The 5 benefits of short lease
Whereas terms like rent and lease have a light bulb going off for most people, this is much less the case with short lease. This while short leasing has become increasingly popular in recent years. And not without reason, compared to traditional car leasing and car rental, short lease has advantages. What advantages does short leasing have? You can read them here.
This is short lease
To explain the benefits of short lease, it is important to know what short lease is. Short lease is a form this between car rental and car lease. Whereas with car leasing you often have a fixed contract of at least 24 months and with car rental it is often for one or more days, short lease often concerns the medium term. With a rental period of 2 to 24 months, we speak of short lease.
The advantages of short lease over lease and rental
There are several reasons why people choose short lease instead of lease or rent. What advantages does short leasing have over leasing and renting? Below are 5 benefits:
Low monthly charges
When having a car is something necessary, you can choose to purchase, rent or (short) lease a car. When you want to buy a car, you need sufficient financial resources. With car rental, the costs for longer periods of time quickly add up. Short lease is the ideal solution to be able to use a car for relatively low monthly charges.
Flexibility
Unlike leasing, short lease has a flexible nature. Whereas with leasing you often agree on a longer fixed term, short lease is the solution when you don’t yet know whether you need a car for two months or two years. A short lease contract is easy to renew and terminate without being stuck with penalty clauses.
Direct driving
Whereas with lease you put together a car that fully meets your needs and, as a result, you often have to wait months until the car is delivered, this is not the case with short lease. With short lease, you choose a young used car that is in stock. This often allows you to drive within 24 hours of your application. Because short lease companies often have ample inventory, you still have a wide range of cars to choose from these days.
No BKR registration
When a business owner or individual takes out a lease, it is considered a loan. A loan must be registered with the Bureau of Credit Registration. For many business owners and individuals, a BKR registration is something they would rather not have. A BKR registration can have a negative impact when you want to take out a mortgage.
No multi-year figures required
Whereas as a business owner for a lease contract you often have to provide multi-year sales figures before a leasing company will actually do business with you, this is not the case with short lease. For start-ups, handing over annual figures for several years is often difficult. Annual figures are often not necessary for a short lease contract. Because a short lease contract is flexible, if the monthly bill is not paid, a short lease company can quickly terminate the contract. Often, short leases come with a small deposit.
In conclusion
For many business owners and individuals, car leasing is not possible and car rental is too expensive. As a result, short lease is the answer. That is why it is possible to take out short lease for business as well as private use. Due to its flexible nature, a contract can be easily extended and stopped.
