High Mileage Leases: Everything You Need To Know
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Car leasing has its pros and cons, and it’s for everybody. For instance, conventional wisdom dictates that if you’re a high-mileage driver, leasing isn’t the best solution because of expensive excess mileage fees.
If you’re a high-mileage driver, most people would recommend that you buy the vehicle instead. But is leasing really off the table for high-mileage users? Not exactly because high mileage leases do exist.
For today’s post, we’ll talk about high mileage leases. Is it a good option for high mileage users, or is it simply a money trap? Let’s take a look.
What is a High Mileage Lease?
The majority of car leases come with stringent mileage limitations, generally between 10,000-15,000 miles each year. Should you go over the mileage limit at the end of your lease, expect to pay significant excess mileage fees - typically 10 to 25 cents per mile over the limit.
If you’re the kind of driver likely to exceed the standard mileage limitations, some lessors may offer to raise the mileage cap to accommodate your needs and is often referred to as a high mileage lease.
As the name suggests, a high mileage lease is a rental agreement designed to accommodate drivers that use more miles than the average person. Many high mileage leases offer about 100,000 miles for a 3-year term. From salespeople to frequent road-trippers, the extra miles can make all the difference for drivers that spend most of their time on the road.
As you might expect, the extra mileage comes at a cost - a lot more than your standard lease. However, in most cases, the increase in monthly payments tends to be less expensive than paying for excess mileage fees. Also, a few lenders may even refund some of your money if you’re unable to use the extra miles.
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How Do You Get a High Mileage Lease?
Car leases are tailored to the needs of the lessee, so there’s plenty of room for negotiation. High mileage leases are no exception. To get a high mileage lease, all you have to do is to ask your lessor. Keep this in mind because high mileage leases are typically not advertised as much as standard leases.
In addition, these leases are only available in several geographic locations and for certain makes and models only. Therefore, it’s always best to ask the dealership if a high mileage rental is available for you and for which vehicles.
Once you’ve confirmed that a high mileage option is available, carefully evaluate how many miles you drive each year. The last thing you want is to pay for miles that you won’t end up using. But as mentioned earlier, some lessors will be happy to refund your money for unused mileage. Again, this policy can vary from one lessor to the next, so make sure to confirm with the dealership.
Also, take the time to consider the cost of leasing versus the cost of purchasing a vehicle. In some cases, it may make more sense for you to purchase the car instead of picking a high mileage lease.
If you decide to get the lease, make sure that you read the fine print before signing. Run the numbers and review the terms to ensure that you’re getting a deal that best fits your needs.
What Are The Advantages of a High Mileage Lease?
High mileage leases offer almost the same benefits as a standard lease. For starters, you get to drive a brand-new vehicle with the latest tech and safety features at a fraction of the price. Moreover, you don’t have to be burdened with a highly devalued vehicle after three or four years.
In addition, a high mileage lease allows you to skip the hassles of selling a car with 100,000+ miles on the odometer. This also means that you’re protected from any sudden devaluation that may hit your vehicle. Devaluations can happen when new technologies or regulations are introduced that can make your vehicle less desirable.
Ultimately, the biggest draw of a high mileage lease is for the peace of mind that consumers can drive more than a standard lease. If you’re unsure of how many miles you’re going to use, this type of lease might be worth negotiating.
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When is a High Mileage Lease a Bad Idea?
Just because this option is available, it doesn’t mean that it’s the right leasing term for you.
For starters, if you don’t think you’ll go over the mileage cap from a standard lease, a high mileage lease won’t make sense. Instead, you’re better off with a typical lease (with higher upper limits) and closely monitor your miles.
Another consideration concerns the leasing of higher-priced vehicles. If you fancy a higher-end car, it might be better to purchase the car rather than taking on a high mileage lease - even after the depreciation cost. Therefore, it’s always best to run the numbers and make sure that a high mileage lease will actually save you money when compared to buying.
Can I Upgrade to a Higher Mileage?
Some finance companies will allow you to upgrade your mileage limits even when you’re on a standard lease - it’s often referred to as a ‘mileage extension.’ Again, this is a case of simply asking the lessor if it is available to you, and the approval will depend on their discretion.
Sometimes, the lessor will simply adjust your contract and monthly payments, or you may incur additional charges for changing the agreement. Again, take the time to calculate just how much extra mileage you need before finalizing the contract.
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High Mileage Lease: Is It Right for Me?
Before signing any lease, evaluate the terms if they fit with your budget and lifestyle. If you love out-of-state road trips or your job requires you to travel a lot, a higher mileage lease may help you save money. High mileage leases are particularly useful for business purposes.
At the end of the day, it all comes down to individual requirements. Calculate your typical usage in a year, and your total number of miles will likely dictate if a high mileage lease is right for you or not.
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