Assume that you owe a $1,000 charge at lease-end because of excessive wear, excess mileage, and (or) unexpected depreciation. Rather than returning the vehicle to the lessor and paying this charge, you may be able to extend the lease and continue to make monthly payments. The lessor will reduce the lease payoff amount by the depreciation portion of each monthly payment. Usually this depreciation portion is much greater than the actual vehicle depreciation during a lease extension unless you cause additional excessive wear to the vehicle or drive excess miles. For example, assume that you have a $10,000 residual value purchase option. However, the vehicle is worth $9,000 at lease-end because of excessive wear or another reason. Thus, there is a $1,000 deficiency. If you were to extend the lease for 6 months, the lease payoff might be reduced to $8,800, and the vehicle might now be worth $8,500. Thus, the $1,000 deficiency would be reduced to $300.