The fundamental myth is that end of lease (month-to-month and longer) extensions are in any way unusual. In fact most lessees struggle to return leased equipment and end up paying some version of extension rents on the majority of their equipment leases. Lessors know, at lease inception, that some extensions are likely. Lessees – if they have evaluated the all-in cost of leasing would also know this and could include an estimate of extensions in their lease versus buy analysis. However each lease extension is commonly viewed as a one-off unique event – which is a costly mistake.
