Which Car Lease Term is Best? [2023]

Are you considering leasing a car but unsure about the best lease term? You’re not alone! Choosing the right lease term is an important decision that can impact your finances and overall satisfaction with the vehicle. In this article, we’ll explore the different car lease terms available, their pros and cons, and provide expert advice to help you make an informed decision.

Table of Contents

Quick Answer

The best car lease term depends on your individual needs and preferences. However, a lease term of 36 months (3 years) is the most common and often considered a good balance between affordability and flexibility. Shorter lease terms, such as 24 months, may have higher monthly payments but offer the advantage of upgrading to a new vehicle more frequently. On the other hand, longer lease terms, such as 48 or 60 months, can result in lower monthly payments but may require you to keep the vehicle for a longer period.

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Quick Tips and Facts

Before we dive deeper into the topic, here are some quick tips and facts to keep in mind:

  • The average car lease length in the U.S. is 36 months.
  • Short-term leases (under 24 months) and long-term leases (48 or 60 months) are also available.
  • Leases of 1 to 12 months and 12 to 24 months are rare and may have high monthly payments.
  • A 24-month car lease is typically the shortest advertised lease available.
  • Some leasing companies offer 48-month and 60-month leases for lower monthly fees.
  • Short-term car leases (less than 24 or 36 months) are not favored by most leasing companies.
  • Short-term car subscriptions, like those offered by FINN, are an alternative to short-term leases.

Background

Car leasing has become a popular alternative to buying a vehicle outright. It allows you to drive a new car without the long-term commitment of ownership. Instead of purchasing the vehicle, you pay for the depreciation and use of the car over a specific period. At the end of the lease term, you return the car to the leasing company.

What is the Best Duration to Lease a Car?

The best duration to lease a car depends on your personal circumstances and preferences. Here are some factors to consider when choosing a lease term:

  1. Budget: Shorter lease terms generally have higher monthly payments, while longer lease terms often result in lower monthly payments. Consider your budget and choose a lease term that aligns with your financial goals.

  2. Desired Vehicle: If you enjoy driving the latest models and want to upgrade frequently, a shorter lease term, such as 24 or 36 months, may be more suitable. This allows you to experience new features and technologies without a long-term commitment.

  3. Driving Habits: Evaluate your average annual mileage. Leases typically come with mileage restrictions, and exceeding the agreed-upon mileage can result in additional fees. If you have a long commute or frequently take road trips, a higher mileage allowance or a longer lease term may be beneficial.

  4. Future Plans: Consider your future plans and how long you intend to keep the vehicle. If you prefer driving a car for a longer period, a 48 or 60-month lease may be a better fit. However, keep in mind that longer lease terms may require you to cover maintenance and repairs once the manufacturer’s warranty expires.

What is a Good Term for a Car Lease?

A good term for a car lease is typically around 36 months (3 years). This duration strikes a balance between affordability and flexibility. It allows you to enjoy a new vehicle with lower monthly payments compared to shorter lease terms, while still providing the opportunity to upgrade to a newer model at the end of the lease.

What is the Best Term for a Lease?

The best term for a lease depends on your specific needs and preferences. Here are some lease term options to consider:

  1. 24-Month Lease: A 24-month lease is typically the shortest advertised lease available. It offers the advantage of upgrading to a new vehicle more frequently, but it may come with higher monthly payments.

  2. 36-Month Lease: A 36-month lease is the most common lease term and often considered a good balance between affordability and flexibility. It allows you to enjoy a new vehicle with manageable monthly payments.

  3. 48-Month Lease: Some leasing companies offer 48-month leases, which can result in lower monthly payments compared to shorter lease terms. However, keep in mind that you’ll be committed to the vehicle for a longer period.

  4. 60-Month Lease: A 60-month lease is the longest lease term available and can provide the lowest monthly payments. However, it’s important to consider the potential risks of committing to a vehicle for such an extended period, such as maintenance and repair costs after the warranty expires.

What is the Best Time to Lease a Car?

The best time to lease a car can vary depending on various factors, including seasonal promotions, manufacturer incentives, and market conditions. However, there are a few general guidelines to keep in mind:

  1. End of the Month/Quarter/Year: Dealerships and leasing companies often have sales targets to meet, and they may be more willing to negotiate favorable lease terms towards the end of the month, quarter, or year.

  2. Model Year Changeover: When new models are released, dealerships may offer incentives and discounts on the previous year’s models. This can be a good time to lease a car and potentially secure a better deal.

  3. Holiday Sales Events: Holidays such as Memorial Day, Labor Day, and Black Friday often come with special promotions and discounts. Keep an eye out for these sales events to potentially save on your lease.

  4. Off-Peak Seasons: Leasing demand may be lower during certain times of the year, such as winter months. Dealerships may be more motivated to offer competitive lease terms during these off-peak seasons.

How to Choose the Length of Your Car Lease

Choosing the length of your car lease requires careful consideration. Here are some steps to help you make an informed decision:

  1. Evaluate Your Needs: Assess your budget, driving habits, and future plans. Determine how long you intend to keep the vehicle and how frequently you’d like to upgrade to a new model.

  2. Research Reliable Leasing Companies: Look for reputable leasing companies that offer competitive lease terms and favorable customer reviews. Consider factors such as lease-end options, customer support, and lease transfer policies.

  3. Consider Monthly Payments: Shorter lease terms generally result in higher monthly payments, while longer lease terms often have lower monthly payments. Determine what monthly payment range is comfortable for your budget.

  4. Factor in Depreciation: Keep in mind that vehicles depreciate over time. Shorter lease terms allow you to experience newer models with less depreciation, while longer lease terms may result in higher depreciation costs.

  5. Review Lease Terms and Conditions: Carefully read and understand the lease terms and conditions, including mileage restrictions, wear and tear guidelines, and any additional fees or penalties. Ensure that the lease aligns with your needs and preferences.

Pros and Cons of Different Lease Terms

Let’s explore the pros and cons of different lease terms to help you understand the advantages and disadvantages of each option:

Lease TermProsCons
24 Months– More frequent upgrades
– Lower mileage on the vehicle
– Potential warranty coverage for the entire lease term		– Higher monthly payments
– Limited vehicle selection
– Potential excess mileage fees
36 Months– Balanced affordability and flexibility
– Wider vehicle selection
– Potential warranty coverage for the entire lease term		– Moderate monthly payments
– Potential excess mileage fees
48 Months– Lower monthly payments
– Longer commitment to the vehicle
– Potential warranty coverage for a significant portion of the lease term		– Higher depreciation costs
– Potential maintenance and repair costs after the warranty expires
60 Months– Lowest monthly payments
– Longest commitment to the vehicle
– Potential warranty coverage for a significant portion of the lease term		– Higher depreciation costs
– Potential maintenance and repair costs after the warranty expires
– Limited vehicle selection

It’s important to carefully weigh these pros and cons based on your individual circumstances and priorities. Consider consulting with a leasing specialist or financial advisor to ensure you make the best decision for your needs.

FAQ

yellow sedan parked near red concrete building

What is the best duration to lease a car?

The best duration to lease a car depends on your individual needs and preferences. However, a lease term of 36 months (3 years) is the most common and often considered a good balance between affordability and flexibility.

Read more about “… 12 Benefits of Leasing a Car: Why Leasing is the Smart Choice”

What is a good term for a car lease?

A good term for a car lease is typically around 36 months (3 years). This duration strikes a balance between affordability and flexibility.

Read more about “… Can You Lease a Car for a Year? Drive Your Fleet Forward!”

What is the best term for a lease?

The best term for a lease depends on your specific needs and preferences. Shorter lease terms, such as 24 months, offer more frequent upgrades, while longer lease terms, such as 48 or 60 months, result in lower monthly payments.

Read more about “… Hyundai Elantra Lease Deals: Get the Best Value for Your Money”

What is the best time to lease a car?

The best time to lease a car can vary depending on various factors, including seasonal promotions, manufacturer incentives, and market conditions. End of the month, quarter, or year, model year changeovers, holiday sales events, and off-peak seasons are generally good times to lease a car.

Read more about “How much is a lease on a $45,000 car? …”

Conclusion

Choosing the best car lease term requires careful consideration of your budget, driving habits, and future plans. While a 36-month lease term is the most common and offers a good balance between affordability and flexibility, shorter and longer lease terms have their own advantages and disadvantages. Evaluate your needs, research reliable leasing companies, and consider the pros and cons of each lease term option. By making an informed decision, you can enjoy the benefits of leasing a car that aligns with your preferences.

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Jacob
Jacob
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