60 month lease - Really?

I get it that “good” deals are still hard to come by on certain brands and models, but why would anyone contemplate getting into a 60 month lease?

I am not here to shame any dealer/broker offering such lease terms, but would you ever jump into a deal like that for the “right” car?

I wouldn’t.

Maybe not 60 but 48 (or the span of your average B2B warranty) looks feasible.

“I need to keep my payment under $X00 a month.”


It’s not just duration in terms on months. It’s also miles.

A 48/15k lease is 60k miles. That’s 24k miles beyond a mainstream vehicle’s 36m/36k warranty.

The person who’s payment-stretching is also likely to be the person who’s not in a great position to pick up a big repair bill.


I’ve been seeing 48 month and 60 month lease “deals” being offered on luxury cars with 7.5k miles per year.

I took a 48 month 10 k mile deal on an eclass but planning to flip sooner than that now that MB is allowing third party lease buyout

I think leasing close to B2B is good idea, as if anything goes wrong insurance or B2B will cover, but once B2B expires lease becomes a financial grenade IMO ready to go off at anytime.

TBH I wouldnt want to even own a car past its B2B because how expensive all the new gadgets have gotten in new cars to replace and I’m not the type to be ok with shit being broken in my vehicles.

Ive had a few brokers request 60/7.5K leases lately.

@RVguy has talked about it as well and just doing a pull ahead on 36 or 48mo

In some states we do 15-20% of our total lease volume on 48mo and 10-15% on 60mo. Across all of our states we do about 12-15% on 48mo and $3-5% on 60mo. Some of our credit unions charge higher rates for longer terms so the payment advantages of the longer terms decrease.

These longer term leases usually get traded out around the 36-42mo mark with positive equity and the customers had a payment about $20 lower on 48mo and $30-40 lower on 60mo compared to 36/39mo.

All of my friends and family that I have advised on leasing I steer them to those terms with the intent on getting out early. Not all lease agreements are structured to trade out early w/o hassle but our lease agreement was built that way on purpose.


Oh, I kind of get that. Most luxury cars have a 4-yr/50K mi warranty (I think Genesis has a longer one?), so, if you don’t drive a lot of miles and want a new car every 4-ish yrs, I guess it sort of makes sense.

To me, 3 yrs feels very short, but 4 yrs feels (totally subjectively, of course) like a “good” amt of time to have a car b/f you get tired of it.

When I started leasing 4 years ago, I was unaware of longer term leases. I’m currently on my second 36-month lease.

Yeah it’s really dependent on the person at the dealer that is desking deals to be aware of the options at all the lenders to find the best lease deals that make the most sense for each customer.

My first and current lease is with Audi Financial Services / VW Credit. They usually have a 3 month pull ahead program (I took advantage of that with my previous lease).

I can’t imagine being in lease for more than 3 years, tbh.

With the rate environment today roughly 150bps higher than where leases were originated 2-3 years ago and the general lack of incentivized captive leases, payments on a new captive lease will be $100s higher per month. If you don’t want to get into a lease for more than 3 years then you’ll need to be willing to pay a lot more. That is the primary reason we are seeing a push to longer term leases on our program but since the RVs are set to hit positive equity well before the end of term, dealers that stay on top of their portfolio of customers can keep the trade cycle in the 3 year range on average even when they do 48 and 60 month leases.


don’t most cars get a face lift in 4 year cycles?

1 Like

100k powertrain I think.

Usually. So it’s not like you miss out on anything “new” w/ a 4-yr lease (IMHO).

1 Like

If leasing a highlander my 48 month leases are $75/mo cheaper then 39 months. In that situation I would definitely do the 4 year term. So 48 months 650/mo or purchase for 900/mo over 60 months. There’s times it does make more sense to extend the lease. Not sure about 5 years though…that’s pushing it. Just depends on the math/warranty and brand