Is Your Car Lease Ending? Get to Know Your End-of-Lease Options
You’ve driven your leased car for some time now, and the term of lease is about to expire. Naturally, you have to give the car back to the leasing company when the time comes, but did you not that retuning the car is not your only option? Actually, you can do four things with your car at the end of your lease: Return, Replace, Extend, or Purchase the vehicle.
Good reasons to return the vehicle is when you don’t need the car, cannot make the payments anymore or are looking to lease a new car. Before your vehicle return date, have your vehicle inspected for excess wear and tear, as these can be charged to you and add to your expenditures. If excess wear and tear is discovered, repair these before returning the vehicle. More likely than not, you’ll pay less for repairs than having them to charge you for the overuse.
If you have a good record with your lease provider, then you may very well lease a new car with them. Leasing allows you to have a new car all the time, which can be important if you work in a career where keeping up appearances is critical, such as a real estate agent, car dealer or networking scam artist. Not to mention, it can also be a big ego boost.
You might as well purchase your leased vehicle if it serves you well and you want your payments to end. If you would like to purchase your leased vehicle, simply contact your leasing company or dealership before the end of your lease term. Once you’ve expressed the desire to purchase, your lessor will arrange your documents so you can proceed with the purchase process. Normally, purchasing a leased vehicle means you will no longer be charged for excess mileage or additional wear and tear brought on by use.
Extending your lease is a good idea is if you have a short-term need for the vehicle, and you can no longer see yourself owning the vehicle beyond that projected point. Generally, this option is only available to you if you have a short lease period (six months to one year) and the odometer is still very low. Just as it is with purchasing, you have to inform your lessor beforehand that you plan to extend your lease so they can update the paperwork.