What to Do at the End of a Car Lease?

Leasing a car can be a way to get a more affordable payment on the car you really want. At the end of the lease, you are faced with a few options. Since you do not own the car, you have to decide what to do with it and whether you want to get another vehicle.

Walk Away

One option that you have at the end of the lease is to walk away from the car. Once the lease is completed, you have no further obligation to the car or to the agreement. You can simply decide to drive the car back to the dealer, hand over the keys and then leave. If you do not want to continue driving the car and you have another means of transportation figured out, this might be the best option for you to pursue.

Buying the Car

Another option that you have at the end of your lease is to buy the car. If you really liked your car throughout the lease period and it has been reliable, you may consider buying it. When this happens, you will usually end up paying much more for the car than you would have had to pay if you would have purchased it when it was new. Some leases include a purchase amount that was negotiated at the beginning of the lease contract. In other cases, you may be able to negotiate the price of the car at this point.

Extension

When your lease expires, you may be able to extend it. If you are happy with the car and the payment that you currently have, this might be the best option. With an extension, you simply sign another contract. The terms will basically be the same as what you were already used to with your previous lease agreement. The dealer will continue to own the car and you will continue paying to use it.

Expenses

If you are considering turning your car back into the dealer at the end of your lease, you might have to deal with some extra expenses. Your dealer could charge you for any extra damage to the car or for extra mileage. Throughout the term of the lease, you need to make sure that you do not drive more than your mileage limit so that you can avoid overage charges. You may want to have the car serviced and detailed before you turn it in so that you can avoid extra charges for wear and tear.