What are the pros and cons of extending your lease for six months or a year?
Current mileage is way under the allowed mileage at the end of 36 months and I do not plan on changing driving habits.
Thanks
Depends on when your warranty/maintenance runs out, any upcoming major maintenance like tires or brakes, etc. although minor, you are likely renewing your registration another year too.
Also, the car’s depreciation likely slowed down signficantly so you are paying too much for the car since the lease was calculated based on original lease length. You may be better off buying it out if you plan on keeping it a year or more.
Don’t fret about returning a car under mileage; it’s usually 1% different in MSRP/RV so only a few hundred bucks to go from 10K>12K>15K.
On the plus side, going month to month gives you the flexibility to get a car you like at a great price vs. needing to pick up a new car as your current lease ends. Jan/Feb have not been great months for lease bargains besides for a handful of cars, so waiting a month or two could save you a significant amount on a new lease.
Since you are under mileage, can’t hurt to run a trade-in quote via Carvana to see if their offer is higher than the buyout, which can put some money in your pocket and avoid a potential disposition fee.
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1 falling out of warranty. 2 New car smell is gone 3 short extention has no impact
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I extended my lease as well in December hoping January and February would improve but so far only Infiniti have crazy deals… Hoping March will bring improved numbers across the board. I’m only paying 192 so it’s a low price to stall and not feel pressured. Gives you back power to choose and be patient a bit. Been hoping for small/mid size suv true sign and drive for 250 with tax…
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Curious, for those who have extended the lease, are you just continuing to make the same payment that you were making on the original lease? Does that principal payment act like it’s going into paying down the RV at that point?
So like they say your car is worth $20k at the end of the 36 months, and you been on a constant $250 a month with tax and rent charges, each agreed payment takes a small chunk out of the future pay off to buy the car? Or are things renegotiated, I would imagine no bank wants to negotiate this on a month to month basis.
Also, someone mentioned if you’re going to be keeping the car for let’s say another year, how do the numbers hypothetically work out that buying it at that point makes more sense from a depreciation stand point?
Nothing gets renegotiated AFAIK: There’s no point making lease payments if you want to buy the car.
With many brands with inflated RVs, a CPO with a longer warranty can be purchased for equal to or less than RV
extending a lease for the right reasons makes sense.
Good reasons:
your took out your original lease in September, but want to take advantage of December year end lease specials which tend to be more aggressive than other times of the year.
your lease is a way better payment than current leases of a similar car for a multitude of reasons out of your control such as MF increases, RV decreases etc (as long as you’re under warranty)
you put a lot of upfront cash down on the car to make the payment small, might as well keep the small payment for a little longer and amortize the upfront over more months
they no longer make the car and you like it
Always make sure you’re still going to be under warranty and are not going to have large maintenance costs by extending
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Great feedback above, thank you.
For this point in particular, wouldn’t you want to just buy it out if it’s the end of the line here. Case by case probably.
Def case by case. If you like it and want to keep it then it’s def an option. If you’re looking to keep long term I would consider getting extended warranty as well.
That’s basically what I want to do. I would rather have time to see what what the new leases will look like in spring and early summer rather than being forced to get a new car now because my lease is ending.
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