over mileage limit on lease

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11-15-16, 08:54 AM

#16

Dave Mac

Racer

Join Date: Mar 2007

Location: AZ

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My son had an about to be over mileage lease Lexus a couple of years ago and had a 2K trip planned. He left his car in my driveway and rented a Tahoe with unlimited mileage for the trip. The Tahoe was ideal for the trip and he not only saved some money but did not have to buy expensive tires for the GS.

As others have said though - it good to be thinking about this now but don't overthink it and spoil the opportunity to enjoy your new car. Things often change over the course of three years and your mileage may level out a bit as time goes on.

Dave Mac

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11-15-16, 09:01 AM

#17

gmanusmc

Lexus Test Driver

Join Date: Jul 2009

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Quote:

Originally Posted by jloftus

When driving in this morning (after parking the car the entire weekend, and feeling sad about it), I decided to just drive the car as much as

I want, and worry about the consequences later. Isn't that pretty much what everyone is doing nowadays, including governments?

If I'm way over my limit at lease end, can't I just opt to buy the car - essentially refinancing the residual, and then turn around and trade

it in on a new 2019 car (same or different model)?

Plus I think if I go any any trips I'll ask any passengers to pitch in towards the mileage - the at 25 cents per mile rate. I'll keep that money set aside for

the inevitable overage charge.

If that really is your plan, you should consider buying it out now. If your credit is decent, some banks and credit unions will still consider it a new car for loan purposes and offer a low rate - possibly less than 2%. Your payments will be higher but when the time comes to trade it in or sell it, you'll be in a much better position financially. If you don't do this, and have a large amount of excess mileage at the end of your lease, you'll be faced with two choices - write a big check or absorb much higher payments for your next vehicle after rolling in the negative equity you'll almost certainly have.