WHAT TO DO AT THE END OF YOUR VEHICLE LEASE?
One of the main reasons customers enjoy leasing a vehicle is the number of options you have at the end of the lease. A lease offers an opportunity to take advantage of circumstances that may have changed regarding vehicle needs, budget, lifestyle and other factors which may need to be considered. If you are one of the many customers who chose a lease and you are coming close to the end of your lease, following a guide to show all of your options and advantages can make choosing the right option for you, the first time. Take the stress out of the end of your lease with this quick guide.
What Are Your Options at Lease End?
When your lease payments are due to end there are several options that you have. You can:
- Walk away from your lease at the end of its term, assuming the vehicle is in good shape this can often be done without lease end wear and tear or km charges.
- Trade in your leased vehicle for a new or used vehicle.
- Trade in your leased vehicle for a new leased vehicle.
- Extend your lease.
- Refinance or buyout your current leased vehicle.
Walk Away from the Lease
Walking away from your leased vehicle and returning it to the dealership is a good idea if you’d prefer not to continue driving the vehicle or have purchased a replacement vehicle elsewhere. A lease end inspection is required to determine the condition of your vehicle. Assuming you haven’t gone over the kilometer allowance and the vehicle is in good shape this can often be done for no extra charge.
Trade-in Your Leased Vehicle for a New or Used Vehicle
For customers who prefer to fully own the vehicle, trading in your lease for a new or used vehicle to finance or outright purchase is a great choice. The ability to finance a new or used vehicle gives you more flexibility on getting your ideal vehicle and payment regardless of if you are upgrading or downsizing your vehicle. For example, minivans are more expensive than cars but being able to buy a used minivan for a lower monthly payment than you are currently paying can be a lifesaver in the event of a sudden lifestyle change like having children.
Trade-in Your Leased Vehicle for a New Leased Vehicle
Trading in your leased vehicle for a new lease is one of the best ways to have a new vehicle every few years while still having the same car payment. Dealerships will often contact lease customers closer to the end of the term with special offers to get into a brand new version of the current vehicle you’re driving for the exact same payment or even less.
Extend Your Lease
Extending your lease allows you to continue driving your current vehicle without needing to fully commit to buying or financing it. If you are worried about future maintenance costs, or don’t see yourself driving the vehicle down the line but still need a reliable vehicle in the meantime then extending your lease is a great option for you. Similarly, if you know a promotion or pay raise is a few years away this option allows you to keep your vehicle payments similar in the meantime while avoiding the hassle of selling it yourself or trading it in down the line.
Refinance or Buyout Your Current Leased Vehicle
If you’ve loved driving your leased vehicle and want to drive it for the foreseeable future, financing or outright purchasing your leased vehicle is most likely the best option for you. Customers who want to drive their vehicle for years to come and don’t want a monthly car payment tend to choose this option. Similar to extending your lease this can be a great option if you foresee a lifestyle change down the road but not in the immediate future.
Hopefully this guide helps you discover the best option for you at the end of your vehicle’s lease. Knowing the right option for your unique situation can be daunting, if you are still unsure don’t hesitate to contact our Financial Service Managers who are experts when it comes to your vehicle’s lease and can help you make the right decision, the first time.
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