Short-Term Car Leases

July 18, 2023

We have specialised in short-term solutions at Cocoon Vehicles since 2007, our short-term car leases are an area that has become extremely popular with both business and consumer customers. Whilst many traditional personal car leases and business car leases stretch over a period of 2 to 4 years, short-term car leases are on shorter contracts usually ranging between 6 to 12-months.

Short-Term Car Leases offer a great solution for many drivers without the long-term commitment of a traditional car lease. It allows you to change your car on a more regular basis and it is more cost-effective than taking a similar vehicle via a long-term car rental arrangement through a daily rental company.

What is a Short-Term Car Lease?

Just like a traditional car lease, a short-term car lease is identical except the contract length is usually over 6 to 12 months. The only difference being is that you cannot specify exactly the car, colour and it’s options.

Whether you need a car for business or pleasure, short-term car lease options should fit your requirements without having to sign into a long-term car lease.

They are ideal for those who are waiting for their new car to be delivered, business owners who need a car for their employees but are worried they may leave prematurely or those who just want to drive a brand new car every few months. They are also ideal for those who have come to work in the UK on secondment or Expats.

How long are short-term leases?

Usually the maximum length of a short-term car lease is 12-months, however we do offer contracts up to 18 months depending on the vehicle and/or supplier.

The vehicles/suppliers dictate the terms of each vehicle, therefore, it is not possible to opt for a VW Golf on a 6-month contract and then take it for 7-months. But the team here can discuss your requirements whether it be time dependent or vehicle dependent.

One of the most requested services we get asked about is “Can we lease a car for 3-months” – It is possible by utilising one of our popular flexible car subscription services.

Can you extend a short-term car lease?

If you opt for our fixed short-term car leases, it is not possible to extend the contract without penalities. Usually the vehicles are on strict manufacturer buy-backs and will need to be returned on the specified date.

If you need an open ended short-term solution, then the car subscription service would be ideal as these can be run on a month-to-month basis until you give notice to return.

Can you end a short-term car lease early?

On the fixed short-term car leases, it is not possible to return the vehicle early without paying an early termination charge. This is usually the balance of the rentals up to the contracted length.

For example if you were 3 month into a 6-month car lease, you would need to pay the remaining 3 payments. If you need a more flexible contract, we would recommend taking a look at our car subscription service.

What are the benefits to short-term car leases?

There are the usual pro’s and con’s to consider with any car related financial product and what works for one business/person, may not work for another. But here are a few universal benefits to short-term car leases:

Things to consider before signing up…

Before you sign on the dotted line, there are a few things to consider:


All vehicles come with a mileage allowance, before signing the contract or order form, make sure that the mileage included is suitable for your needs. Excess mileage rates are generally higher than traditional car leases.


Fully comprehensive insurance needs to be provided by the business or individual for the duration of the contract. Short-Term car insurance can provide expensive and it might be more beneficial to take out an annual policy or add to an existing fleet or multi-car policy.

Wear and Tear

Short-term leases do not have to adhere to the BVRLA fair, wear and tear guides. We publish the strict RETURN STANDARDS of our vehicles which also form part of the contracts. It is advisable to peruse these guides to ensure you understand the condition the car must be returned in.

Early Termination Charges

If you take out a fixed short-term car lease then you need to understand that it is not possible to return the car without paying an early termination charge. This is usually the balance of the rentals on the contract.

Who is eligible for a short-term car lease?

Business and Consumer customers can APPLY ONLINE for a short-term car lease with all applications subject to status. The procedure is less strict than a traditional car lease but you may need to jump through a few more hoops before you receive acceptance:

Business Application Requirements

For those applying as a sole trader, partnership, limited company (LTD) or public limited company (PLC), our experienced underwriters will credit score the company and request additional documents and/or information, these may include:

Additional information may be requested depending on the status, especially if you are a new-start business, negative shareholder funds or classed as non-status.

Personal Application Requirements

For those applying for a personal short-term car lease, our underwriters will credit check you and may request additional documents and/or informatiob depending on your status.

Additional information may be requested depending on the status, especially if you classed as non-status or you are applying as an Expat Customer.

Why take a short-term car lease?

There are hundreds of reasons why many people choose to take a short-term car lease, but some of the more popular reasons are as follows:

More Information

If you need any further information on the short-term car leases that we offer for business and personal customers, speak to a member of the team by calling 01332 290173 or by using the ENQUIRY FORM below.

We’ve been established since 2007 and we’re here to stay. We offer a wide range of flexible and fixed short-term solutions on cars and commercial vehicles.

There are so many circumstances where you may need that flexible vehicle, just call the team on 0330 330 9425 to see how we can help you!

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