@ANDY Many people are going for lease extensions due to the poor choice and excessive AP’s. A few things to keep in mind though;
1) Even though the car will be 4 / 5 years old, you will still pay the same in benefits as you would with a brand new car. The outlay over a 5 year lease is well over £16k. With respect, what a used car is worth now is irrelevant to any decision about whether to renew or extend. The only beneficiary of high residual values is Motability Operations, not the customer!
2) Good Condition Bonus / Payment is paid regardless of whether people stay in the scheme or leave, so it’s a bit of a false calculation to say that the AP is net of the GCB. Obviously it helps cash flow, but it doesn’t discount the AP at all. Only the new car payment is conditional upon staying in the scheme, so that one can be fairly deducted from the AP when working out true cost.
3) With a lease extension, you aren’t committed to see the whole extension through. You can extend the lease by two years but then decide at any time to order a new car, even the week after you extend! Due to this flexibility, it’s always wise to extend to 5 years, not 4.