High Mileage Car Lease

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Leesbro63
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High Mileage Car Lease

Post by Leesbro63 » Mon Apr 16, 2018 1:13 pm

I'm wondering if there are such things as 20,000 per year car leases, for say a Corolla or Camry? And is a lease for that kind of mileage practical/a decent value?

I totally get it that leasing is usually more expensive than buying and not a Boglehead thing to do. But putting that aside, I guess I'm asking what the cost-per-marginal mile is for a 20,000 mile lease vs a 15,000 mile per year lease?

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Alexa9
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Re: High Mileage Car Lease

Post by Alexa9 » Mon Apr 16, 2018 1:18 pm

A 3 year old car with 60k vs. 45k is not that significant. Depends on the car. Corolla/Camry have high residual so they’re not bad to lease. On a German luxury car it would be different. There are many incentives to buy: low APR, bonus cash, easier to negotiate, no damage fees.

delamer
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Re: High Mileage Car Lease

Post by delamer » Mon Apr 16, 2018 1:27 pm

You can buy extra miles at the time of the lease. The actual cost will vary depending in what you are keasing.

I think that is cheaper per mile than having to pay for going over the mileage allowance at the end of a lease.

The trick, if course, is only paying for the extra miles that you’ll actually use.

Helo80
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Re: High Mileage Car Lease

Post by Helo80 » Mon Apr 16, 2018 1:34 pm

12k and 15k are of course the standard lease limits. But, I think you can go well beyond those with the understanding that the RV is going to be lower as a result.

Your best bet is to call around and see if your local dealers can set you up with a 20k/year lease. Keep in mind, you will need to budget for an extra set of tires as it's very unlikely you will get 60k miles out of the factory wheel.

Leesbro63
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Re: High Mileage Car Lease

Post by Leesbro63 » Mon Apr 16, 2018 1:34 pm

delamer wrote:
Mon Apr 16, 2018 1:27 pm
You can buy extra miles at the time of the lease. The actual cost will vary depending in what you are keasing.

I think that is cheaper per mile than having to pay for going over the mileage allowance at the end of a lease.

The trick, if course, is only paying for the extra miles that you’ll actually use.
So does anyone here know what the extra dollars-per-mile would be on a "common" Camry...one with "common" options (but not "loaded" nor "stripped")?

bloom2708
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Re: High Mileage Car Lease

Post by bloom2708 » Mon Apr 16, 2018 1:36 pm

With 20k+ miles driven per year, I think you are outside of the primary (or 80%) use case for a lease. They usually aren't a "deal" for the 10k driver.

Especially on a Corolla or Camry which can be purchased outright for $18k to $23k new.
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harrychan
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Re: High Mileage Car Lease

Post by harrychan » Mon Apr 16, 2018 2:06 pm

If you really need to lease and burn miles, you can simply get the cheapest lease contract then sell your car prior to your return to the dealer. The mileage would be irrelevant except the cost you will get when you sell it. The depreciation should be less than the mileage overage penalty. But honestly, you are probably better off buying a good used car.
This is not legal or certified financial advice but you know that already.

Leesbro63
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Re: High Mileage Car Lease

Post by Leesbro63 » Mon Apr 16, 2018 2:12 pm

harrychan wrote:
Mon Apr 16, 2018 2:06 pm
If you really need to lease and burn miles, you can simply get the cheapest lease contract then sell your car prior to your return to the dealer. The mileage would be irrelevant except the cost you will get when you sell it. The depreciation should be less than the mileage overage penalty. But honestly, you are probably better off buying a good used car.
I'd still like to know if anyone here knows the cost delta of a current Toyota lease 20,000 mile/yr vs 15,000.

bloom2708
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Re: High Mileage Car Lease

Post by bloom2708 » Mon Apr 16, 2018 2:20 pm

You can tinker with the Lease Hackr calculator:

https://leasehackr.com/calculator/

BUT, they only let you choose 10k, 12k or 15k miles.

I've had some brilliant leases in my calculator. Then I go to the dealer and the 24 month/$170 lease somehow comes out for 39 months at $350 and they tell me what a great "deal" I'm getting.

I would do almost anything to avoid leasing.
Where to spend your time: | 1. You completely control <--spend your time here! | 2. You partially control <--spend very little time here! | 3. You have no control <--spend no time here

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Alexa9
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Re: High Mileage Car Lease

Post by Alexa9 » Mon Apr 16, 2018 3:39 pm

Residual according to KBB:
2015 Camry LE 45k : $14,493 vs 2015 Camry LE 60K : $13,471
2015 Corolla LE 45k : $12,484 vs 2015 Corolla LE 60k : $11,811

Helo80
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Re: High Mileage Car Lease

Post by Helo80 » Mon Apr 16, 2018 4:04 pm

Leesbro63 wrote:
Mon Apr 16, 2018 2:12 pm
harrychan wrote:
Mon Apr 16, 2018 2:06 pm
If you really need to lease and burn miles, you can simply get the cheapest lease contract then sell your car prior to your return to the dealer. The mileage would be irrelevant except the cost you will get when you sell it. The depreciation should be less than the mileage overage penalty. But honestly, you are probably better off buying a good used car.
I'd still like to know if anyone here knows the cost delta of a current Toyota lease 20,000 mile/yr vs 15,000.

How about calling a dealer or two and reporting back? You have an atypical situation, but one that does preclude leasing (to my knowledge).

You're on a personal finance forum and asking a question that tends to set off 20+ kneejerk posts about how terrible leasing is.

edit: removed snarky comment.

Katietsu
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Re: High Mileage Car Lease

Post by Katietsu » Mon Apr 16, 2018 4:11 pm

Relative is on third Hyundai lease, 3 years and $60,000 miles. Great deals and very comfortable cars. And if you are turning the car in 3 years from now, whether it will last 170k miles vs 300k miles is not relevant.

bloom2708
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Re: High Mileage Car Lease

Post by bloom2708 » Mon Apr 16, 2018 4:15 pm

Could it be 20k miles or 25k miles? That is the gotcha. What if you are halfway through your lease and are over 30k miles?

Now you have the dreaded "got to watch the miles". 1,500 mile trip planned? Watching miles. Overage miles tend to be expensive. I agree. Run some numbers. Lay out some options. Maybe you'll get a deal you can't refuse.
Where to spend your time: | 1. You completely control <--spend your time here! | 2. You partially control <--spend very little time here! | 3. You have no control <--spend no time here

Leesbro63
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Re: High Mileage Car Lease

Post by Leesbro63 » Mon Apr 16, 2018 4:23 pm

Helo80 wrote:
Mon Apr 16, 2018 4:04 pm
Leesbro63 wrote:
Mon Apr 16, 2018 2:12 pm
harrychan wrote:
Mon Apr 16, 2018 2:06 pm
If you really need to lease and burn miles, you can simply get the cheapest lease contract then sell your car prior to your return to the dealer. The mileage would be irrelevant except the cost you will get when you sell it. The depreciation should be less than the mileage overage penalty. But honestly, you are probably better off buying a good used car.
I'd still like to know if anyone here knows the cost delta of a current Toyota lease 20,000 mile/yr vs 15,000.

How about calling a dealer or two and reporting back? You have an atypical situation, but one that does preclude leasing (to my knowledge).

You're on a personal finance forum and asking a question that tends to set off 20+ kneejerk posts about how terrible leasing is.

edit: removed snarky comment.
I stipulated to the fact that leasing is generally not the most cost-effective way to drive a car. I just figured that someone here might have had an experience with a Toyota lease for high miles. Not an unreasonable assumption considering how many people visit this board, most of whom have an interest in personal finance, and how many drive Toyota products.

Helo80
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Re: High Mileage Car Lease

Post by Helo80 » Mon Apr 16, 2018 4:51 pm

Leesbro63 wrote:
Mon Apr 16, 2018 4:23 pm
I stipulated to the fact that leasing is generally not the most cost-effective way to drive a car. I just figured that someone here might have had an experience with a Toyota lease for high miles. Not an unreasonable assumption considering how many people visit this board, most of whom have an interest in personal finance, and how many drive Toyota products.


No, it's not an unreasonable or crazy question --- it's just that it may take a few days for somebody to post with the knowledge as very few here lease to begin with and those that do lease their vehicles likely remain mum on the subject. The big question you want is what the RV will be on a 20k mile per year lease. Once you get that, you should be able to plug in the rest of the variables on lease hacker.

I would recommend either talking to a local Toyota dealer or poking around on Leasehacker.com in their past articles and/or asking in their forum.

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