Anyone ever extend a lease?

[scarlet knight]

I am leasing an Audi A4. I like it very much. I have a three year lease that expires in June, 2021.

As a result of the pandemic, I am way under in allowed mileage. I am slightly over 19,000 miles with 30,000 allowed.

Since the car seems new to me, I have thought about extending the lease another year. I have a 4 year/50K warranty, so that would be in effect.

I assume the monthly lease price would be lower than what I pay now. I could be wrong.

I could also buy it, lease a new car or buy a new car. Just thinking it over.

[swils8610]

Very common. The payment would remain the same. Call Audi financial for the correct info.


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[swils8610]

Originally Posted by swils8610

Very common. The payment would remain the same. Call Audi financial for the correct info. Usually the max you can extend it is for 6 months. I run a Audi/VW store. PM if you have questions.


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[scarlet knight]

Thanks! I was thinking a year, but if can’t be done, ok.

[PackPride]

To round out the picture- check out kelly blue book value for your used car. See what the value would be vs the purchase price. The math will tell you the better financial play.

[Tommyk]

Typically German brands will do it for up to 3 months. Some brands are even more picky where you have to show commitment to leasing another vehicle. With 2020 being such a great year they might be more forgiving than usual. Just call Audi/VW credit and see what they can do. The payment will not be lower. In many ways by extending a lease you are putting the bank in a situation where the mathematics of the financials are not in their favor with a lot of downside. Again they will do it, but only to show good customer service.

[Mifune]

I'm doing it right now with my vw alltrack... Up to six months is available and I am going to use all of that because I am going to purchase the car outright.

[brandrea]

I don’t see any downside to extending the lease if they’ll allow it. If you like the car and warranty isn’t an issue, I’d go that route too

[rodo]

Originally Posted by Mifune

I'm doing it right now with my vw alltrack... Up to six months is available and I am going to use all of that because I am going to purchase the car outright.

Question: what’s the benefit of extending if you’re going to end up buying it out?

[Mifune]

Convenience... All payments are going towards payoff anyway, just like ALL my initial lease payments.

Means a lower financed amount when I do make the deal

[GB-man]

Just my thoughts but if you prefer to lease I would take the opportunity to get a new one. Similar money and new car.

[Jim Beam]

Originally Posted by Mifune

Convenience... All payments are going towards payoff anyway, just like ALL my initial lease payments.

Means a lower financed amount when I do make the deal

Are you sure about that? Most lease payments represent the value lost in depreciation plus a premium for the dealer and manufacturer.

So, yes, you can *technically* say it's going to your payoff but that's only because you are buying a car that is now worth a lot less at the end of the lease . . . and you've also been the one paying the depreciation during the lease. You haven't been socking money away or anything, the car is now just worth a lot less than when you started.

[Watchflair]

Most manufacturers have limits to how long they will extend the lease - payments remain the same. In some cases depending on your state you could owe additional sales tax. Audi Financial would be the best to talk to regarding the above.

Another important thing to consider:
At 19k miles you are probably going to need brakes and tires soon (if you haven't done them already) - factor this into the equation when making your decision.

[swils8610]

It’s very common. People often do it if the payment on a new car is going up. You can go month to month for up to 6 months max.

I’m running an Audi/VW dealership. PM me if you like.


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[rmagoo57]

I would extend it until it needs new tires or requires a major maintenance expense!

[Watchflair]

Originally Posted by rmagoo57

I would extend it until it needs new tires or requires a major maintenance expense!

Just have to be careful with that and the wear and tear limits set by the manufacturer.

[sokoloka]

You paid for those miles already, sounds like it's time for a road trip.

[Mifune]

Originally Posted by Jim Beam

Are you sure about that? Most lease payments represent the value lost in depreciation plus a premium for the dealer and manufacturer.

So, yes, you can *technically* say it's going to your payoff but that's only because you are buying a car that is now worth a lot less at the end of the lease . . . and you've also been the one paying the depreciation during the lease. You haven't been socking money away or anything, the car is now just worth a lot less than when you started.

100% sure... Zero doubt. Are you sure now about what I said...

[Jim Beam]

Originally Posted by Mifune

100% sure... Zero doubt. Are you sure now about what I said...

I don’t think you understand how a lease works. Best way to find out is this - find your same car in used condition and figure out how much it would cost you to buy it now at used price. My guess is that you’ll find those payments to be *less* than whatever fantasy the dealer hooked you and reeled you in on.

[GB-man]

Depends if his lease rate is lower than his finance rate. If he’s paying cash for the vehicle at end of term then he’s buying an option to opt out with the premium being represented by the interest fee on the remaining payments.

[Tricolore66]

Leasing a car, and then financing the residual amount to purchase it at the end is the nuclear holocaust of bad automobile decisions you can make. Run the numbers and figure out how much you've paid for that car, and you'll have a stroke.

Just one of the laundry list of reasons this is a bad idea is that in many states you pay sales tax on the full amount of the car in the lease. If you buy the car at the end of the lease term, you're going to pay sales tax again. Brilliant! You've been paying interest on the residual for the entire lease term, and now you get to pay interest again when you finance it!

You lease payments are just covering your depreciation. Your residual value is still sitting there waiting for you, and you're paying interest on that without paying it down a penny during your lease term.

Here are a few tips for leasing:

1. If you don't understand how it works, it's probably not a good idea. Your dealer is banking on you not really understanding how it works.

2. Putting money down on a lease does basically nothing but pay down your monthly payment and also save you a very small amount of interest.

3. Leasing doesn't give you flexibility, it limits your flexibility.

Originally Posted by Mifune

Convenience... All payments are going towards payoff anyway, just like ALL my initial lease payments.

Means a lower financed amount when I do make the deal

[swils8610]

Originally Posted by Tricolore66

Leasing a car, and then financing the residual amount to purchase it at the end is the nuclear holocaust of bad automobile decisions you can make. Run the numbers and figure out how much you've paid for that car, and you'll have a stroke.

Just one of the laundry list of reasons this is a bad idea is that in many states you pay sales tax on the full amount of the car in the lease. If you buy the car at the end of the lease term, you're going to pay sales tax again. Brilliant! You've been paying interest on the residual for the entire lease term, and now you get to pay interest again when you finance it!

You lease payments are just covering your depreciation. Your residual value is still sitting there waiting for you, and you're paying interest on that without paying it down a penny during your lease term.

Here are a few tips for leasing:

1. If you don't understand how it works, it's probably not a good idea. Your dealer is banking on you not really understanding how it works.

2. Putting money down on a lease does basically nothing but pay down your monthly payment and also save you a very small amount of interest.

3. Leasing doesn't give you flexibility, it limits your flexibility.

So...your’e the guy I love. Turns in his lease before checking the residual value vs current market value. I take in many leases that the residual value is much less than current market value.

Leasing gives a lot of flexibility...people’s lifestyle change, wants and needs etc.

If the residual value is less than market value, the consumer simply walks away.

Leasing is great for some people and not great for others.

Cheers


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[Dyim]

Yup.

A friend of mine just bought his LC500 after lease is up just for this reason.

[GB-man]

A lease contract is nothing more than a option to divest at a set date with set terms.

It can be valuable for those with tax benefits or with time constraints who intend to purchase a new car routinely.

It can also be a home run if you manage to get into an accident during the time under lease.

[droptopman]

I played with this--this week in fact. Ended up buying my C 43 lease Tuesday. First leased car I have purchased. Thought about extending the lease but the numbers looked great. My guaranteed buy price was significantly lower than wholesale price and way lower than retail price. So immediate equity which is unusual with a MB AMG. I love the car and will keep it for another year or two then trade in on a GLE 63S. For the last decade I have leased cars for myself and my wife. We bought her a new MB in the summer and are moving off the lease train.