Key Facts – Extension Terms
This is a summary of the key facts regarding car lease extensions which can provide flexibility if you’re not ready to return your leased vehicle when the lease term ends. Here are some key facts to understand:
Select Car Leasing is a trading style of Select Contracts (UK) Limited, and the firm is authorised and regulated by the Financial Conduct Authority FRN 670832. Select Car Leasing are a credit broker not a lender.
Please contact your leasing consultant or our end of contracts team to clarify your finance providers process, fees, and available options for an extension.
Lease Extension Types
➢ Formal Extension: You enter an official extension facilitated by Select Car Leasing. This is often with a fixed term (e.g., 6 or 12 months) please note this can vary depending on the finance provider.
➢ Month-to-Month Extension: Certain finance providers offer a month-to-month extension option, enabling you to retain the vehicle without committing to a fixed extension term. Please be aware that end-of-contract charges, including fees for excess mileage, may apply. Please note this can vary depending on the finance provider.
Monthly Payment Adjustments
➢ Monthly payments may vary based on factors such as mileage, term, maintenance options, and warranty coverage.
Mileage Considerations
➢ Additional Miles: The original lease mileage cap often remains, but extra miles driven during an extension will contribute to any over-mileage charges. Some companies may let you adjust your milage, this can vary depending on the financer provider.
➢ Reduced Mileage Fees: If you wish to reduce your mileage, this option can be reviewed; however, it remains subject to the finance provider's extension policies.
Vehicle Condition & Maintenance
➢ Wear and Tear: You are still responsible for maintaining the vehicle and any wear-and-tear repairs. Prolonging the lease might increase the likelihood of incurring extra fees for wear and tear.
➢ Warranty Extension: The manufacturer's warranty might expire if you extend the lease, leading to additional repair expenses.
Impact on New Lease Deals
➢ Timing Flexibility: Extending can provide flexibility if you’re waiting for a new model release or a better lease deal. However, be cautious about timing as some promotions may not be available when the extension ends.
Early Termination Options
➢ Lower Residual Value: During the extension period, the residual value may decrease, potentially making a buyout more attractive. Please note that not all finance providers offer a driver buyout option.
➢ Buyout Negotiation: In some cases, you may be able to negotiate the buyout price based on current market conditions, particularly if the vehicle’s market value is lower than the original residual value. However, this is not guaranteed and is subject to the terms of the finance provider. Please note that not all finance providers offer a driver buyout option.
Insurance Requirements
➢ Continued Coverage: You are still required to keep the same level of insurance as in the original lease agreement. This coverage may extend even if the lease is month-to-month.
End-of-Term Fees and Penalties
➢ Late or Early Return Penalties: If you terminate the extension early or go beyond the agreed end date, additional fees might apply.
