Can a car lease agreement be extended?

Cost-conscious motorists have long known that car lease agreements are a great way to have your own car with no risk of losing thousands on vehicle depreciation. With the current economic landscape and the rising cost of living, many savvy drivers are seeking to extend their current leasing arrangements until the economic outlook improves. Is this possible, and is it a good idea? Let’s look at the factors to take into consideration.

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Extending is not a guarantee your payments will stay the same

If you wish to extend your contract, your payments may go up because your initial renting period will be over. You should speak to your provider so you don’t get a surprise when making your payment. For those with formal extensions, you will agree to the new price when you sign the new extension contract. For some motorists who are car leasing Bristol and other areas of the UK, it may be cheaper to look at other providers in the area; for example, it may be cheaper to begin a new contract with a company such as https://www.autolyne.co.uk than to extend.

The warranty on your vehicle may end

Most modern vehicle warranties last around 36 months; therefore, if you extend your car leasing agreement, it may go beyond your current warranty period. Industry commentators such as Auto Express have flagged the risk that you may be hit with an unexpected bill from a garage if there is a fault with your vehicle after this time.

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Many firms will allow lease extensions subject to contractual arrangements

Leasing firms want to keep you as a customer, so it should come as no surprise that they are often willing to extend contracts. You will normally enter either a formal or informal extension. Informal extensions mean you keep the vehicle beyond your contract end date in a rolling-type contract. A formal extension offers more assurance and may be a better option if you rely on your vehicle for work. In either case, you should think carefully about what type of extension is best for your circumstances.