What Happens at the End of a Car Lease
Table of Contents
Key Takeaways
- When a lease ends, you are typically able to return the lease or buy it out
- You might want to consider starting a new lease with a new vehicle
- Ask to extend your lease if you need more time to decide
What Are Your Options at the End of a Lease?
Whether you are approaching the end of your lease or are looking for all the information before leasing for the first time, there is no doubt you’ll have questions about what happens when a lease is over. Leasing is a convenient and affordable way to drive a new vehicle, yet for many drivers, knowing what to do when their lease is up can feel like a tough call.
At Ontario Chrysler, we are the Ram, Chrysler, Dodge, and Jeep dealership Toronto residents turn to when looking for the best selection of the most in-demand vehicles. In this post, we help you understand what happens after a lease is up on a car to help you make a more informed decision regarding leasing.
When a lease ends, drivers generally must choose between returning the lease and buying out the vehicle. Both options can be a good choice and knowing which is right for you will generally come down to personal preferences. If you are looking to change vehicles, returning your lease will likely be your best option. However, buying out a vehicle after a lease can be a smart choice for those who like the vehicle they are driving and want to take advantage of a buyout amount that is favourable.
Leasing can be a great way to save money on your car payments while driving a car you love. Contact a member of our team for more information on leasing a new Jeep Wrangler or new Ram 1500 for sale within our inventory.
Quotes From the Experts
Constantine StamatiouLeasing Manager
Pros and Cons of Returning a Lease
| Pros | Cons |
|---|---|
| You’ll get an opportunity to purchase or lease a newer vehicle with updated features | Financing a new or pre-owned vehicle may be more costly than your lease |
| You can upgrade to a vehicle that better suits your current lifestyle | If your buyout amount is below market value, you might miss out on a good deal |
| You can feel good about getting into a new vehicle with a full warranty | You could be leaving money on the table if the cost of buying out your lease is lower than the current market value of the car |
| You are giving back a vehicle that may no longer be under warranty | You’ll get to keep a vehicle that you know you love driving |
| If your buyout amount is not less than market value, you would be overpaying to keep it | You will likely not be underwater on your remaining car loan |
| You can upgrade to a new vehicle with ease |
Frequently Asked Questions
What Happens at the End of a Lease If I’m Over My Kilometre Limit?
If you are over your mileage limits at the end of your lease, don’t worry too much. You will simply need to cover the cost of the amount you went over when returning the lease. If you choose to buy out your vehicle, this is less of a concern. If you know you will use more mileage than initially agreed to, it may be worth purchasing additional kilometres at the beginning of your next lease.
What Will It Cost to Buy Out My Lease?
When it comes to leasing, the cost of buying the lease out at the end of the term will be clear and set out at the beginning of the lease. This amount is based on the residual value of the car. In some cases, your buyout amount will be less than market value while in other cases, it could be more. You can look at your lease contract to see the cost of buying out your lease.
Conclusion
When your lease is up, you have the choice to return the lease or buy it out. Knowing which option is right for you is a personal decision. If you have been looking to change vehicles, returning your lease is a smart choice. However, buying out your lease can be a rewarding option if you are happy with your vehicle.
Hadeel Hijazieh – VP Digital Marketing at Ontario Chrysler Group
Hadeel has over 15 years experience in Automotive Digital Marketing with a focus on Brand dominance. She is a member of the dealer council at various leading marketplaces in Canada. Outside of work, Hadeel can be found splashing acrylic paint over canvas in her home studio.
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