Not everyone wants a car lease lasting 2/3 years, but did you know that you can lease a car for less than 2 years? Here at Cocoon Vehicles we offer both flexible and fixed short-term solutions, but which is better for you and/or your business?
In this guide, we take a look at the differences between the 2 options of flexible and fixed short-term car solutions.
What are the short-term car options?
We offer both flexible and fixed short-term solutions, so let’s take a look:
Car Subscriptions
There are also known as flexible car contracts or flexible car leases, but can be run from 1 month to the point where you need to send the car back. One payment covers the motoring essentials including the rental, maintenance, servicing, warranty, breakdown assistance and road tax.
WIth ourselves, the best prices are for when you commit to the minimum qualifying period, this is usually 90 days or more. But with that being said, 1-month is the minimum contract length for a vehicle subscription.
There is a great range of vehicles available from small hatchbacks to large SUV’s, there are also electric and hybrid options available.
Read more about Subscriptions here: Car Subscriptions Explained
Benefits to vehicle subscriptions include:
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No fixed contracts, it’s a flexible lease arrangement -
Cars can be delivered very quickly when showing as “in-stock’ -
Cars generally Brand New or Nearly New -
Maintenance is included on the majority of the cars -
You can generally keep the vehicles for 12-months plus -
Can be available to Non-Status, New Start-up Businesses and Expats
Drawbacks to vehicle subscriptions include:
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You cannot specify the make/model and/or options on the vehicles -
More expensive than traditional car leasing -
You will never own the vehicle -
Excess Mileage rates can be higher than traditional car leases -
Return standards can be stricter
Short-Term Car Leases
Usually anything contract length less than 24 months is called a short-term car lease. These are fixed contracts with the most popular contracts being 6-months or 12-months, but contract lengths do vary depending on the make/model on offer.
Benefits to a short-term car lease include:
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No Long-Term Commitments -
Brand New and Pre-Registered Cars Available -
Optional Maintenance Available -
Drive the latest vehicles on a more regular basis -
Not much more expensive than traditional leasing
Drawbacks to a short-term car lease include:
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You will never own the vehicle -
Contracts cannot be extended or reduced in length -
You cannot specify the vehicle and/or options -
Delivery isn’t as quick as Car Subscription vehicles -
Maintenance is included as standard
What contract lengths are available on a short-term lease?
Read more about Short-Term Car Leases here: Short-Term Car Leasing
Which is better? Flexible or Fixed?
Only you can answer the question which is better? Both fixed and flexible options have their pros and cons and you will need to choose the service which is right for you and/or your business.
Flexible car lease options are ideal for businesses especially if you have new starters in the company on probation period. They are also ideal for short-term projects that require transport.
Fixed options are ideal for those who need to cover a specific time period or you just want the guarantee of the same car for a period of time. They do usually work out cheaper than flexible options but they don’t come with maintenance as standard.
Short-Term Cars for Business
As we’ve already mentioned above, short-term car leases are ideal for those who need vehicles for their business but without the commitment of a traditional car lease. They offer a great solution that allows you to extend or reduce your fleet vehicles very easily.
We offer a great service to all types of businesses from small to medium to large corporates, we offer help with consolidated invoices for easy rental paying and with your permission, we can reach out to the end users to help them with servicing requirments or general knowledge of their chosen vehicle.
Most flexible vehicle subscriptions come with maintenance as standard and 24hr breakdown assistance is included. Road tax is also covered for the duration of the contract. If the employee leaves, just complete a return vehicle request on our online portal to arrange for the car to come back.
Easily add our vehicles to your existing fleet policy.
Speak to the team to see how we can help with your short-term subscription business requirements or short-term car leases.
How do I insure a short-term car contract?
When you take a car from ourselves on a short-term contract, whether it be a vehicle subscription or a short-term car lease, you need to provide fully comprehensive insurance policy that covers the vehicle. Yo ualso need to tell the insurance company that you are not the registered keeper or owner of the vehicle.
It can be difficult to understand the best way to insure a short-term solution, so here are three options you could use:
Short-Term Car Insurance
Short-Term Car Insurance or Temporary Car Insurance could be used to insure the vehicle. It will be more expensive than an annual policy but their are short-term polices available in the marketplace.
Cancel Annual Policy Part Way Through
Most of our customers opt to take out an annual policy which can be paid upfront or monthly (via Direct Debit) and then cancel it when the short-term car lease or subscription comes to an end. Many companies will charge you a cancellation fee or administration charge to end early, but this can generally work out cheaper than a short-term car insurance policy. If you have paid upfront, the insurance company should refund the balance of any remaining days back to you, less any charges.
Transfer an existing policy
Many of our customers don’t just take one short-term lease and then send it back, they are regulars. These customers use an annual policy which they transfer from vehicle-to-vehicle. Simply let your insurance company know or updated your details using their online portal or smartphone app.
More Information
If you would like any further information about the short-term fixed or flexible vehicles available from Cocoon Vehicles, you can peruse the website, speak to the team on 01332 290173 or by completing the ENQUIRY FORM at the bottom of this article.
