Extra Lease Miles: Here’s What You Need to Know About Your Options
So, you’ve decided to lease your next vehicle.
You probably have a lot of questions. Not the least of which concerns mileage.
Will you go over? Will you need more?
Is it worth it to purchase more miles up-front? Is there a downside?
Don’t worry. Here are the answers you need before you hit the dealership.
What’s the standard?
A standard lease usually includes a 12,000 mile-limit per year.
If you know you won’t go over that, no problem. You can stop reading and move on to the more fun decisions, like which Acura you want to go with.
BUT, if you have a feeling or you’re sure you’ll go over that 12,000-mile limit, there are a few things you need to know.
Extra-mileage car lease
If you’re a newbie, here’s how the whole leasing thing works: The cost of a lease is based on the vehicle’s initial value and its value at the end of the lease (resale value).
Here’s an example: You know you’re going to drive more than 12,000 miles a year and figure you’ll probably hit closer to 20,000.
The vehicle will still hold a fairly good value at the end of a typical three-year lease.
In this situation, it makes sense to pay for the extra mileage allowance upfront.
Now consider this scenario: You’re looking at driving your new vehicle about 70,000 miles per year. At the end of the three-year lease, the car will have over 200,000 miles. And not much value.
You’ll end up paying as much as if you had bought the vehicle. Possibly even more.
Pros and cons
Let’s explore the pros and cons of buying extra mileage upfront.
- The cost per mile is usually less than paying for overages at the end of the lease.
- You have options: You can pay for the extra miles as part of your monthly payment, OR you can make the extra miles part of your down payment.
- Often, you can get a refund at the end of the lease for miles you didn’t use.
- Leasing companies generally won’t change their policies on wear-and-tear even though you’re purchasing extra miles. With extra mileage, you’re sure to have more opportunities for scratches, dents, dings, and other depreciating factors.
Get expert advice
If you’re stuck about how to answer the mileage question for your new lease, talk to someone with the knowledge to help you make the best choice.
The People Pleasers at Serra Acura are happy to help. Stop and see us today!