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How Can I Extend a Car Lease? Should I?
Published 4/21/25
Estimated Read Time: 6 minutes
TL;DR: Yes, you can extend your lease, but should you? It might cost you more in the long run. We’ll break down your options—including why a lease buyout might be the better move for keeping the car you already have (and like).
If you're nearing the end of your car lease and you want to keep your current ride, you might be wondering: can you extend a car lease?
The short answer is yes.
But should you? That's where things get interesting.
The short answer is yes.
But should you? That's where things get interesting.
Extending your lease might sound like a quick fix if you love your car or just need more time. But depending on your situation, it might not be the smartest financial move. Let’s go over the pros, cons, and why a lease buyout could be the better long-term option.
Table of Contents:
What Are My Lease Extension Options?
Pros and Cons of Extending a Car Lease
How Do I Extend a Car Lease?
Other End-of-Lease Options
How Lease End Can Help
Pros and Cons of Extending a Car Lease
How Do I Extend a Car Lease?
Other End-of-Lease Options
How Lease End Can Help
What Are My Lease Extension Options?
TopYou've got two ways to extend your lease: an informal extension and a formal one.
Informal lease extension
- No new contract—you just keep making your usual monthly payments.
- Typically lasts up to six months max.
- Good if you just need a little extra time to decide.
Formal lease extension
- Requires a new contract, and your monthly payment might change.
- 6-12 months is the typical extension period.
- Can include a new mileage allowance (but also extra fees).
Pros and Cons of Extending a Car Lease
TopSo, a lease extension seems pretty straightforward, right? We all know, though, that there’s no such thing as a free lunch — especially in the dealership world.
While an extension can buy you some much-needed time in the short-term, it might come back to bite you in the long run. Here's the Pros and Cons...
While an extension can buy you some much-needed time in the short-term, it might come back to bite you in the long run. Here's the Pros and Cons...
Pros:
Buys you time—no rush to find your next car.
Avoid a down payment—you’re sticking with the same car.
No dealership headaches—skip the sales pitches (for now).
Convenience—if you like your car, why switch?
Avoid a down payment—you’re sticking with the same car.
No dealership headaches—skip the sales pitches (for now).
Convenience—if you like your car, why switch?
Cons:
Potential extra fees—your monthly cost could go up.
Mileage trouble—going over the limit? Get ready for fees.
Out-of-warranty repairs—if your warranty expires, repairs are on you.
Depreciation hits—your car keeps aging, but your payment doesn’t drop.
Delaying the inevitable—you’ll still have to make a decision later.
Mileage trouble—going over the limit? Get ready for fees.
Out-of-warranty repairs—if your warranty expires, repairs are on you.
Depreciation hits—your car keeps aging, but your payment doesn’t drop.
Delaying the inevitable—you’ll still have to make a decision later.
How Do I Extend a Car Lease?
Top- Contact your lessor. Reach out to your leasing company before your lease expires to get all of the detailed specifics on their extension process. (You should be able to find their contact information on your lease agreement or their website.) They will provide you with details on the extension process, including any paperwork that needs to be completed.
- Review the terms. Be sure to carefully review the terms of the lease extension, including the new lease duration, monthly payments, and any additional fees or charges that may apply.
- Sign the agreement. If you decide to proceed with the lease extension, sign the lease extension agreement. Make sure you understand all terms and conditions before signing. Then, submit any required documentation, such as a signed lease extension agreement, to your lessor to finalize the extension.
- Continue your lease. Once your extension is approved and processed, continue to make your monthly lease payments as outlined in the agreement until the new lease end date. At that point, you'll have to make a decision again.
Other End-of-Lease Options
TopTurn in your vehicle and apply it toward another lease or purchase.
If you’re really itching to get back into a new lease, you can leverage your current lease turn-in to get a good deal on your next one instead of extending.
Dealerships often offer incentives to customers who turn their car back in and immediately enter another lease, potentially with upgraded features.
Better yet, consider buying a used car from your dealer or another seller. Buying a used car can be more cost-effective than extending your lease, especially if you find a reliable vehicle with low mileage.
Dealerships often offer incentives to customers who turn their car back in and immediately enter another lease, potentially with upgraded features.
Better yet, consider buying a used car from your dealer or another seller. Buying a used car can be more cost-effective than extending your lease, especially if you find a reliable vehicle with low mileage.
Buy out your lease and keep your car.
If you’re considering an extension because you like the vehicle you have now, buying out and keeping your leased car can be a great option.
Why?
Why?
- Familiarity and comfort: You've grown accustomed to your car and love driving it.
- No surprises: You know your car's history and maintenance record, reducing the risk of unexpected issues.
- Cash in on value: Depending on your car’s residual value, you could get a great deal on the car compared to its market value.
- Ownership and equity: Plus, buying your leased car means you own it outright, giving you the freedom to keep it as long as you like...and if you change your mind down the road, you can sell the car and potentially recoup some of your investment.
To learn more about this option, read about how a lease buyout works. (or if you're a visual learner, watch our video: How Does a Car Lease Buyout Work?)
Buy out your lease and sell your car.
If you’re not interested in keeping the car, but you do have equity in the vehicle, you can buy out your car to turn around and sell it.
If your buyout amount is lower than the car’s current value, you'll make money off of your car lease.
If your buyout amount is lower than the car’s current value, you'll make money off of your car lease.
How Lease End Can Help
TopYou’ve got options.
Deciding which one is best is the hard part.
Luckily, you’ve got Lease End to help you out. We want to help you think through your lease-end options and find the one that’s right for you. If you decide to buy out your car, we can take care of the stressful parts so ending your lease is as easy as extending it.
Deciding which one is best is the hard part.
Luckily, you’ve got Lease End to help you out. We want to help you think through your lease-end options and find the one that’s right for you. If you decide to buy out your car, we can take care of the stressful parts so ending your lease is as easy as extending it.
We’ll arrange a car loan that fits your monthly budget through our trusted partners like Ally Bank,TD Bank and Capital One.
We can even hook you up with customizable, extended coverage so you’re not left hanging after your lease ends.
If you're ready to chat through your options with a dedicated advisor, give us a call at 888-307-5197 to get in touch with one of our lease-end experts.
If you'd prefer to start the buyout process online, enter your license plate or VIN number below.
About the author
Sarah Williams
Sarah loves breaking down complex topics and making them accessible to everyday readers. With four years of experience writing in the fintech and auto industries, she’s helped shape Lease End’s voice and given consumers the confidence they need to tackle leasing topics.
Lease End's mission is to empower auto lease owners with the technology to easily exit their lease. If you'd like to learn more about the lease-end options available to you, please don't hesitate to contact us. Our expert advisors are always prepared to answer your questions and are committed to finding the right plan for your individual needs.
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