Can I extend my lease contract?

Yes - but not indefinitely. 

Leasing means you’ve got no ownership options at the end: You’re contractually obliged to return the car.

But there are situations when the finance company may let you keep the keys for a little longer.

Maybe your next lease car has been delayed, leaving you without a vehicle if the contract ends on time. Or your circumstances have changed and you need the stability of the fixed payments for longer than expected.

Whatever the reason, if you need an extension you’ll need to talk to your finance company as early as possible about what type of extension they’d be willing to grant you.

It could be in the form of a fixed term; maybe extending for another year if you’re on a shorter lease cycle. Or it could be on a rolling basis if you just need a short-term solution to keep you mobile.

But before agreeing to extend, there are some bits you should consider:

• Will your monthly payment change, and can you afford it if it does? 
• Does longer with the car put you at risk of tipping over your agreed mileage allowance, and will the funder let you adjust the limit? 
• WIll the manufacturer warranty expire during the extension period? 
• Will your insurance company charge an admin fee for extending cover? 
• Will the finance company charge you an extension fee? 

These are all things worth asking about before you make the decision to extend your lease. Because it’s not quite as simple as just holding onto the car.

It’s a whole new financial decision you’ll need to weigh up carefully. And these factors will vary depending on what kind of extension you’re offered.

Once you’ve balanced all the associated costs and risk, you may just decide it’s not the right route after all.