Yes, you may be able to extend your car lease! Some auto leasing companies allow it, and it could be as simple as a quick phone call.
Is Your Car Lease About to End?
It can be stressful to approach the end of your car lease without another vehicle lined up. If you’re not ready to finance, take on another lease, or you haven’t made any decisions yet, you may be able to ask your lessor to extend your auto lease to give yourself more time.
Some leasing companies require that you extend your lease for a set amount of time, such as three or six months – or as little as a few days. To extend your lease, contact your leasing company. You may be able to start the conversation online, too.
However, you should know that extending your lease doesn’t increase your mileage allowance. If you extend your lease, you still must stay under your mileage limit. If you go over, you face over mileage charges. You may need to purchase additional miles if you're extending your lease for more than a few days. Many leasing companies charge around 15 to 25 cents per mile if you go over.
Turning In Your Auto Lease
Many borrowers turn in their lease for another leasing contract. The appeal of driving a new car every two to three years is one reason many people choose leasing over financing.
However, if you really like the vehicle you’ve been leasing, and are considering extending your lease so you can have it a little longer, buying it out may be a better option.
When you first start your car lease, the vehicle’s residual value (what it’s worth at the end of the lease) is estimated. This is also the price at which you can purchase the car. Now may be the time to purchase the leased vehicle – used car values are up this year.
The coronavirus pandemic has inadvertently risen the values of used vehicles. Since automakers were forced to shut down production near the beginning of the year, new car inventory decreased, creating a demand for more used vehicles.
Used car values rose as a result, which could be good news for your lease. If you have a lease that’s about to end, check its current value and compare it to the residual value, as you may be able to buy out your lease for more than the vehicle is worth.
You may find its actual cash value is higher than its residual, and it could yield you some extra pocket change if you buy it. Buying out your car lease means you may be able to turn around and sell it for a profit!
Getting Ready to Finance?
Leasing a vehicle isn’t for everyone. If you no longer want to worry about going over mileage, paying wear and tear fees, paying security deposits, and want the ability to customize your ride, then financing may be for you.
Finding a dealership that can work with unique credit situations can be a hassle. If you’re struggling with poor credit and need special financing, start with us at Auto Credit Express. We’ve been connecting borrowers to dealers with bad credit resources for over 20 years. Complete our free auto loan request form, and we’ll look for a special financing dealership in your local area.