What’s the consensus on 20k miles per year leases?
I’m doing the san francisco to silicon valley commute everyday (80 miles round trip). I’ve thought about an outright purchase but I don’t think I will be keeping this car for more than 3 years–due to the emergence of EVs–so I don’t want to pay tax on the entire purchase price.
Honda Clarity Electric might work for you. But you might have to charge at your work place. The range is barely 89 miles, if you do freeway, with high speed(60 or above) then the range won’t be enough for you. If you are like me stuck in freeway even my commute is 80 miles a day but mainly driving around 45~60mph on freeway, then this will work.
It’s working for me so far.
Paying $475/mo on 20K mi/yr for Sonata PHEV Limited. (Keep in mind residuals on the Sonata are fairly poor)
15K/yr was about $400/mo. Add in about $10 for damage waiver and another $65 for the addtl mileage. It’s viable but most likely you’ll be over the 1% rule.
you’re pushing it on the mileage allowance. that’s good if you literally don’t go anywhere else
Those last few miles can be more expensive than the first few.
But lets keep things in perspective, If you pay say $200/month for 10k miles a year that works out to 24 cents per mile. the next 5k miles/year can be usually be bought considerably cheaper at something like 3 cents per mile. Those last 5k miles/year (to get to 20k/yr) may go at the overage rate of maybe 15-25 cents per mile depending on the make,
If you are mentally conditioned to pay 24 cents per mile for the basic lease then paying an amount close to that for overage miles isn’t so bad. I truly believe that when done right leasing costs less than buying cars.
For what it’s worth I drive 24k miles per year. Between 2 leased and 1 bought car and switching drivers (spouse and myself) and cars at appropriate dates it all works out within the lease mileage limits.
We like leases in that the cars don’t generally have issues and we get the OEM roadside assistance should anything happen
@Electric I’ve got 16 Sonata PHEV limited 20k miles per year @ $385/mo tax included. It’s doable. I’m about to turn it in under lemon law though.
I did berkeley to san jose for 8 months, it was difficult, but it helped that I carpooled with a coworker. coworker moved and after doing it on my own for a few more months convinced me to find a new place in palo alto.
and the 15K a year lease I got is going to be way under mileage, as I’ll probably be doing 7.5K at most a year now.
I go from Tracy to San Jose daily. My wife and I carpool and each have a lease so we split the miles. Works great. I have also considered lease swaps if someone is under miles or has a short term lease I can assume.
that would have killed me. dont know how you do it, as there’s no as the bird flies route.
@Justin1 my main concern isn’t the payment which is still acceptable if you get a really good deal on a car and pay for the extra miles, it’s more that you will be out of warranty with most brands after 36k miles and they often conveniently start failing right after the warranty expires. So you’d have to look at cars like BMW that have a 50k miles warranty but you’ll still be rolling the dice on the last 10k miles.
You’d prob be better off getting a 2 yr lease on a reliable car and taking it to 40k miles (only 4k miles over the warranty but less wear on the car) and turning it in vs a 3 yr lease on a 50k mi and taking it to 60k miles.
Now 2 yr leases often have a higher payment than 3 yr leases but there are exceptions.
Thanks for the tips everyone.
How do residuals typically pan out for the last 5k miles to make it 20k/year? From reading the forums, 10k > 15k results in -3% residual. So, is it another -3% for 15k > 20k? There aren’t any mentions.
@305Hackr You’re right, I don’t have many choices. I’ve been looking into the 2018 VWs and Jaguars, which offer 60k+ warranties.
@Justin1 most brands charge about 25 cents/mile for overage (some less and some give you a break if you prepay the miles).
If you take out a 24 mo lease with 15k mi year that’s 30k miles allowed + 10k in overage.
That 10k overage at 25 cents = $2500 (possibly cheaper depending on brand or if you prepay as mentioned before).
$2500/24 mo = about $100/mo extra.
So if you get a nice deal on a $300/mo car it’s going to cost you $400/mo. Not terrible IMO considering all the extra miles you’re driving. If you get a car with 50k mi warranty you’re fully covered. If you get a car with 36k mi coverage, you’re only going to be driving 4000 mi out of warranty, an acceptable risk I would personally take if it’s a reliable car like a Honda or Toyota etc. Also many brands have a pull ahead program so you can turn your car in a few months earlier and take out a new lease, limiting the time you’re out of warranty.
That’s how I personally would tackle the issue. 24 mo/15k mi year lease, pay for overage and turn in early.
If you have a problem right outside of warranty, most of them will take care of it as a goodwill measure, if you’re nice about it…or at least that’s been my experience. 4-5k is usually within reasonable limits.
i would say there’s a “possibility” but definitely not “most”.
ok, “most” may have been too strong. I’ve not been let down in my experience, but can’t speak for all brands.