I’m new to leasing and was wondering your thoughts on a couple of things mileage related:
What is the connection between the mileage in the lease term (12k/yr) and the warranty period? If I am looking at a 36 month, 15k/yr lease, but the warranty period is a 36 month, 36k, that would leave me 9k without a warranty. Is this a negotiable warranty period or do you all get extended warranties?
Most leases appear to be 12k/yr, which is basically 32 miles per day. Is the price differential between a 12k and a 15k less than the additional mileage cost on lease turn in? Any mathematicians around?
If you need more miles than the warranty covers, youll need to weigh the risks.
Depends on the vehicle.
Build a target deal for the one youre interested and compare the extra cost of going with 15k with what it would cost to pay the mileage overage instead. Usually cheaper to go 15k than pay per mile, but it varies by vehicle. You’ll need to work it out for the vehicle you are looking at.
After I posted this I remembered ChatGPT existed and figured I’d have it run some numbers:
It assumed: Toyota lease, extra mileage costs 0.18 per mile, and either a $20 or $30 additional monthly charge. Both leases are 36 month. So, two scenarios.
Lease A: (12k)
If drove it for 45,000 miles, that is 9,00 over. 9k x .18 = $1,620 in addt’l cost
Lease B: (15k)
If drove for 45,000 miles, no additional cost. But price difference of either $20 per month ($720) or $30 per month ($1,050).
Is the extra mileage cost locked in on the initial contract date OR does it vary and depend on the mileage rate cost at lease end?
I guess I’d also have to include the cost of the additional warranty (mileage) as well. Back to google…
If you want the answer to your question, it is dependent on the specific vehicle/deal. Stop wasting time with chatgpt and figure out what it means for the actual deal you care about.
Can you post any examples from this forum where we discussed anything based on what ChatGPT assumed?
And you’re going to have to be much more specific about what vehicle(s) you need because it may either be a terrible lease regardless and/or a luxury brand with a 50k mile warranty may be a better lease
Of course every lease is different, and yes, the numbers will depend upon a myriad of factors, which is why my questions were of a general nature rather than an “analyze my lease” post.
Not sure what the “Solterra” thread is about, so feel free to post a link if I can find my answers there.
Figure out how much extra it is to got from 12k to 15k. Then compare that to the cost of additional mile charge at the end of the lease.
It’ll be something like you pay 15 cents upfront for the extra miles or you take the risk of paying 25 cents at the end. But maybe you only got 1000 over which means you’re still better off than buying 6k extra over the course of the lease. But what if you go 5K over you’re worse off.
So it’s up to you. Do you want to bake in 15(or whatever the number is in your situation) or risk 25. There’s no right or wrong answer, everyone has a different risk reward calculus.
And sometimes you can go crazy overthinking it too.
As a general rule you should never lease a car where the lease ends past the warranty. Cuz the what’s the point? You’re leasing a car you have to repair. Don’t do it.
So there’s the absolute contract-locked value, and then some financial services let you prepay that penalty for a slight discount, but I’m 95% sure Toyota is not one of them.
You’re conflating warranty and mileage. Warranty is an is or isn’t thing, with both a time and mileage component in almost all cases. If you go over miles even if you paid for them on your lease you don’t have a warranty. If your car is old enough after it was registered as sold to the manufacturer (even if you didn’t get the car yet), then the warranty timer usually starts ticking.
Stop googling crap that is super generic or isn’t accurate, or using chatgpt which is spitting out word vomit that it thinks is right and folds like a reed if you say otherwise or phrase your question in the right way, and read an authoritative source or read something like leasing 101 that teaches you how to ask the right questions somewhere you can get the right answer.
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