Is your lease contract about to expire? This is what you need to know about the final term!
11 januari 2023
If your current lease contract is about to expire, you may be faced with a final term. That depends on what you have agreed upon. If your current lease contract is about to expire, you may be faced with a final term. That depends on what you agreed upon when concluding your lease contract. But what exactly does the final term mean, how does the final term work and what should you pay attention to when it comes to the final term of your financial lease agreement? You can read all about it in this blog.
What is the final term?
The final installment is an amount that is still outstanding at the end of your financial lease contract and that you have not repaid during the lease term. You must therefore repay this amount at the end of the lease term. You can find the amount of your final term in your lease contract. Have you repaid the last monthly installment and the full final installment at the end of your contract? Then you can become the owner of the car, but you can also choose a new car. How it works? You can read that below.
How does the final term of a financial lease contract work?
You can deal with the final term of your financial lease agreement in different ways. Which option suits you best depends on your personal situation and wishes. Below we explain the different options.
Use trade-in value as final term
Did you know that you can also use the trade-in value of your current lease car to pay your final installment? It goes like this:
- We calculate the trade-in value of your current lease car;
- You use the trade-in value to pay your final installment;
- Is the trade-in value of the lease car higher than your final term? Then you do not have to pay the final installment with your own money and you can use the remaining amount as a down payment on your new lease car or company car . So affordable!
Curious about the trade-in value and final term of your current lease car?
Contact leasing expert Edwin to discuss this and the options for trade-in. He is happy to provide you with expert advice that suits your business wishes and situation.
Extend your lease contract while keeping your current car
Do you want to keep your current lease car? Then you can choose to use the l
Do you want to keep your current lease car? Then you can choose to extend the lease in one of the following two ways:
- Extension with new (financial) conditions: In this case, you extend your existing lease contract, but opt for different conditions. This could, for example, be a different lease rate or a different term.
- Extension with current (financial) conditions: Do you choose this option? Then you extend your current lease agreement and the conditions, such as the lease rate and term, remain the same as the current conditions.
Would you like to extend your lease agreement? Please contact Edwin to discuss the possibilities.
Buy the lease car
Would you like to keep your current lease car? Then you can also choose to buy the car when your lease contract expires. You then pay the full residual value of the car to the leasing company and then officially become the owner of the car.
An important disadvantage of this option is that it requires a large one-off investment from you, which means you have less liquid assets in your company. This may mean that other important business investments have to wait. In addition, this (company) car probably needs more maintenance than a new(er) lease car. For most entrepreneurs, trading in their current car and choosing a new financial lease model is the cheapest option.
Is your lease contract about to expire, or are you going to enter into a new lease contract and do you need expert advice about the final term?
Please contact our advisors. With their passion for and knowledge about cars and lease contracts, they are happy to provide you with sound advice.
About 123Lease
As an entrepreneur, do you want to lease a car? Then 123Lease will help you get started worry-free with the car and leasing solution that suits your business wishes and needs. Our team of expert advisors with passion for and knowledge about cars will help you make the right choice that suits your wishes, needs and company.
