Extending a Lease

[Keithmt]

Is it me?

So, the 2 year lease on my M3P comes to an end in May and my leasing company contacted me to see if I wanted a quote to extend the lease; I said yes please.
Now, in my simple mind I assumed that when they calculated my initial deposit and monthly payments over 2 years that all my payments plus my 12 month deposit plus the residual value in the car (as calculated 2 years ago) would allow them to move the car on and make whatever profit they make.
So, if I now extended the lease I somehow thought that my monthly payments would reduce but I was shocked to get a quote back that if I extended the lease for 12 months that my monthly payments woud INCREASE by 25%. Whaaaat? Does this make sense?
Not to mention that due to Covid, the car will go back with much less than my contracted mileage, plus of course the residual value in the car is now significantly more do to current demand for second hand cars.
Confused ….. any thoughts?

 

[DM206433]

Lease company can charge whatever they want essentially, in my experience they'll often pull stuff like this hoping you'll just accept it. My advice would be to hand it back and get something else / new model if you can find a good deal that suits you.

 

[muster39]

This doesn’t make sense to me. My lease company quoted (slightly) lower lease figures for extending by 6 or 12 months. If you are keen to keep your vehicle for longer you can try and negotiate a lower figure and/or ask how they have come up with the increase in the lease cost for the 12 month extension.

 

[73henny]

You might find that the high price is due to them being happy to have the car back and take advantage of the high used prices. Perhaps they are guarding against a drop in used prices in the next 12 months.

 

[Stranger Dings]

You might find that the high price is due to them being happy to have the car back and take advantage of the high used prices. Perhaps they are guarding against a drop in used prices in the next 12 months.

I think you might be right. If the lease company sell it now, they’ll be quids in. That is reflected in the new quote.

 

[73henny]

I think you might be right. If the lease company sell it now, they’ll be quids in. That is reflected in the new quote.

I've a couple of colleagues who tried to buy their company cars at the end of the lease like they'd done in the past. Lease company wouldn't sell them - wanted them back to retail apparently.
If you look on Cazoo's website they have new SR Tesla's that are subscription only. More money in leasing them for a period then selling them on at inflated used prices.

 

[Bootneckshuffl]

Zen Auto just quoted me a 50% increase on my monthly payment to extend my contract by 12 months. This is after 3 years.

 

[Js1977]

Zen Auto just quoted me a 50% increase on my monthly payment to extend my contract by 12 months. This is after 3 years.

The Op asked a question and for reasons unknown never debated what he questioned and also for reasons unknown has not been active here for over a year (hopefully he/she is ok) .... this is an old thread.