Car Leasing: What Are My End Of Contract Options

Your End Of Lease Options When A Car Leasing Contract Ends.

There are several options for you to choose at the end of your lease agreement. Depending on the type of lease you have, you will be faced with a wide range of options to choose from and the important part is choosing the best option for your needs. While you may be presented with a wide range of options to choose from, be sure that you have considered it all before the current lease car agreement is due.

Whether you have chosen a business car leasing or personal car leasing, it remains important that you know the Best place to lease a BMW and consider the best end of contract agreements.

As your contact inches to an end, there are several approaches you should consider and these include;

  • Extend your car leasing contract 

With contract hire and contract purchase, most leasing companies are open to extending lease terms for their clients. In some cases, contract extension may be as long as 6 to 12 months. However, in such cases as this, there is no guarantee that the monthly repayment fee will remain the same. This is especially true if you have exceeded the contract mileage which has been agreed upon. 

Extension of contract may be a great idea for a number of reasons including;

  • When you are not in a position to sign long term contracts of up to 3 years
  • Lack of confidence in business or economic future
  • Indecision as regards next vehicle for purchase or lease
  • Extension of the contract prior to the arrival of the ordered car.
  • You may choose to purchase your lease car

You may be presented with a contract purchase agreement at the end of your lease arrangement. This agreement essentially allows you to re-acquire the vehicle at the end of the lease term. With this plan in motion, you will be presented with some sort of balloon payment which will afford you the opportunity to gain ownership of the vehicle. 

It is important to note that a contract hire agreement does not offer you the chance to automatically purchase the vehicle. However, if you choose to own the car, you can speak to the leasing company and request to purchase the vehicle.

Buying a leased vehicle at the end of the contract may be a great option when:

  • You know the vehicle well and expect it to serve your needs better
  • It’s such a high-value vehicle which you can pass on to the next generation
  • The final balloon payment may be lesser of a payment compared to what you could buy the car for.
  • The vehicle could last more years under your care and use.
  • Return the lease car

Another option which you may enjoy is the return of the lease car. This is especially a great way to end the contract hire or contract purchase agreement. You can simply, at the end of the lease term, hand you lease car back to the leasing company with no need for further payment, except you have exceeded the mileage agreement as contained in your lease agreement.

Many people, however, choose this option as it is cheaper and also allows them access to other vehicles to meet their luxury needs and demands. If you have chosen to hand over the car lease, be sure to be on the lookout for other options which you can choose to keep the luxury life and appearance up to date.

Perhaps the most advantageous reason for turning in the lease car at the end of the agreement period is that you get to drive new vehicles every two or three years without worrying about the huge financial blow this could have cost you when purchasing a new car and also saving money in taxes.

Early Termination

All contract hire or contract purchase or car lease are set up over a period of time for which the user is expected to pay a monthly fee and use the car. However, in certain cases, the customer may choose to terminate the agreement earlier than usual based on a number of factor including business crash, lack of financial ability to make payments, and more.

The leasing company may, however, demand some form of payment in settlement for the release of the contract which had earlier been agreed upon. The figure demanded to release the lease contract may however depend on factors such as time remaining on the lease, lease company’s policy and more.

Comments

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  2. Very informative and shareable post about car leasing. Thanks for the sharing.

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