As you near the expiration of your vehicle’s lease period, it is natural to ponder upon the alternatives that might be available to you. There’s plenty to gape about such as: would you be interested in keeping your car or give it up, or lease it once again? We can assist you in carefully accessing your options so that at the closure of your car lease term, you are better equipped to make the right decision.
Car Lease Termination Options
Commonly, the auto leases are short-term agreements, generally lasting 2 – 3 years. The timeline is enough to either make up your mind to keep the car or get rid of it. Luckily with leasing, both are possible.
All in all, there are a total of 3 options that are available to you that are part of the car lease agreement.
Keep the car: If you are satisfied with your car’s performance and enjoyed driving it, at the end of the lease timeline, you have the choice of buying it. To do so, you simply pay the agreed pending value, or, if feasible, work out a better deal with the seller.
Give it up: You might not like the car, and that’s FINE too. If that happens to be the case, once the lease term ends, you are free to walk away. Simply pay for the miles driven, maintenance expenses (if any), contract termination charges, and you are free to leave the car with the retailer.
Lease another car: The vehicle might not have appealed to you much, but you’re not ready to give up on car lease yet. What happens to be the most significant benefit of the leasing agreement is that you are not liable to keep the vehicle more than its lease period. As the term comes to an end, you are free to explore and try another option that fits well into your price bracket. This way, you can use and change as many cars as you like.
The best choice for you is entirely dependent on your contracting situation, the lessor, and how much expense you can bear. If you are uncertain about the cost that you’ll need to reimburse when your contract term expires, be sure to review your lease agreement or get in touch with your leasing company for further clarifications.
Getting your vehicle ready for the lease-end
If you choose to turn in the vehicle or lease another car, you’ll need to first ready it to give it back. The process involves ensuring that the vehicle is in the best shape possible, so that you are spared of the hefty fines that could be levied due to unnecessary and excessive wear. Not all rental charges are up for negotiation, so it’s extremely important to make sure your vehicle is prepared before turning it in.
Make sure to wash the car inside out; be sure to refurbish it— as long as it is economical, especially in case of minimal damage. Repairing excessive wear and tear may cost you a fortune, and replacing anything that takes away more than what the rental company may bill you in the name of penalties and fees cannot be a saner option, after all.
Another expense that you may have to pay at the end of the car lease is the penalty for surpassing the fixed mileage charge. If you have exhausted your mileage capping, you could be fined up to 25 cents per mile more than what was stated in the agreement. And, there’s practically nothing that you can do to get it waived off. When the moment arrives, you’ll have to pay the over-mileage tax.
In addition to preparing your vehicle for sending it back to the dealer, if you intend to lease again, it is also a good time to draw your budget. Proper research will give you enough background that can help you crack the best deal and get home a car that fits well with your requirements too.
Turn the car in and walk out.
The rate of new car sales in the United States is approximately 17 million per annum. Some basic calculation suggests that if 30 percent of its total auto buyers lease car, then monthly about 400,000 to 500,000 auto loans come to an end.
If you want to trade over your leased car and walk away, the leasing agreement has got all the clauses to enable the same. There’s no need to keep the car if you don’t intend to once the agreement has reached the termination stage. However, you’ll still need to reimburse the penalties, kms driven and processing fees as applicable before surrendering the vehicle.
To know more about the online car leasing mechanism and attractive offers available with the buyer, visit us now at Oz Leasing.