I previously extended my lease for six months, and the finance company recently offered another, so I put in a request. The first was simple, they presented the extension, I accepted, and I did not have to sign anything (i.e., no new contract). It was an uncomplicated month-to-month extension with a maximum of six. The second is requiring me to sign a new agreement. Everything reads as it should number-wise, but an up-to-date portion explicitly details what many discuss here - insurance payments. For example, if the vehicle is totaled or stolen, the Holder receives the proceeds. There is also an entirely new arbitration provision. I get why they are doing this; the old agreement works in my favor and the new one in theirs. But I realized I never read (or perhaps paid attention to) whether others are signing new contracts for their extensions. Or has it been a process similar to my first, where nothing is signed?
Recently signed my second 6 month extension with Toyota FS and each time was a 4 page signature required document that I needed to send back to them. It doesn’t discuss insurance overages however it does state that I give them permission to endorse any insurance company checks…whether an overage will come back to me was not in the contract. Similar to yours it was 6 month extension on a month to month basis. It doesn’t appear to be pro-rated by the day so when I do get the equity I’ll have to time it for my due date and hope Driveway isn’t the top offer. Shout out to our resident Toyota expert @Cody_Carter for letting me know that TFS will do more than one 6 month extension. Sadly I missed out on the 4Xe wagon, I do need a vehicle so another extension was the way to go for me and sounds like for you as well.
It surprises me that Ford wouldn’t have you sign something however it may be an implied contract once you send them a payment.
It seems several captives have taken advantage of the lessee presumably needing the extension more than they do, such as NMAC no longer reducing the RV with extensions.
The language in this agreement swings a great deal in their favor. Due to the last extension requiring nothing on my part, I was not expecting a 7-page contract. Instead, there is a Loss or Destruction of Vehicle addendum, new Arbitration Provision, and a Vehicle Insurance update that was not a part of the original agreement. All of them make me feel a bit uneasy about signing. I fully understand that the vehicle does not belong to me, and I am under no obligation to sign; I wondered if this is the new normal in extensions.
I have ten days to accept the offer, but the lease end is not until early July.
I called Ford and spoke about my hesitation to sign the extension agreement. They will not require it, and the original lease will continue. My main concern was the original contract allowed insurance overages to go to me; the new extension took that away. Problem solved.
And the residual value will reduce as I make payments, just as with the previous extension.
I’ll be extending my wife’s USBank 4Runner lease in October when it comes up and then re-evaluate at the end of that. Does USB allow a second extension if needed? Anyone know?
Even if they did, why would you? Buying time and waiting to “re-evaluate at the end of a lease extension” is probably going to leave you in the same position you are now, i.e. RVs and MFs suck and in-stock inventory goes for way more than judiciously placed orders.
Pick something you’re willing to finance if lease programs aren’t better, and order it ASAP.
