Is short-term car leasing the right choice for you?

Date Posted 31st August 2021
Read Time 3 min read

With the availability of new cars being impacted by a worldwide shortage of semiconductor chips, and many manufacturers suspending new car orders until 2022 to work through the backlog, motorists whose lease or PCP deals are coming to an end have been forced to look to short-term car leasing as a quick fix. But what is it, and how does it work?

What is short-term car leasing?

Drivers who need a car for longer than two months, and less than a year are often left in limbo because daily car rental is so expensive and buying used isn’t viable.

With a short-term lease, drivers have a cost-effective way of driving a comfortable car for the amount of time that they need it.

This means that they get all the benefits of leasing – such as access to the newest, safest, and cleanest cars with delivery, breakdown, warranty, and road tax included – without any of the long term considerations such as being required to get the car serviced or having to drive the same car for a long period.

How long is a short-term lease?

Hippo Leasing’s short-term lease deals can last for anywhere between three and 12 months. It’s essentially like car hire only for a longer term and at a more affordable price.

Short-term leasing is the type of agreement that will suit personal and business customers for a variety of situations such as:

  • Drivers who are currently without a car due to their lease deal ending/their new car has been paused due to the semiconductor chip shortage
  • Long-term holiday makers who hold a valid driving license for the UK
  • Those whose current lease or PCP deal is due to run out and there’s a long lead time on their next car
  • Drivers who haven’t made their mind up about a car who want to ‘live’ with a model for a longer period of time than a test drive allows
  • Your business needs to provide a car for a temporary member of staff

READ: Advantages and disadvantages of Personal Contract Hire

What cars can I lease short-term?

While short-term leasing offers a level of flexibility without the need to commit to a long term contract, the choice of vehicle is often limited to city cars such as the Fiat 500 and small crossovers such as the Suzuki Vitara.

That means that, although we offer a wide range of cars from all makes and models, not all of them are available on a short-term lease.

What deposit do I need for a short-term lease?

All of our short-term lease deals at Hippo Leasing are offered as part of our zero deposit service, meaning there is no upfront initial payment to be made on the car of your choice.

We offer our short-term lease deals with no initial payments due to the rapid nature of the deals so you can budget accordingly.

Can I get a short-term lease with bad credit?

If you have bad credit, short term leasing may be an option as the acceptance criteria is lower than leasing for a regular 24 or 36 month contract. This is due to the shorter commitment required.

READ: Can I lease a car with bad credit?

If you believe you have bad credit, we can also provide a variety of options including zero deposit deals and our free ‘apply now’ feature:

Apply for a lease car now

Benefits of short-term car leasing

Having given you a broad overview of how short-term leasing works, the advantages and disadvantages of short-term leasing include:


  • No initial payment
  • Flexibility in which car you drive
  • No long term commitments
  • Fixed monthly cost
  • No maintenance costs


  • Small choice of cars to lease
  • Higher monthly payment due to depreciation occurring in the early phase of car ownership
  • Smaller mileage allowance than a traditional lease


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