Can You Lease a Car for a Year

Yes, you can lease a car for a year, but it’s not common and often more expensive than standard 24- or 36-month leases. Short-term leases are typically offered through specialized programs or as lease assumptions, and they come with unique terms and limitations.

Key Takeaways

• Understanding can you lease a car for a year: Provides essential knowledge

Can You Lease a Car for a Year?

If you’re wondering, “Can you lease a car for a year?” the short answer is yes—but it’s not as simple as walking into a dealership and signing a one-year contract. Most car leases are designed to last 24, 36, or even 48 months. These longer terms help spread out the vehicle’s depreciation cost, making monthly payments more affordable. A one-year lease, on the other hand, is considered a short-term lease and isn’t widely offered by traditional automakers or leasing companies.

That said, there are ways to lease a car for just one year. You might find a one-year lease through a specialized leasing program, a private lease transfer, or by assuming someone else’s existing lease. These options come with their own set of rules, costs, and considerations. While a one-year lease can be ideal for someone with a temporary job, a student, or someone testing out a new city, it’s important to understand the trade-offs.

In this guide, we’ll walk you through everything you need to know about leasing a car for a year—what it is, how it works, the pros and cons, and whether it’s the right choice for your situation. We’ll also explore alternatives like car rentals and subscription services that might better suit short-term needs.

What Is a Car Lease?

Before diving into one-year leases, it helps to understand how car leasing works in general. A car lease is essentially a long-term rental agreement. Instead of buying the vehicle, you pay to use it for a set period—usually 2 to 4 years. You make monthly payments that cover the car’s depreciation during the lease term, plus interest (called the money factor), taxes, and fees.

At the end of the lease, you return the car to the dealership, assuming you’ve stayed within the agreed-upon mileage limit and haven’t caused excessive wear and tear. Unlike buying, you don’t build equity in the vehicle, but you also avoid the long-term commitment and potential repair costs of ownership.

How Leasing Differs from Buying

When you buy a car, you own it outright (or pay off a loan to own it). You can drive it as much as you want, modify it, sell it, or keep it for as long as it runs. With a lease, you’re only renting the car’s use. You’re responsible for monthly payments, insurance, and maintenance, but you don’t own the vehicle. At the end of the lease, you walk away—unless you choose to buy it.

Leasing often appeals to people who like driving newer cars with the latest features, want lower monthly payments than financing, and don’t mind not owning the vehicle. It’s also a good option if you prefer to upgrade your car every few years.

Standard Lease Terms

Most leases are structured for 24, 36, or 48 months. These terms are chosen because they align with the typical warranty period of a new car and allow manufacturers to predict depreciation accurately. For example, a 36-month lease on a $35,000 car might cost $400 per month, covering the expected drop in value over three years.

A one-year lease, by contrast, compresses that depreciation into just 12 months. This means your monthly payment could be significantly higher—even if the car is the same model. Additionally, dealerships and leasing companies are less likely to promote short-term leases because they’re harder to manage and less profitable.

How to Lease a Car for One Year

So, how can you actually lease a car for a year? While traditional one-year leases are rare, there are several ways to make it happen.

Lease Assumption (Lease Transfer)

One of the most common ways to get a one-year lease is through a lease assumption, also known as a lease transfer. This is when you take over someone else’s existing lease—usually from a person who no longer wants or needs the car. The original lessee transfers the remaining term, mileage allowance, and monthly payments to you.

Websites like LeaseTrader, Swapalease, and CarsDirect allow people to list their leases for transfer. You can search for leases with 12 months or less remaining. This is a great way to get into a late-model car with low monthly payments and minimal upfront costs.

For example, imagine someone leased a 2022 Honda Accord for 36 months but moved overseas after 24 months. They list their lease for transfer with 12 months left. You take over the payments, drive the car for a year, and return it at the end—no long-term commitment.

Specialized Short-Term Leasing Programs

Some companies and dealerships offer short-term leasing programs, especially in urban areas or for specific vehicle types. For instance, luxury car brands like BMW, Mercedes-Benz, and Audi sometimes offer 12-month lease options through their certified pre-owned or corporate programs.

These programs may require higher credit scores and larger down payments, but they provide the flexibility of a shorter commitment. They’re often marketed toward executives, consultants, or people relocating temporarily.

Private Lease Agreements

In some cases, individuals lease cars privately—meaning they lease a vehicle and then sublease it to someone else. This is less common and can be risky because it’s not always supported by the leasing company. If the original lessee defaults or the leasing company doesn’t approve the transfer, you could be left without a car and out of pocket.

Always verify that the leasing company allows subleasing and that all parties sign a formal agreement. It’s also wise to get everything in writing and ensure the car is properly insured under your name.

Dealership Negotiation

In rare cases, you might be able to negotiate a one-year lease directly with a dealership—especially if you’re leasing a high-end vehicle or the dealer is trying to move inventory. However, this is uncommon and usually comes with higher monthly payments or additional fees.

Dealerships prefer longer leases because they generate more revenue and align with manufacturer incentives. A one-year lease disrupts that model, so don’t expect it to be easy or cheap.

Pros and Cons of a One-Year Car Lease

Like any financial decision, leasing a car for a year has advantages and disadvantages. Let’s break them down.

Advantages of a One-Year Lease

• Short commitment: You’re only tied to the car for 12 months, which is ideal if you’re in transition—starting a new job, moving, or unsure about your long-term plans.
• Lower upfront cost than buying: While monthly payments may be higher, you usually pay less upfront than with a purchase. Many leases require little or no down payment.
• Drive a newer car: You can enjoy the latest technology, safety features, and warranty coverage without the long-term responsibility of ownership.
• No long-term maintenance worries: Most leased cars are under warranty, so major repairs are covered. You also avoid the hassle of selling the car later.
• Flexibility to upgrade: At the end of the year, you can return the car and lease a newer model—perfect if you like driving the latest vehicles.

Disadvantages of a One-Year Lease

• Higher monthly payments: Because the depreciation is spread over fewer months, your monthly cost will likely be higher than a 24- or 36-month lease.
• Limited availability: One-year leases are not widely offered, so your options may be limited in terms of make, model, and location.
• Strict mileage limits: Most leases cap mileage at 10,000 to 15,000 miles per year. Exceeding this can cost $0.10 to $0.25 per mile—so a one-year lease with high mileage needs could get expensive.
• Early termination fees: If you need to end the lease early, you may face penalties, even if it’s already a short-term agreement.
• No equity buildup: You’re paying to use the car, not own it. At the end of the lease, you have nothing to show for your payments.
• Potential for wear-and-tear charges: Returning the car with excessive damage or interior wear can result in additional fees.

Alternatives to a One-Year Lease

If a one-year lease doesn’t seem like the right fit, there are other ways to get a car for a short period.

Car Rental

For truly short-term needs—like a few weeks or months—renting a car might be more practical. Companies like Hertz, Enterprise, and Avis offer monthly rentals, sometimes with discounted rates for longer durations.

Pros:

• No long-term commitment
• Wide selection of vehicles
• No credit check in some cases

Cons:

• Can be expensive over time
• No customization or personalization
• May not include maintenance or roadside assistance

Car Subscription Services

Car subscription services like Care by Volvo, Porsche Drive, or Flexdrive allow you to “subscribe” to a vehicle for a monthly fee. These services often include insurance, maintenance, and the ability to swap cars.

Pros:

• All-inclusive pricing
• Flexibility to change vehicles
• No long-term contract

Cons:

• Higher monthly cost than leasing
• Limited availability in certain areas
• May require a membership fee

Buying and Selling

If you’re open to ownership, you could buy a used car and sell it after a year. This gives you full control and avoids mileage restrictions, but it comes with the risk of depreciation and the hassle of resale.

Tips for Leasing a Car for One Year

If you decide a one-year lease is right for you, here are some tips to make the process smoother:

1. Shop Around for Lease Assumptions

Use online platforms to find lease transfers with 12 months or less remaining. Compare monthly payments, mileage allowances, and vehicle conditions. Look for leases with low mileage and good maintenance records.

2. Read the Fine Print

Even in a short-term lease, the contract matters. Check for early termination fees, excess wear-and-tear policies, and mileage penalties. Make sure you understand all charges before signing.

3. Get a Vehicle History Report

If you’re taking over someone else’s lease, request a vehicle history report (like Carfax) to check for accidents, title issues, or odometer discrepancies.

4. Verify Insurance Requirements

Leasing companies require full coverage insurance. Make sure your policy meets their minimum liability, collision, and comprehensive coverage limits.

5. Plan for the End of the Lease

Know what happens when the lease ends. Will you return the car? Buy it? Lease a new one? Having a plan reduces stress and avoids last-minute surprises.

6. Consider the Total Cost

Add up all payments, fees, and potential penalties to see if a one-year lease fits your budget. Compare it to alternatives like renting or buying to ensure you’re making the best financial choice.

Is a One-Year Lease Right for You?

A one-year car lease can be a smart move—if your situation calls for short-term flexibility. It’s ideal for:

• Professionals on temporary assignments
• Students studying abroad or in a new city
• People waiting for a new car delivery
• Those testing out a new lifestyle or location

But if you plan to keep the car longer, drive high mileage, or want to build equity, leasing for just one year may not be the best option. In those cases, buying or choosing a longer lease might save you money in the long run.

Ultimately, the decision comes down to your needs, budget, and lifestyle. Take the time to research, compare options, and read the fine print. With the right approach, a one-year lease can be a convenient and cost-effective way to drive a great car—without the long-term commitment.

Final Thoughts

So, can you lease a car for a year? Yes—but it takes a bit of effort and research. While traditional one-year leases are rare, lease assumptions, specialized programs, and private agreements can make it possible. Just be prepared for higher monthly payments, strict terms, and limited availability.

Before signing anything, weigh the pros and cons, consider alternatives, and make sure the lease aligns with your financial goals. Whether you’re moving across the country, starting a new job, or just want to drive something new for a year, a short-term lease might be the perfect solution.

Remember: flexibility comes at a cost. But for the right person, at the right time, that cost can be well worth it.

Frequently Asked Questions

Can you lease a car for just one year?

Yes, you can lease a car for one year, but it’s not common through traditional dealerships. Most one-year leases are found through lease assumptions or specialized short-term programs.

Are one-year leases more expensive?

Generally, yes. Because the car’s depreciation is spread over fewer months, monthly payments on a one-year lease are often higher than on a 24- or 36-month lease.

Can you end a one-year lease early?

It depends on the lease agreement. Most leases charge early termination fees, even for short-term contracts. Always check the terms before signing.

What happens at the end of a one-year lease?

You return the car to the leasing company, provided it’s in good condition and within the mileage limit. You can also choose to buy the car or lease a new one.

Do you need good credit to lease a car for a year?

Yes, most leasing companies require a credit check and proof of income, even for short-term leases. A higher credit score may help you qualify for better terms.

Is leasing for a year better than renting?

It depends on your needs. Leasing offers more stability and lower monthly costs over time, while renting is better for very short periods or temporary use.