What Happens When Your Car Lease is Up?

Your car lease is almost up. It's time to weigh your options.

* Leasing another car is one--but maybe not your best--option. If you have a good credit history with your lease company, you'll likely get a letter (about two weeks before your lease is up) that preapproves you for a new lease. Before you agree to financing through the dealership, at the very least, ask for a conditional agreement subject to approval and review by your credit union. In fact, that's sound advice for any lease or dealer financing arrangement.

* You also may choose to buy your current leased vehicle outright for the amount stated in your lease agreement (residual value) plus any additional charges and fees. Again, first check with LifeWay Credit Union about ways to finance any purchase.

* Another option is to turn in your leased car and walk away. Maybe you found that leasing just isn't for you. Before your lease ends, learn all you can about the end-of-lease process. Talk to a return lease specialist where you plan to return the car. When you return the car, be prepared to sign several end-of-lease papers to terminate your responsibility, and make sure you receive a copy of the federal odometer receipt and a report of the vehicle's condition.

If you're not sure which option to choose, call us at 615-251-2089. We can review your lease agreement and help you weigh your options.