A method for extending and retracting a handle of a door handle assembly for a door of a vehicle includes providing a door handle assembly having a base portion, a handle portion that is movably attached at the base portion, and an electrically operable actuator that operates to move the handle portion relative to the base portion. A control controls operation of the actuator to move the handle portion between a recessed position and a partially extended position. Responsive to detecting presence of an authorized user, a sensing system determines a motion vector of the user that is indicative of a direction that the user is moving relative to the vehicle. Responsive to determining that the determined motion vector is indicative of the user approaching the door of the vehicle, the control controls operation of the actuator to move the handle portion to the partially extended position.