tomk62

Going over mileage restriction on a lease

32 posts in this topic

We are 1 1/2 years into a 3 year lease for my wife, and she unexpectedly started a new job last summer so now we are going to go WAY over the mileage restriction.  Is there a way to get out of this or renegotiate?

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i'm in the same boat, with the amount of my over mileage it will actually be cheaper for me to buy the car out. As previously stated, some dealers and/or manufacturers will pay for the over mileage themselves just to sell you a new car, but that depends on how much over you are.

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There are companies that buy-out leases - check Google.  One of the best deals I ever ran into was when we leased a vehicle that we knew would use a lot of miles.  They let you pre-buy as many extra as you wanted at 8 cents a mile.  When you turned the vehicle in anything over 15,000 miles a years that you did not use they refunded at 10 cents a mile.  Sweat deal, I think I "bought" 30,000 a year and made a bunch of money as we only used about 18,000 a year.

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There is a charge in the contract for $.xx per miles over the lease term mileage.   You can just pay that and it’ll only equate to a bit more than the upfront depending on the car type.   You may also be able to buy miles from the leasing company at a discount.  If you’re over by a reasonable amount and get another car from that manufacturer they will often overlook this. Sometimes manufacturers do lease pull ahead.  This is where they forgive 3-5 payments if you lease another car of equal or greater value from them. 

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There are considerations to be looked at. 

How much you will go over and how much will that cost? Most leases are $.25 a mile, so 4K is $1000

Buying the car out at the end of the lease. 

Using ut until the mileage is at the rate negotiated and then handing them back the vehicle and just pay the rest of the cost of the lease. 

Only you can decide which is best for you. Buying the car IMO will you depend really on the car. If I was driving a lot to work (which I do), I know I’d want something good on fuel, comfortable and likely a Honda Accord. 

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Buying a car out at the end of a lease is often a fools errand.  This is especially the case on a luxury or high value car.  The reason is that car companies often set very high residuals on these cars to lower the monthly payments.  They do this in part to keep manufacturing plants running at high capacity figuring they will eat the loss at the back end.  Thus, the buyout at the end of a lease might be say $25,000 when you could in fact buy a similar car for only $20,000.

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4 minutes ago, Rob0115 said:

The most expensive way to acquire a car is to lease it then buy it out at the end.

YUP, I never understand why people buy their leased cars at lease end.  On the flip side there was a period in the 1990's when they were doing such strange stuff with residuals just to keep production going.  I leased three different Mercury Mountaineers for 2 years each and it was actually much much cheaper than leasing two for three year terms.  Makes no sense in the "real" world".  I think the two year residual was something like 80% back then.

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38 minutes ago, Rob0115 said:

The most expensive way to acquire a car is to lease it then buy it out at the end.

I agree, and that is the last time I will make that mistake. Unfortunately I was stupid enough to make that mistake the first time, never again. I just actually got my wife a new car, bought not leased. But i'm stuck because, as I stated earlier, my over mileage will cost me the same as buying the car out. Lucky for me I like my car and have no problem, other then overpaying of course, driving it for at least another 5 years.

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54 minutes ago, Rob0115 said:

The most expensive way to acquire a car is to lease it then buy it out at the end.

That's not always true. Mostly true, but not always. The math to tell which side of that equation the deal falls on is a giant PITA though. Last car purchase I looked at third party leasing offers (i.e. not from the dealer/manufacturer). Almost all of them were very close to simply getting a loan for the vehicle and stopping paying at month X. Of course the payments looked like you had a loan too, so.... there is no free lunch. 

 

 

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My new car (Jeep Grand Cherokee) I leased as opposed to buying outright.

Just do the math. Lease incentives of over 5 grand interest rate 0.09 (yes 9 hundredths of a percent interest!). plus the other BS like sales tax added up to less than if I paid cash. 

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My new car (Jeep Grand Cherokee) I leased as opposed to buying outright.
Just do the math. Lease incentives of over 5 grand interest rate 0.09 (yes 9 hundredths of a percent interest!). plus the other BS like sales tax added up to less than if I paid cash. 


Yes but when you want to lease never ever tell the dealer that up front. Always tell them you want to buy and then negotiate a price. Also go in knowing what the residuals are and what the interest rate or what they call the money factor is. That was you lock them into figuring the lease payment based on info you have locked in. You will get the best deal that way.

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4 hours ago, Howard said:

 


Yes but when you want to lease never ever tell the dealer that up front. Always tell them you want to buy and then negotiate a price. Also go in knowing what the residuals are and what the interest rate or what they call the money factor is. That was you lock them into figuring the lease payment based on info you have locked in. You will get the best deal that way.

 

LOL....

 

Yeah to the average consumer, you would think so....

But it is not how it works...... 

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7 minutes ago, 67gtonut said:

LOL....

 

Yeah to the average consumer, you would think so....

But it is not how it works...... 

Well that is how it has worked for any car I have leased.  Please explain how you see it differently.

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Because once you switch into a lease discussion.....   the price you negotiated actually never appears on a lease contract. So in essence, for the weak negotiators will end up have the lease based on a higher price if they are not versed in capitalized costs and money factors that contracts are based on....

For the strong negotiators.....  should not be a problem. But do not fool yourself, when you think you got one over on the Finance Manager and/or Sales Manager, more then likely, they are the one in actual control of the deal. We are not the idiots you think we are.....  

 

And for those that do not know my background....

30+ years in the auto industry, including at a point in my career being the #2 GMAC Finance Manager in the Tri-State region( #1 was my co-worker). 

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Because once you switch into a lease discussion.....   the price you negotiated actually never appears on a lease contract. So in essence, for the weak negotiators will end up have the lease based on a higher price if they are not versed in capitalized costs and money factors that contracts are based on....
For the strong negotiators.....  should not be a problem. But do not fool yourself, when you think you got one over on the Finance Manager and/or Sales Manager, more then likely, they are the one in actual control of the deal. We are not the idiots you think we are.....  


No one said “you” were idiots. Heck they do this stuff every day so they should be good about it. I don’t agree with you on the part about the negotiated price not showing up in the lease calculation as it always did in the vehicles I leased.

The other thing is be prepared to walk out. Every time I have done that they keep calling knocking the price down with every phone call.

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I am the other way around this time we did 15k year on new lease and the wife is only driving about 8k year now. you don't get that extra payment back either. so with trumps new tax plan eliminating write off's this may not be the way to go for us anymore.

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2 hours ago, tony357 said:
I am the other way around this time we did 15k year on new lease and the wife is only driving about 8k year now. you don't get that extra payment back either. so with trumps new tax plan eliminating write off's this may not be the way to go for us anymore.

 


Time to rent the car out or start driving for Uber to rack up the miles.

 

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Whatever you do do NOT buy that car.   You’re totally not even considering the tax you will pay.   Plus you will be paying the cost of car that was based on 36k miles when maybe it has 45 or 50 on it. 

Shit happens.  You’re stuck.  3 months before lease is over they will beg you to turn it in early.   If you like the manufacturer and want another one you say “well I was thinking about keeping this one.  You want me to come early you take my car back AS IS right now then we will talk.”   If you dont want same manufacturer you shop around and then say “I need a new car I need you to take back this one no cost to me”

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I work in lease end of term/Remarketing for one of the major US auto manufacturers. I agree that on 90% of the vehicles that we have, it does not make sense to buy out your lease. Reason being, that yes, residuals are purposely set high to come out with a low attractive monthly payment and compete with everyone else. However, there are a handful of vehicles where it is the opposite, and a lease buy out on those actually provide the consumer with thousands worth of positive equity on their purchase compared to current market values. With our process, if the consumer OR the dealer buy out the lease, the consumer is not charged for excess mileage, among other things.

 

what kind of vehicle is it and who is the lease with?

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8 hours ago, tomk62 said:

Thanks everyone for the advice thus far.  It's a Land Rover Discovery Sport and the lease is through Chase.

I can’t really help you there, not familiar with Chase’s policy. Best bet is going to be to talk to the dealer, but may not be able to get far until your in the final 12 months to maturity.

 

 

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