Different Options for You at the End of Your Lease

(Newswire.net — March 1, 2016) New Jersey — Leasing options are some of the best choices for many car buyers who are shopping for vehicles. Leasing provides flexibility that works for a lot of customers, especially those who do not want the long term commitment associated with buying. The lower down payment, lower monthly payments, and lower costs associated with repairs, are a few of the easily highlighted pros of leasing versus buying.

There may be some cons that can deter potential leasers, however, weighing those cons against the positive options to be considered at the end of a lease may sway the buyer who is not yet convinced.

At the end of a lease term, there are several choices available. If you haven’t made a permanent decision, or if you are unsure of what to do at the end of your lease, below is information on some of the choices that are available.

Re-lease the same vehicle.

The option to re-lease the vehicle is available to everyone who has come to the end of their lease on a new vehicle. The terms of a re-lease would differ from the terms of the original lease in that, it would be considered a new lease on a used vehicle. Used car leases are slightly different than new car leases. The specific terms would have to be discussed with the dealer.

Extend the existing lease.

A lease extension is a popular choice for customers who have thoroughly enjoyed their leased vehicle, but are unsure about what they want to do on a more permanent basis. At the end of the original lease term, depending on the terms of the original lease agreement, you could extend the lease for a period of time past the original lease end date. Some fees may be associated with this option. The terms and payments of the time period covering the original lease, may or may not be maintained during the extension period.

Return the vehicle.

This is the most straightforward choice available. At the end of the lease term, the car is simply returned to the dealer. Any applicable terms under the terms of the lease agreement will be addressed at the time the car is returned. This could include mileage overages, wear and tear issues and any other end of lease items that may need addressing.

Sell the vehicle.

Selling the vehicle at the end of a lease term, first includes purchasing the vehicle. In essence, the dealership will allow the lease holder to purchase the vehicle. This purchase price would include any leftover fees from the terms of the lease. After the vehicle has been purchased by the leaseholder, the dealership would then buy back the vehicle. At that time, the lease holder would receive any available proceeds remaining from the buy-back value of the car.

Trade in the vehicle.

When a leased vehicle has retained its value, the vehicle can be traded in and the value that remains can be used toward the purchase of a new vehicle. The value can be applied as a down payment or toward the vehicle’s total purchase price. This option is best suited for owners who have marinated the vehicle well and who have taken care not to exceed the mileage restrictions.

The no hassle environment at the end of a lease term, makes leasing more attractive to a wide variety of car buyers. Whether you are trading in a vehicle or extending or terminating a lease, each driver should know that they have options.

Each of the options above present pros and cons for the buyer. Each should be considered by the individual customer.