If your lease end is coming up, you may want to know if you can extend your car lease. Read on to learn more about car lease extensions and what they offer.
8 minutes
08.25.2023
Years can go by quickly, especially if you’re leasing a car. If you only have a few months left on your lease and aren’t sure what to do afterward, you’re not alone. You have several options, but can you extend a car lease? After all, even an extra month would give you time to figure out your next move.
Dealerships and leasing companies offer varying policies for extending your lease. Some may provide a six-month extension without the rigamarole of paperwork and signing an additional lease agreement. Others may put you on a month-to-month contract that can cost you more in the long run if you plan to buy the car after your lease ends. Keep reading to see your options for extending a lease, depending on which company you lease with.
With all this talk of leasing, it’s easy to overlook a convenient and timely solution. With a FINN car subscription, you don’t have to worry about extending your lease or re-negotiating your current lease agreement. Instead, you can drive the car you want for as little as six months and continue your subscription with a new car each time. With only one monthly payment to budget for, FINN car subscriptions make approaching your next move a breeze.
You can extend a car lease to push your lease end date out a month or more. Many lease extensions run from a single month to around six months, with some extending out for less than a year. You can request a lease extension at any point in your lease term.
In addition to asking what documents you need to lease a car, you can ask about lease extensions when you sign your lease agreement initially. Such a proactive approach can set you up for success and minimize the stress of ending a lease. Leasing companies may also notify you of the option to extend your lease within three months of the current lease end date, but you can also initiate a lease extension yourself.
Lease extensions are separate from lease renewals. In a lease renewal, you sign an agreement with new terms. Lease extensions, on the other hand, may not require renegotiation. However, lease renewals and extensions are subject to availability based on the dealership or leasing company you work with.
Most lease extensions include the same monthly lease payment for the extended period. While some leasing companies charge fees to extend the lease, many are administrative fees. It can be convenient to extend your lease, but lease extensions are short-term solutions.
Some dealerships and leasing companies require a formal lease extension request and agreement, while others take a more informal approach:
Here are a few examples of lease extensions from Tesla and GM:
As you can see, each leasing company has its own rules and regulations surrounding lease extensions. If you’re unsure what lease extension options are available, speak with your lessor.
Your lease extension request may be rejected for several reasons:
Some leasing companies may allow you to appeal the decision to deny a lease extension. However, you should return your lease on the agreed-upon day.
Extending even the best car leasing deals may be a poor choice in the long run. However, each lease agreement is unique and requires careful consideration. Here are a few ways to know if it’s an excellent time to extend your car lease:
Most new cars come with a three-year, 36,000-mile warranty you’re likely covered by with your lease. However, you should know when that warranty coverage ends and when your lease expires. If your lease ends after the warranty is up, you could be liable for costly repairs.
Lease extensions can be a double-edged sword. Here are a few pros and cons to consider if you want to extend your lease.
Extending your car lease doesn’t necessarily change the residual value in your favor. Instead, most lease extensions roll forward with the same residual value in your original lease agreement. Such an arrangement can make finding the best time to lease a car even more critical to your bottom line.
Remember that the leasing company determines the residual value at the beginning of your lease. The residual value is also the price you’ll pay if you want to (and the leasing company allows you to) buy the car once the lease ends. If you extend your lease for a month, this shouldn’t significantly impact what you pay for the car, but any longer than that could have you paying more for a car that’s now worth less.
If you plan on buying out your lease, consider your options carefully before you look into lease extensions. The monthly payments you make over your original agreement may cost you more than buying or financing the car on your original lease termination date. It can be worthwhile to calculate the difference to see what impact a lease extension can make.
Choosing between extending your car lease or ending your lease agreement can present a challenge. However, it depends on your situation, from the leasing extension terms offered to you to your financial situation. Car lease extensions are short, which can help float you along until your circumstances are more favorable. However, waiting too long can put you at an increased risk of financial loss.
If all this talk of lease extensions has you clutching your head, don’t fret. FINN offers a convenient solution that allows you to pick and choose which models you drive. Select your favorite among the FINN fleet, and you can have it delivered straight to your door. Your monthly payment covers most of your costs. What’s not to love about a FINN car subscription?
It can be difficult to return your car and move on to the next vehicle, especially if you just need a few more months to get the funds together for a lease buyout. Lease extensions offer the flexibility to push your lease end date out a few months without significant penalties. If you’re facing hefty fines for excess wear and tear, a lease extension could be the lifesaver you’ve been craving.
Leasing isn’t the only short-term option you have. With a FINN car subscription, you can subscribe to a car for between six and 12 months. FINN includes insurance, maintenance, depreciation, and registration in a single monthly payment that’s budget-friendly and predictable. Subscribe to a FINN car today to see the difference.
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