Can my car lease be extended | How to extend my car lease

Want to know if your lease car experience can be extended? This article explores in what circumstances this is possible

If you are approaching the end of your current lease contract, you may be wondering ‘can my lease be extended?’ You’re not alone. Many people find that there is a period between one contract ending and another starting, and they don’t want to be without a car. Or, perhaps they’re just not ready to part ways with their trusty four wheels just yet. Whatever the reasons, there are certain ways to extend the lease contract on a car. It’s worth noting that some finance houses don’t offer any kind of lease extension, so call them to make sure you are eligible. We’ll take you through all the nitty gritty.

Informal extension

can lease be extendedAn informal extension describes when a customer continues to use the leased vehicle after the contract has expired. This is usually up until it’s requested for collection. You can’t just keep hold of the car until you’re ready to part with it though. You must contact your lease provider to obtain authorisation for an informal extension. These are designed to bridge the gap between leases and you continue to pay your monthly fee in arrears. If the informal extension extends for longer than 6 months the lease company are entitled to recall the vehicle.

Formal extension

If you require an extension for longer than 6 months then you will need to request a formal extension. This involves you signing a modified agreement which extends the lease for a further term, usually 6-12 months. This will start from the end of the existing contract and an end date will be set. You’ll receive an extended mileage agreement and the same rules will apply if you exceed this. There will be a revised monthly rental fee based upon the expected depreciation of the vehicle during the term and away you go.

How do I get a contract extension?


Contact your lease provider and ask for an informal or formal extension depending on your needs. If you want to opt for a formal extension then a modifying agreement as highlighted above must be signed. A new rental fee will be calculated and an admin fee will be charged. The process of contacting your lease provider through to obtaining your lease extension is quite simple.

Step 1 – You contact your lease company to request the lease extension.

Step 2 – Your lease provider will check to see if you and your vehicle is eligible for a lease extension. Your lease provider will then notify you accordingly.

Step 3 – If you are eligible then a new modifying agreement will be sent to you from the finance house. You’ll also receive your terms and conditions including mileage allowance and contract end date. These will be emailed to you to speed up the process. Please be sure to check all documentation before signing and returning to your lease company.

Step 4 – Print off and sign the paperwork (modifying agreement) and return it to the address of your lease company provided.

Step 5 – Once received this will be sent on to the finance house for review. This process can take up to 5 working days.

Step 6 – Continue to pay the monthly rentals until the contract extension is complete and a new end date is provided to you.

Can everyone obtain a lease extension?

I’m afraid not. Not all funders offer lease extensions. It’s usually only allowed on Personal Contract Hire and Contract Hire agreements anyway. But the offering of a lease extension is at the discretion of the finance house. Even if the finance house does offer lease extensions you will not always be eligible if:

  • A request has been submitted to add or remove maintenance or a relief vehicle
  • The existing account has arrears or is subject to default or insolvency
  • The modifying agreement has not been completed in full
  • The finance house want the vehicle back for commercial reasons

How long does it take to get a lease extension?

We usually suggest allowing a period of around 4 weeks for a lease extension to processed. They will usually be completed much quicker than this but to ensure you don’t have a period of flux without transport it’s worth allowing 4 weeks to be safe.

Can Motability cars obtain lease extensions?


The same rules apply for Motability customers. Depending on the finance house you may be able to request a short lease extension to cover you through a new application. Alternatively, if you have adaptations on your car or the mileage is likely to be less than 15,000 at the end of the agreement, it may be possible to keep the car for a longer period. Alternatively, you also have the option to purchase your car at the end of the lease.

If I can’t extend my lease what are my other options?

If you are seeking to extend your lease to cover you for a period between contracts and you are unable to obtain a lease extension, then you may want to consider a short-term lease to cover you. A short term lease is specifically for people who just want to lease a vehicle for between 1-6 months. Short-term leases cost far less than their traditional daily rental and ensure you won’t be without transportation when your existing lease ends.

What are the cons to extending my lease?

Before deciding to extend your lease you should be mindful of some of the cons of doing so. For example, if you extend your lease you may be extending it past the warranty period. This means that during your extended period you could be eligible for repair costs to the car. Some repairs can be very costly, so it is worthwhile checking how long remains on your warranty before you choose to extend your lease to avoid surprise repair costs.

You also want to check any servicing or wear and tear items. Will your tyres still be legal or by keeping the car will you need to change them all? Will an additional service be required? Make sure you check this before extending your lease.

As the car increases in age and mileage, it can become unreliable. With the wear and tear of well-used vehicles comes the added risk of problems with the car. If you rely on your car for business then there could be occasions when you are left without transportation.

Just like the warranty, sometimes your roadside assistance will have expired with your lease, so you could be liable for paying for this too. If the car is reaching its fourth year you’ll also be liable for paying for the MOT and any repairs needed outside of the warranty.

Want to know what is covered by the manufacturer’s warranty?

In conclusion, lease extensions can be useful under certain circumstances but you must be cautious and ensure you are covered for repairs, or it could end up being a very costly activity.


Now you know everything about extending your lease, what happens if you want to hand your lease car back early?

Faye Lindeck

Faye enjoys Music, Dog Walking and Socialising with friends.

Faye is an experienced blogger with a keen eye for finding excellent information about the subjects she writes about. Giving OSV blog readers the most accurate knowledge.
Faye Lindeck


  • Dennis DePasquale| 24th July 2019 at 6:50 pm Reply

    I have a 2016 Honda civic and lease is up last payment is in sept, I have 16,350 miles which is almost 20,000 miles less. I have it from Honda Finance I am not ready financing or in a position to buy this car out right, Have any idea.s????

    • Rachel Richardson| 26th July 2019 at 8:50 am Reply

      Hi Dennis,

      Many thanks for your comment. If you are based in the UK we would be happy to help you find your next vehicle, simply call Amanda on 01903 223391 and she will able to help you.

  • Liz| 9th April 2019 at 9:54 am Reply

    My lease contract came to an end 2 years ago and it’s rolled on under an informal lease. However the lease company have not only charged me the same monthly payment, they’ve increased it. Why should it cost more for a car that is depreciating and getting older? Do I have an recourse with the lease company? Thanks

    • Rachel Richardson| 9th April 2019 at 10:12 am Reply

      Hi Liz,
      Thank you for your message. Unfortunately, you have no recourse with the lease company if the price of your car has gone up since you extended your contract. Depending on how you have financed it you can return the car.

  • Nancy Plechy| 7th November 2018 at 2:15 pm Reply

    If I extend my lease, will that reduce the Residual value by the number of new payments made?

    • Rachel Richardson| 7th November 2018 at 3:21 pm Reply

      Hi Nancy,
      Thank you for your question. I have looked into this and can confirm that the value of the car will not be reduced by the number of payments made, it will be reduced by the length of time the lease is extended for. I hope that this information helps.

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