Lease extensions provide an opportunity to continue using a vehicle beyond the originally agreed-upon lease term. This arrangement involves modifying the existing contract to allow for additional months of usage, typically at a revised monthly payment. For example, an individual nearing the end of a 36-month auto lease might negotiate an extension to cover an interim period before securing a new vehicle.
The option offers several advantages. It prevents potential late fees associated with returning the vehicle, avoids the immediate need for replacement transportation, and maintains consistent vehicle access during transitional periods. Historically, lease extensions were less common, but increasing market volatility and supply chain disruptions have made them a more frequent and beneficial tool for both lessees and leasing companies.
