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Car Leasing Question

Discussion in 'General Automotive Discussion' started by jeff, Jul 7, 2011.

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  1. jeff

    jeff Formula 3

    Feb 19, 2001
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    #1 jeff, Jul 7, 2011
    I drive 25K miles a year. The 3 year lease has the standard 12K miles per year. Is it better to prepay the additional 13K miles a year at 10 cents per or take the hit at the end of the lease at 15 cents per mile. The leasing agent said don't prepay for the miles. His thinking is at the end of the lease the dealer may forgive some of the miles as an incentive for me to lease another car. I don't know which scenario is better?
     
  2. Devilsolsi

    Devilsolsi F1 Veteran
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    Alex
    #2 Devilsolsi, Jul 7, 2011
    If you are driving that much why would you lease instead of buy? I know leasing is usually cheaper if you stick to the 12-15K, but I would think it would be about the same to buy with the additional miles. If you do buy, there is less worry about what happens if you go over the mileage amount.
     
  3. Bullfighter

    Bullfighter Two Time F1 World Champ
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    #3 Bullfighter, Jul 7, 2011
    Last edited: Jul 7, 2011
    That was my first reaction, but at the numbers quoted it's only another $100+ per month, which may not be so bad. And if he can write it off as a business expense that helps as well.

    Still, he's better off buying a lightly used car and driving it into the ground.
     
  4. jeff

    jeff Formula 3

    Feb 19, 2001
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    #4 jeff, Jul 7, 2011
    Thanks for the inputs. In the past I have paid cash and tried to "run them into the ground.". My current car, a Lexus IS 300, has 225k miles on it. Paid $30K for it new and now the value is close to zero. Looks like leasing may not be the right thing to do. I was hoping it would make sense to lease. I could drive a new car every 3 years. I can't write it off as a business expense.
     
  5. Bullfighter

    Bullfighter Two Time F1 World Champ
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    #5 Bullfighter, Jul 7, 2011
    Most cost effective is to pick up a 'nearly new' car thats traded in, maybe a year old, for a nice discount off new.

    If you're going put 200K miles on it, it doesn't matter that you're starting from 10K rather than zero.
     
  6. Bad Chariot

    Bad Chariot Formula Junior

    Dec 6, 2003
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    #6 Bad Chariot, Jul 13, 2011
    Depending on the car, increasing the mileage is not that bad. 3 years ago we got my wife a new SUV and going from 12k to 15k a year was $20mth more which I would have preferred to pay every month rather then dealing with the paymt at the end. Plus I had been told that dealers much more scrutinize a car over it's mile allotment then one that is under/at.

    We traded in that truck last week, had $2k equity so we got her a 2011 Chevy Equinox on a 39mth 15k yr allowance, she didnt want bells and whistles so we got the LS model AWD for $321mth. So she dropped her paymt and is getting much better MPG (21/29). We have 2 small girls so it works for us.
     

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