More Information about Extending the Lease if Allowed by the Lessor

Your lessor may give you the right to extend your lease past full term. Your monthly payment may be the same during the extension. Extending a lease term is particularly useful when you have not decided on a replacement vehicle or you are waiting for delivery of a vehicle you have ordered. In addition, some lessors may offer lower monthly payments over the extended term to reflect the lower value of the vehicle and the reduced lease balance at the end of the initial lease term. If the extension is for more than 6 months or if you sign a new lease, you should receive a new set of Consumer Leasing Act disclosures. Example

A lease extension may also be helpful if you owe a substantial amount for excess mileage and excessive wear and tear. By extending the lease, the additional paid-in monthly depreciation typically reduces the lease payoff amount or the purchase-option price.