Can You Extend A Car Lease? Everything You Need To Know
Source: Pixabay
Leasing is an attractive option for those who want convenience, versatility, and a way to save some money. With skyrocketing popularity and growth, dealers and lenders are offering more leasing options, and that’s a good thing.
These days, one of the most common questions that people have about this matter is: can you extend a car lease?
We’re amid the COVID-19 global pandemic, so, understandably, you’re concerned about the end of your lease. After all, you probably don’t want to leave home without a car and spend time on public transportation.
For today’s quick guide, we’ll talk about car lease extensions along with some strategies for end-of-lease options.
Here’s What You Need to Do to Extend Your Lease
Can you extend a car lease? Absolutely! All you need to do is ask.
Of course, it will depend on the dealership or leasing company, but in general, it’s in their best interest to make it easy for customers to stay in their cars. In the case of leasing, people who lease are more likely to lease again. For a car company or bank (or just about any business), repeat customers are highly valuable, especially with the ongoing economic downturn.
Also, with the current economic climate, customers struggling with their lease payments are presented with several short-term solutions from leasing agencies. Again, it varies between manufacturers, but it’s worth asking the provider about your options in extending the lease.
Most dealerships and leasing companies will be more than happy to extend an expiring lease. Some lenders may even allow customers an extension on a simple month-to-month basis. Other companies may provide extensions with a predetermined duration like 3 to 6 months with a maximum of 12 months.
The best part of getting an extension is that your monthly payments will remain, along with the mileage restrictions. Be sure that you double-check the terms of the extension before signing in.
Arranging an extension is as easy as calling your lender and making a request. If you don’t need that much time to keep your car, try asking for a 10-day extension.
BE CERTAIN YOU’RE GETTING THE BEST DEAL
CoPilot searches your area and lets you know if there’s a better deal on a similar vehicle nearby, so you’re always certain you got the best deal possible. The CoPilot app is the smartest way to buy a car.
It Pays to Communicate
Many people are asking, “can you extend a car lease?” In many instances, all it takes is good communication with a dealer or lender.
If you’re having challenges with your existing lease but still want an extension, you’ll want to communicate that with your lender. Dealers and lenders value customer loyalty above everything and are happy to make small concessions to keep a business relationship going.
You might not know this, but leasing agencies have everything to gain by allowing more flexibility. It’s not in their best interest to get back those vehicles right away since they have to pick them up and remove them from the balance sheet - that’s extra difficult during these uncertain times.
Unfortunately, there’s no one-size-fits-all approach to car leasing. Most lease extensions are still handled on a case-by-case basis. But still, it always pays to communicate your needs when it comes to your lease.
End-of-Lease Options Guide
Many people go through a leasing contract but have no idea what to do once their lease expires. Thus, to complement this lease extension guide, we’ve compiled several tips on what to do at the end of your lease.
HOW OFTEN SHOULD YOU REPLACE YOUR BRAKES?
Unless you’re a mechanic or super-dedicated car enthusiast, you might not know much about the brakes on your car. How long do they typically last? How often should you replace your brakes? We’ve got answers
Begin Your Research About 120 Days Before Expiration
About 120 days before the end of your lease, it’s the best time to look over your lease contract. There’s a good chance that you haven’t checked it for a long while. One of the most important things to look for is the car’s residual value, aka lease-end value.
Residual value refers to the estimated amount that you can purchase the vehicle by the time the lease ends. In most cases, a car’s residual value is fixed. Even if you have no plans of purchasing the leased vehicle, knowing this number lets you know if you have equity.
End-of-Lease Options You Should Know
Most customers are often surprised to find out that they have equity on a leased car. Thus, before you turn in your keys to the lender, check for your equity. As soon as your lease expires, you typically have these options:
- Walk away - Should you decide that you don’t have anything to do with your vehicle anymore, you have the option of walking away. In this case, you’re liable to pay for the disposition fee, excessive wear-and-tear charges, and excess mileage charges if applicable.
- Trade-in the vehicle - The car you just leased can be used as a trade-in for any make and model you prefer. An excellent benefit of trading in your vehicle is that you get to avoid being charged for the disposition fee, wear-and-tear, and excess mileage.
- Buy the vehicle - As the lessee, you’re first in line if you wish to buy the vehicle once the lease ends. The predetermined residual value is the amount you’ll pay if you choose to buy the vehicle. Next in line in case you pass is the dealership, and in the event of a non-purchase, the lender simply gets the car back and sends it to auction. Like the trade-in option, you are exempted from paying the usual end-of-lease fees if you buy the vehicle. Also, some dealers may offer incentives if you purchase the leased vehicle and finance it with them.
Many dealers or leasing companies may give you more options, such as the ability to renew the current lease.
THE BEST CARS FOR SNOW
Winter driving impacts young and experienced drivers alike. We’ve compiled a list of the best cars for snow, so you can get from Point A to Point B as safely as possible.
The Bottom Line
Can you extend a car lease? Many people are surprised that they can by simply asking their dealer or leasing company. During these challenging times, an extension can go a long way to help your automotive needs. Therefore, don’t be afraid to ask, and you may be surprised at how easy it is to extend your lease.
However, make sure that you double-check the terms that come with the extension. Also, remember that you have several end-of-lease options other than simply asking for an extension.
Get a Curated List of the Best Used Cars Near You
The CoPilot car shopping app is the easiest way to buy a car. Tell us what you’re looking for and we’ll search the inventories of every dealership in your area to make you a personalized list of the best car listings in your area.
Only looking for newer models? CoPilot Compare is the search engine for nearly-new cars. Only see cars five years or newer with low mileage — CoPilot Compare is the best way to find off-lease, early trade-in, and CPO cars.
The best part? CoPilot is built using the same technology that dealerships use to buy and sell their inventories, so we have more info on each vehicle than competitors. CoPilot doesn’t work with dealerships, so there are no sponsored posts or other shady practices — just the most info on the best cars. Check out our About Us page to see how CoPilot works.
