop all at once on streaming services, and deliveries to arrive on the next day. Young people are more flexible and fast moving too; recent research by the US Bureau of Labor Statistics demonstrates that baby boomers worked an average of 12 jobs across their working lives, while projections predict Gen Z will work 18 different jobs in theirs. Some things don’t change at the same pace as everything else however. For example; car leasing.
The majority of car leases remain completely inflexible, and ask for a 3 to 4 year financial commitment. With people living more varied and changeable lives, it’s no wonder more and more people are looking at alternatives to traditional car leasing.
What is a Short Term Car Lease?
A short term car lease is pretty much exactly what it sounds like, a car lease that runs for a shorter period than a standard lease, often a matter of months rather than years. At mycardirect for example we offer lease terms starting from just 1 month, with every interval up to 12 months, then rising to 18 month and 24 month options. This means if you want to lease a car, but don’t want to commit to years at a time, you can still enjoy all the benefits of car leasing, but on a timescale that works for you. There are subtle differences however. While old fashioned car leases usually use cars that have never turned a wheel, some short term lease providers offer used or nearly new cars. this guide breaks down how short term leasing works, the pros and cons, and whether it’s right for you.
How Does a Short Term Car Lease Work?
Like a regular car lease, short term car leases are regulated agreements, and you get the same consumer protections under the Financial Conduct Authority (FCA) and British Vehicle Rental and Leasing Association (BVRLA) as you do with a conventional lease. As you’re entering into a regulated agreement, you will need to be underwritten and approved after you apply for a short term lease. This is to make sure you can afford the car you are planning on leasing. This is a matter of both legal compliance, and a consumer protection; as the lease company has an obligation not to put you under any undue financial pressure.
When it comes to the cars themselves, different lease providers have different models. Some act as leasing brokers working with vehicle funders (finance providers) or original equipment manufacturers (car makes) and offer newer vehicles on shorter terms. This style of short term leasing usually works on fixed terms of 12, 18 or 24 months.
Other short term lease providers such as mycardirect work on a fleet system, where they have a pool of cars they own and lease out to customers. This form of short term car lease works a little like long term car rental or car subscription. Short term lease companies with a fleet of cars can offer shorter, more bespoke leases, starting from as little as 1 month. Because a car may go out on lease for as little as 1 month, they will be offering a mix of new cars and lightly used cars.
Benefits of a Short Term Car Lease
Short term leases have a lot of benefits. They allow people who are passionate about cars to drive different models more frequently, and can more easily fit into fast paced modern lives. The different types of short term leases have different benefits however, and they’re worth exploring.
Short term leasing brokers offer brand new cars, which come with a lot of implicit advantages. Firstly when you lease a car, road tax for the first year is included in the lease. So if you’re only leasing for 1 year they’ve essentially taken care of that expense. New cars also require much less maintenance, and depending on the vehicle and its servicing schedule you may not even need to take the car in for it’s first service. It’s a great option if you want a brand new or nearly new car, know exactly how long you want it for, and just don’t want it for that long.
Fleet based services thrive on their flexibility. Because they own their own cars rather than getting them in from suppliers who have their own terms, they can lease the vehicles out for exactly as long as you need. Want to lease a car for 6 months or 9 months? No problem. Because they have the cars on site they can also deliver in a matter of days, eliminating lead times and other unexpected delivery delays. Each company will run their fleet a bit differently, some services like mycardirect offer complete flexibility, so you can extend, cancel or even swap your car from month to month. Mycardirect also include the cost of all maintenance, servicing, road tax, MOT and even replacements for worn tyres as part of our monthly packages.
Downsides of a Short Term Car Lease
From what we’ve discussed so far it seems like short term car leases are a no brainer, but just like any service they also have their downsides. First off, price. Because a long term lease has a long term commitment, the lease company can lower the monthly price and still get a guaranteed return. With a short term car lease the lease company has less of a guaranteed return, so needs to raise the monthly price accordingly. Short term leases cost more per month, but you’re essentially paying for the flexibility.
Secondly there is a more limited vehicle choice. If you’re happy to commit to a 3 or 4 year lease, you can lease basically any car on the market in the UK. Not so with a short term lease. Not all cars are available from short term leasing services, and you typically won’t be able to spec the car yourself either, like you can with a factory order.
Is a Short Term Lease Right for You?
Ultimately whether a short term car lease is right for you will come down to your own needs and expectations. A short-term lease is a smart choice if you need flexibility without the long-term commitment of a traditional contract. It’s particularly useful for people with dynamic lifestyles, businesses with temporary staff, or anyone wanting to try out a vehicle before deciding on a longer-term option.
You’ll often pay a little more per month compared to a longer lease, but in return you gain the freedom to change vehicles more often and avoid being tied down. If flexibility, convenience, and ease of budgeting matter more to you than the lowest possible monthly cost, then a short-term lease could be the right fit.
Conclusion
Short term leases are a great option for drivers who don’t want to be tied into the same car for years at a time, but they’re not the ideal solution for every driver, and don’t come with no downsides whatsoever. Nor are short term leases completely novel or revolutionary – they’ve been around for years – but as consumer preferences change, it’s easy to see why they’re becoming more and more popular. Indeed evidence from Google Trends demonstrates that interest in short term car leases has never been higher worldwide than right now (at time of writing in August 2025).
If you’re interested in starting a short term car lease consider if you want a fixed term or flexible option. If you want a flexible short term car lease with loads of extra services thrown in, why not check out the short term car leases available from mycardirect? We have a great range of cars available from budget options up to luxury vehicles. You can read our full guide to short term leasing here, and view all of our cars here.