You get a new car, pay a fixed monthly fee and can forget about insurance, maintenance and taxes. But what happens when the the leasing contract ends?
Long-term leasing is becoming an increasingly popular option because it is convenient and practical. What not everyone knows is what happens at the end of the contract, what options drivers have and what is the best decision to make. We tell you everything you need to know below.
What is long-term leasing?
Long-term leasing is a lease contract with a commitment period—normally between 24 and 60 months—which allows you to drive a new vehicle in exchange for a fixed monthly fee. This fee usually includes comprehensive insurance, maintenance, roadside assistance, taxes and servicing.
It's kind of like a rental, so the car is not yours and belongs to the leasing company. In return, you don't assume the risk of depreciation or have to worry about maintenance. You can just enjoy your time at the wheel.
However, you will be required to comply with the contract at all times, which establishes the duration and maximum annual mileage. If you go over this figure, you will likely have to pay a surcharge. And when the leasing contract ends, you have to decide what to do with the car.
What happens when the leasing contract ends?
As the end date for the contract approaches, you will be informed of all the available options. The process is simple:
- They check the condition of the vehicle.
- They check that the mileage during the contract period corresponds to the contracted mileage.
- The return of the vehicle is scheduled on an agreed date.
If the car is returned in good condition and within the mileage limits, there will be nothing to worry about. If there is more damage than expected or excess mileage, additional charges may apply as stipulated in the contract. That being said, there are other options beyond returning it.
Options available at the end of your lease
At the end of the leasing contract, there are several interesting options depending on your needs:
- Return the vehicle: If your circumstances have changed or you no longer want to continue with the contract, you can return it without any problem.
- Renewing with a new car: Many drivers take advantage of the end of the leasing contract to get a new car. In other words, they change their current one for a new model, with better technology and better features. This is one of the most common options.
- Buying the vehicle: In many cases, you have the possibility of buying the car at the end of the contract, at a price fixed by an appraisal process. If you liked the car and want to keep it, you can buy it cheaper than new. Besides, it will have experienced so many things with you that you will feel like it is yours.
Recommendations to make the best decision
If you choose to return the vehicle, don’t wait until the last minute. Check the mileage and general condition of the vehicle to avoid problems, and confirm the specific conditions of the contract. Some allow purchases after the contract period and some do not.
Also take the opportunity to run the numbers and think about your present and future needs. For example:
Your current situation
Have you changed jobs? Are you moving house? Do you need more space or less consumption? Would you like to try an electric car? You can take advantage of this opportunity to renew the contract and make your new vehicle better adapted to your current needs.
Think in the medium term
Don't just think about the present, look at the medium and long term as well. If your priority is stability, comfort and you want to drive a car with the latest technology, by leasing there will always be a fixed monthly payment. On the other hand, if you prefer to purchase it to own it (with all that entails) and are looking for a car that will last you for many years, it may not be the right choice for you.
Costs and peace of mind
One of the great advantages of leasing is that there are no surprises, neither in maintenance, nor in repairs, nor in policies. You pay a fixed monthly fee and can forget about the rest, always with the peace of mind of being able to make the best decision at the end of the leasing contract.
You choose whether to end the agreement, renew and enjoy a new car or become the owner of a vehicle you know well. At OK Mobility, we offer a fleet of vehicles for all tastes and needs, with everything included in the monthly fee and no deposit required. What are you waiting for? Come and choose yours today!
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