Car leasing is a great way to get yourself a brand new car when you can’t afford to purchase one outright.
Car leasing is a great way to get yourself a brand new car when you can’t afford to purchase one outright. After all, the cost of a new car can be rather scary, so getting it on a lease is a great alternative.
However, when getting a new car through a car lease deal, there will come a time when the lease period runs out and you have to give the car back. That’s when a whole host of questions can start running through your head. One of the most common of these questions is when you can extend a car lease or not.
Before we answer that, though, is it important to at least cover the basics of how a car lease works.
What Is A Car Lease Deal?
A car lease deal is essentially a financial agreement between you and the dealership. You agree to pay a fixed monthly payment for a set period of time and they agree to let you use the new car.
The cost of this agreement is calculated at a rate that covers the depreciation in value that the car would suffer from being used, so that at the end of the lease period, the dealership can sell it without losing that value. Therefore, the length of time that you car lease runs for has been calculated into the monthly cost of your lease.
With that in mind, let’s answer the question of whether you can extend the car lease.
Can You Extend A Car Lease Deal?
So, as mentioned earlier, the length of time that a car lease lasts for is designed specifically to cover the depreciation of value for the car. As such, it can often be tricky to extend a car lease, as it would mean recalculating the payments.
Due to this, the chance of actually extending a car lease is slim. It largely depends on the dealership, and is their decision in the end. Extending a car lease would likely take time as you would need to negotiate the ongoing monthly payments, which may well increase.
With all that in mind, it is actually a better option to look for a brand new car lease deal. This way, you can “upgrade” your car in a similar way to upgrading a contract mobile, getting the latest model without the need to renegotiate with the dealership.
So, in short, you might be able to extend a car lease deal but it is the decision of the dealership. Therefore, it is better to just let it expire, return the car and get a newer one on a new lease deal.
How To Find A New Car Lease Deal
When you’re getting close to the end of your current car lease period, you should start looking around the see what else is available. Choose a budget, pick a preferred car, and start comparing the different deals.
To help with this, why not take a look at the various car lease deals we have listed here? You will almost certainly find the perfect car at a great monthly cost!