If you’re nearing the end of your lease contract, you may want to know what your options are regarding extending your lease agreement.
To help you to understand the options available to you, Nationwide Vehicle Contracts has put together a short guide to explain the different types of contract extensions available, as well as the criteria, fees and the process involved in extending your lease agreement.
A contract extension is an agreement between you (the customer) and the finance company to extend the term of the lease contract beyond its original end date. With vehicle lease agreement, there are two types of contract extensions - Informal Extension and Formal Extension.
Like the name suggests, an Informal Extension is an informal agreement in which the customer continues to use the leased vehicle beyond the contract end date until collection is requested. Informal Extension is a short-term solution designed to help bridge the gap between lease agreements and as such, is not available with every finance provider. With an informal extension, the finance provider has the right to recall the vehicle at any time.
Similarly, a Formal Extension is a formal agreement between the finance company and the customer which allows the customer to extend the lease contract for an additional term, usually six or 12 months. A modifying agreement is sent to the customer detailing the extended term, extended term date and extended mileage agreement, along with the revised monthly rental.
A Contract Extension is subject to several criteria:
No, because this option is not available with all funders. A Contract Extension is at the discretion of the finance provider and is usually only allowed on Personal Contract Hire (subject to finance provider) and Contract Hire agreements.
A Contract Extension will also not be provided where:
All Informal Extensions are handled by the finance provider so you will need to contact them direct to see if you are eligible for an Informal Extension. You can find the contact details for your finance provider by logging into your online Customer Account.
For Formal Extensions, if your current lease contract is with ALD Automotive (for Contract Hire only), Arval UK, Hitachi Capital or Leaseplan, Nationwide Vehicle Contracts will handle the contract extension process for you. To request a Formal Extension, please follow the instructions below.
All other finance providers, including Lex Autolease, are handled by the finance provider so you will need to contact them direct to request an extension quotation.
Read through the criteria list above to ensure you meet the requirements before contacting us to ensure you are eligible for a contract extension.
Contact the Nationwide Vehicle Contracts via email to request a Contract Extension. Please include your vehicle registration number, accurate current mileage at the time of the request and the total mileage you require, including the total mileage for your current contract plus the mileage you require for the extension period.
We will contact the finance provider to see if you are eligible for a Contract Extension and will be in touch to advise accordingly.
If you are eligible, the new Modifying Agreement will be sent to us by the finance provider, along with any accompanying Terms and Conditions. We will then email these across to you. Please check the documentation carefully to ensure everything is correct.
Please follow the instructions in the email, sign the Modifying Agreement and return the documentation as requested.
Once we have received the signed documentation, we will send this to the finance provider for review. Please allow three to five working days for this to be received.
You must continue to pay the monthly rentals until the Contract Extension is completed and a new contract end date is given to you.
For a Formal Extension, Nationwide Vehicle Contracts will charge a fee of £100 excl. VAT for a six-month extension and £125 excl. VAT for a 12-month extension, subject to approval by the finance provider. The contract extension fee is payable by debit or credit card or by BACs payment and will be taken on receipt of your signed finance documentation detailing the amendment. As this fee is paid directly to Nationwide Vehicle Contracts, it cannot be taken with by direct debit.
The process involved in a Contract Extension can vary case to case as it is often dependent on the funder. We advise that from beginning to end, the process can take up to four weeks so please bear this in mind when contacting us.
Have a question about extending your lease contract? Call our leasing specialists on 0345 811 9595 to discuss the options available to you.