Assume that you owe a $1,000 excessive wear charge at lease-end. Rather than returning the vehicle to the lessor and paying this charge, you may be able to extend the lease and continue to make monthly payments. The lessor will reduce the lease payoff amount by the depreciation portion of each monthly payment. Usually, this depreciation portion is much greater than the actual vehicle depreciation during a lease extension unless you cause additional excessive wear to the vehicle. For example, assume that you have a $10,000 residual value purchase option. However, the vehicle is worth $9,000 at lease-end because of excessive wear. Thus, there is a $1,000 deficiency. If you were to extend the lease for 6 months, the lease payoff might be reduced to $8,800 and the vehicle might now be worth $8,500. Thus, the $1,000 deficiency would be reduced to $300.