How Long Can You Lease a Car?

When leasing an auto, the lessee may have questions, and not all of these questions will relate to money. There are two key aspects to this enterprise, and besides funds, it’s time. Deadlines become questions of absolute importance, so it is necessary to have patience and communicate when studying them. So, how long can you lease a car? Is it better to lease it for an extended or a short period? Can you extend a car lease or start a new one when the period is over? If you need more information on all these aspects, we think it is the time to start.

Types of Car Leasing Perms

As you see, the leasing period is the time during which you can drive the car of your choice on the terms of the leasing contract. You can discuss how long you plan to have this vehicle at your disposal during the first visit to the leasing company.

If we take the leasing periods in general, automobile brokerage firms usually operate within a period of two to five years. The term of the contract can be stated in months, then it will be 24, 36, 48, or 60 months. As a rule, all these periods are divided into several groups depending on the duration.

Short-Term Lease

This option implies driving your leased car for up to 2 years. In this case, companies consider both financial risks and vehicle depreciation in a certain way, so monthly payments are often higher. However, this does not frighten lessees, who see more benefits for them. The lack of a long attachment to the vehicle and the ability to change brands and models more often are in the hit list.

Not all car brokers offer short-term leasing, because it can be simply unprofitable for them. Besides, dealers working with such companies may ban some models for short-term deals because they are afraid of extensive depreciation. In this case, you will have less choice and it will not play into your hands.

Mid-Term Lease

The period between two and three years is called mid-term. This option is very popular, and many experts and experienced lessees often call it the golden mean. Variety of offers and medium if compared to short and long-term deals monthly payments give you some flexibility and let you keep your budget at rest.

Still, do not forget about such issues as the manufacturer’s guarantee of your leased vehicle. The period from two to three years just gives the opportunity to drive the car without thinking about the large bills for service and repair in case of failure of any components or units not due to your fault.

So, with medium-term leasing, you drive a good car, pay quite reasonable money per month, and are still under warranty protection. To say the picture is quite tempting.

Long-Term Lease

All leasing contracts concluded for a period of three to five years are considered long. The lessee can benefit from this because monthly payments are the lowest.

On the one hand, it is a benefit, as you can look for a more expensive vehicle that you could not afford on a mid-term lease. On the other hand, it is possible that the car will bore you before the contract expires and you will have to think about early termination, which requires time and costs.

Besides, long-term leasing does not correlate with the manufacturer’s warranty on a particular model, so be prepared for its expiration before the end of the contract. Next, you are already responsible for the condition of the car, but whether you are ready for it is a question that requires more detailed analysis.

Thus, leasing for 24 or 36 months is considered perfect in many respects, so tenants often prefer such conditions. However, the period you will be offered may depend on your credit score, your intention to trade in, the car’s predicted residual value, and some other factors.

Can I Extend My Car Lease?

Not all tenants are happy to part with their vehicles when it is already necessary to terminate the contract, because the period turns out to be not long enough. That is why many are willing to ask for extension under certain conditions. So, can a lessee extend the leasing period?

In fact, many auto brokerage companies quite provide this option. However, in this case, be prepared for new conditions and limited periods when extending. Do you feel determined? Well, let’s see what we can do.

How to Extend My Lease?

In general, you have two ways to extend your current leasing contract. Depending on your situation, you can choose the most convenient or try alternative options for your lease.

Formal Extension

This is a fairly serious form of deal, when the company can set new terms, mileage, and payments. You can extend the contract for a period from 6 months to a year, and the agreement will begin immediately after the closure of the previous lease agreement.

Reasons for making everything official can be different. Most often, this is the desire to drive a particular make or model for a little more time because of the lack of a new suitable option or the intention to properly prepare for the purchase of another car. This solution is quite reasonable, moreover, you feel protected.

Informal Extension

If you want to extend it all now, but not for a long period in the future, you may well consider this option. Here, you get less paperwork and negotiations. All you need in this case is just call your company and ask them about it. If there are no problems during the lease period, brokers go towards it. You continue to use your vehicle under the same conditions and with the same monthly charges.

However, informal extensions can’t last more than six months. At the end of the period, you need to decide whether to return the car to the broker or buy it out under the terms of the contract. Although, the step into a new leasing deal for the same car for a shorter or longer period is also possible.

Some Tips on Extending Your Contract

The desire to extend your driving of a certain car is natural, but it may be impulsive and not quite suitable for you. In fact, it can even cost you more in the end. Experts give some tips that will help you make the right decision and prepare for the extension better or even abandon it in favor of more advantageous options:

• Start thinking about it for a while before the end of the leasing period. The decision to extend or not to extend your contract may be rash if taken in haste. Some companies may contact the customer and offer this option among others, but do not rely on this scenario in its entirety. Start weighing all pros and cons about 30 days before expiration.
• Assess your chances of extension. Auto brokers can make a decision based on customer reputation or their own position. Late payments and other irregularities within the current contract will hardly tip the balance in your favor. Besides, the dealer can request a recall of some of the cars after leasing for a number of reasons, so it may become available. In both cases, think about other options.
• Consider all possibilities. Deciding to extend, you may not make the most advantageous step. Switching to a new lease with better terms can promise you a more enjoyable experience. Also, if you head over heels with this very vehicle, why not think of buying it out? Some companies offer this opportunity at very attractive prices, so it is possible that you and this car have found each other.

Conclusion

As you can see, you can lease a car for two to five years and even think about how to extend the period. Act intelligently and in a balanced way and communicate more with your auto broker to get new offers and find the approach to leasing!