When you hire a vehicle, you do not always know how long you will need it for. Sometimes you reach the end of the original period of car or van leasing in Bristol and find yourself looking for an extension. Whether this is possible usually depends both on the terms of your original agreement and the provider’s general policies.

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What is a lease extension?

A lease extension is when you make an informal or formal agreement with your provider to continue using a vehicle after the original termination date of your contract. This applies to van leasing Bristol as well as car leasing in Birmingham.

An informal extension does not have a set end date, but instead is a short-term, stopgap measure that continues until a request is made for the vehicle to be returned. Formal extensions involve an official contract with distinct terms, usually lasting for six or 12 months.

Can anyone extend a lease?

It depends on the provider. Extensions will not normally be granted before the final 90 days of the contract, if the customer owes fees, or if the vehicle is awaiting maintenance. It will usually need to be either a Personal Contract Hire or a Business Contract Hire. You should remain generally aware of your rights when renting a vehicle.

What are the advantages and disadvantages of extension?

You may need to pay additional administrative fees, but you do avoid the larger upfront expenditure required for a brand-new lease. You also do not need to undergo the same comprehensive credit checks as when first applying for a hire vehicle.

However, the longer you have the vehicle, the more chance there is of wear and tear, which can lead to increased maintenance costs. You may also see the expiry of the warranty, MOT or breakdown cover.

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If you are considering a vehicle extension, ensure you carefully read your existing contract and your provider’s policies, that you are fully up to date on current billing and that you are aware of potential future costs. Then decide if you need a formal or informal extension.