Car lease agreement after the deferral payment plan

[Deleted User]

Based on the numbers you have given you will not actually be worse off as you initially thought.

Current contract:
25 payments of £589 = £14,728
With payments every month between now and June 2022
Capital outstanding at end of contract: £21,359
Interest paid: £3,606

New Contract
21 payments of £674 = £14,156
With no payments for June, July or August 2020, resuming September 2020 through to May 2022
Capital outstanding at end of contract: £21,992
Interest paid: £3,753

It will only cost you £146 extra in total, the additional interest charged due to the marginally higher rate, your monthly payments do rise by 14%. Once you factor in that slightly more will be left outstanding the total cost is roughly £634. The majority of that rise is caused by having three months where you are accruing interest (a cost of £522) but making no payments and then having shortened the term by one month. Once you factor in that slightly more will be left outstanding the total cost is roughly £634.

It is actually a perfectly reasonable offer from them.