When to request extension to a lease?

[gmaz]

I'm currently leasing a Kona Electric from Hyundai/Arval which I managed to get before the prices went mad. The 2-year lease expires in May next year and there's no way I can get a better deal on a new lease so was thinking about extending the current contract, hopefully on the same terms.

So, when is the best time to contact Arval to extend? With as much notice for them as possible or wait until near expiry?

[Mutandegrande]

The longer I left mine the worse the deal got. But I think it's calculated based on resale value etc and how much they want the car back. So I'd suggest it's more market dependant than timing dependant.

Within my contract I have a default rate that the lease reverts to if I don't return on time, which is a daily rate on the same terms as my existing contract. That actually works out at a very similar monthly price as my existing monthly rate and substantially better than the formal extension rate they offered. So look at that also.

[gmaz]

Mutandegrande said:

The longer I left mine the worse the deal got. But I think it's calculated based on resale value etc and how much they want the car back. So I'd suggest it's more market dependant than timing dependant.

Within my contract I have a default rate that the lease reverts to if I don't return on time, which is a daily rate on the same terms as my existing contract. That actually works out at a very similar monthly price as my existing monthly rate and substantially better than the formal extension rate they offered. So look at that also.

Good point, I just checked the contract and it says

"On expiry of the Initial Term, the Rentals will continue to be payable monthly, but the Total Payments will be £ 298.25 (inc.VAT)"

compared to the £246.83 per month I'm paying now.