Life After Lease: What to Do After a Car Lease

Like all financial arrangements, car leases eventually expire, usually after a span of four years (the most common car lease term duration). Once the lease ends, buyers have a number of options available to them: they can either choose to return their vehicles to their lenders, extend their leases for a few months more, or opt to purchase the vehicle from the owner. Learning when to choose one or the other is important in order to get the most out of a vehicle lease.

 Say you cannot make up your mind, and you do not mind using the same leased vehicle all over again; instead of giving back the vehicle, you can extend your lease to use the same car. This can be an attractive option if you are still financially-restricted and you have no immediate means to acquire a replacement automobile. If you choose to do this, make sure that the agreement you signed with your lender allows for this arrangement.

If you have grown to love your leased car during the course of its term, then perhaps you should purchase it. Buying a car previously on lease might be a smart and economical move, especially if the car remains in good and serviceable condition. To maximize the purchase of a leased car, you should first compare its residual price versus its current market price; if its residual cost is lower, then your purchase becomes a reasonable deal.