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Old 09-14-2006, 02:56 PM
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missing23 missing23 is offline
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Join Date: Feb 2002
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Quote:
Originally Posted by schley View Post
The advantage of leasing driving 20k a year is significantly reduced. You can buy extra miles at the outset of the lease for 15cents per mile. The 15k residual is used but you would have to buy extra miles of 5k per year, which is 750 extra per year. $62.50 a month.

Or you can buy them during your lease up to 6 months from turn in for 16 cents per mile. Or if you wait till the end of the lease it is 20 cents per mile.

Keep in mind that you won't have a car under warranty for those last 10k miles or free maintenance if you drive 20k per year.

Instead of buying the extra miles at lease inception, I would take that money toward multiple security deposits which will buy down your MF. That money will then be used for excess mileage or wear and tear at lease end. Thus instead of buying miles up front, take that money to do MSD's and you can buy your MF down and then use that money to lease end, although it would be at 5 cents more per mile. This would be more advantageous when you run the numbers particularly for a higher dollar lease.
The formula for extra miles is:

Term Residual minus (Total extra miles over lease term)*0.15

Use this value as your new residual in the lease calculation.
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