Lease vs. buy? miles driven?

Question

If you lease a car, how does number of miles driven affect your monthly payments or total cost of the lease to you?

Thanks in advance!

Answer 1

If you choose more miles per year, your monthly payment increases.  Most leases offer 12,000 miles per year with about 20 to 30 cents for each mile over that at the end of the lease.  If you want 15,000 miles per year your payment will increase about 5 percent per month.  So if the lease is $300 per month with 12,000 MPY it would be about $315 per month with 15,000 MPY.

Answer 2

Yes. If you only drive 10,000 miles a year, on average, the lease-end resale value (residual value) of the car is more than if your drove 15,000 miles per year. The more miles, the more wear, the greater the depreciation in value. Since leasing is based on how much a car will depreciate in value, based on miles, a low mileage lease will cost less per month than a high mileage lease.

If you know you are going to drive more than about 15,000 miles per year, most lease companies will allow you to "buy" those extra miles up front at a price that is lower than the price your would have to pay at lease-end. It makes your payments a little higher, but it eliminates the surprise payment at lease-end. Plus, if you buy the extra miles up front and don't use them all, you get a refund for those not used.

Answer 3

When you lease a car you usually agree on certain terms like 36 months and 1000 miles a month and if at the end of the lease you've driver over 36,000 miles they'll charge you a penalty which is usually 20 to 30 cents a mile.

Answer 4

That depends on the terms of the lease. If you agreed to an annual allowance of 10 or 12k miles (sometimes 20k), then you're charged for every mile you drive in excess. The charge is typically something around $0.20 per mile.

Answer 5

Leasing a car basically means you have to sign a contract, pay for your own gas and worst of all have to pay more if you go over the mileage limit. I would rather buy a second hand car rather than lease one