Corporate lease advice for car

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oogs18
Posts: 12
Joined: Tue Mar 25, 2014 3:39 pm

Corporate lease advice for car

Post by oogs18 » Sun Feb 10, 2019 11:35 am

I was wondering if this company lease was a good deal

They offer a monthly payment of 1.3% msrp on a selection of cars. No down payment. First oil change/maintenance visit for free. They cover insurance. Lease for for 1 year but can change to a new car every 6 months.

1500 miles a month. $0.10 for every mile over the 1500 a month. I drive a lot of miles. Around 2500 a month.

Currently drive a $53000 car which would be $690 a month plus ard $100 a month extra mileage.

Wondering what you all think.

Thx!

btenny
Posts: 5144
Joined: Sun Oct 07, 2007 6:47 pm

Re: Corporate lease advice for car

Post by btenny » Sun Feb 10, 2019 12:21 pm

My math and assumptions say it is a wash with their payments being about $689 and $100 for mileage. BUT if they pay the insurance for you it saves about $150 or more per month. That is a big deal. Then if they cover the costs for rolling over the lease every 6-12 months that saves you at least $600 or more for lease turn in and origination fees. So I think you will save around $200 per month or $2400 per year. So yes I think it is a good deal. But only if my assumptions are good.

So ask you boss how the lease deal works and if it is good deal and why. Is most of your mileage done when working and commuting? Why is the company covering insurance? Do you take customers or company equipment in your car often?

Good Luck.

Luckywon
Posts: 548
Joined: Tue Mar 28, 2017 10:33 am

Re: Corporate lease advice for car

Post by Luckywon » Sun Feb 10, 2019 1:02 pm

Agree with analysis by btenny plus it sounds like you will not have to pay any maintenance since 1st maintenance is free and you can change cars before 2nd maintenance. So if you have to pay maintenance in your current lease add that savings.

Topic Author
oogs18
Posts: 12
Joined: Tue Mar 25, 2014 3:39 pm

Re: Corporate lease advice for car

Post by oogs18 » Mon Feb 11, 2019 1:35 am

Thanks for your replies. Yes, all your advice is great along with the correct assumptions. I do not have to pay any fees for the new leases and maintenance is basically free because I would change cars before the second maintenance was due. I usually buy used cars and hold onto them so didn’t know how to assess the value of the lease terms but it is reassuring that you all agree it is a good deal.

Thanks for all your help.

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