We are in unprecedented times in modern history as this is being written. Caught in the midst of a global pandemic, societal norms have been upended in many different ways — including business. If you`re currently driving a leased car on which the contract is nearing an end, you`re probably wondering what your options are in light of this new paradigm. It can be useful to know how to extend a car lease if you`re concerned about visiting a new car dealership. Or, perhaps you`d rather just hold on for a while to see how things turn out.
In ether case, here`s what you need to do.
Ask — Ye May Receive
Many auto finance companies have anticipated this demand and made the process simple to complete. A Consumer Reports article cites the case of a Santa Barbara, Calif. woman who got it done in five minutes over the phone. Financiers are doing this willingly because they know it will help them hold on to customers. This consideration is particularly significant when taken in conjunction with the depressed demand resulting from the economic upheaval the pandemic has created.
Pay Attention Though
In many cases, the duration of a lease is extended at the same rate, with the same residual values and monthly payments. However, you have to be careful to ensure that is the case in your situation.
In some instances, rather than simply extending the terms of the deal, a company will write a new lease. If that`s true for you, the parameters of your deal could change and you`ll need to determine if doing an extension really makes sense financially.
After all, companies are making pushes to get people into new cars as well. It could be one of the best lease deals out there might serve you better than staying in your current one. The only way to be certain is to compare the terms of the extension to what you could get from contracting an all-new agreement on a different vehicle.
Is Your Car Worth Keeping Longer?
Lease contracts typically stipulate the vehicle be maintained by the book. Further, most also impose financial penalties in the case of abnormal wear and tear. However, the fact remains corners can be cut without being readily discernible. Certain maintenance procedures, such as timely oil changes, can be overlooked and won`t show up immediately.
In these instances, the engine could be suffering internally and heading toward a catastrophic failure. If you know this is the case, you`ll likely want to get out of that car anyway — even if the company is willing to extend your lease.
By the way, this is a really bad thing to do. You`re setting some other individual up for expensive repairs down the road. Your fellow human beings deserve more consideration than that, even if you don`t believe in Karma.
Unprecedented Times Inspire Unprecedented Measures
These are indeed unprecedented times. And, while the new normal will be considerably different than the old one, some truths will remain the same. Companies need business to remain solvent. After enduring many months of reduced revenues, many are willing to consider unorthodox solutions to keeping clients in the fold.
It never hurts to ask; you might find the company with which you`ve contracted is willing to make you a better deal. The fact of the matter is lease extensions are not really a new thing. In regular times, they generally require an additional fee, or your payments might change a bit. However, given the way things are now, many companies are making concessions in these areas just to keep the business.
It never hurts to ask.