Edmunds Article on high mileage leases?

Off-Ramp
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Comments?

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It was a good read.

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Try explaining that to someone who thinks leasing is renting and wants to “own” the car via making payments to a bank for 5 years, and then ends up upside down after 3 when they want the next new thing.

rolls eyes

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I am highly skeptical that:

  1. You can prepay miles up to 100K for approximately $0.10 per mile (for the excess over 36K) on an AHFC lease.
  2. Also, does his “same down payment” scenario mean drive off for the leases equals down payment for the purchase? Or is he saying cap cost reduction equals down payment for the purchase? He said all include so I would think the latter, but you never know…
  3. His purchase interest rate seems high compared to what is probably a sub-vented rate on his lease scenarios (currently posted APR special for 60 months if 2.9% through Honda)
  4. The purchase price is the same for lease and buy, however, the leases are probably listed at that price using available incentives for a lease, which are likely different from a purchase.

I mean, it’s not a bad point but there are a lot of other factors to consider and his numbers need to be vetted harder.