The length of time a vehicle is leased for, typically 24, 36 or 48 months. The shorter the term, the higher the monthly payments.
In the context of cars, a contract term refers to the specific duration or length of a contractual agreement between a driver and a car dealership or leasing company. It outlines the agreed-upon period during which the driver will have access to and use a particular vehicle.
In the UK, contract terms are commonly associated with car leasing arrangements, where individuals or businesses can rent a vehicle for a fixed period, typically ranging from 12 to 48 months. During this contract term, the driver pays a monthly fee to use the car, which covers factors such as depreciation, maintenance, and financing costs.
The contract term in the UK often includes specific mileage allowances, which determine the maximum distance the driver can travel without incurring additional fees. Exceeding the agreed-upon mileage limit may result in extra charges at the end of the contract term.
At the end of the contract term, the driver typically returns the vehicle to the dealership or leasing company, unless there is an option to extend the agreement or purchase the car outright. It is crucial for UK drivers to carefully review and understand the contract terms before entering into any car leasing or financing agreement to ensure they are aware of their rights, responsibilities, and potential costs involved.