What equity? He won’t have any.
Look at Subaru (Impreza etc is Leasing well right now and it’s relati cheap to add extended warranty)
The numbers work out to $375 per month in overage penalties before you get to the payment. I can lease the Murano with all my miles bought upfront, 100k Powertrain warranty, and tire/rim hazard/1500 damage allowance for $700, on a Platinum.
If it was my money I probably look to maximise that stipend to finance a Highlander. The warranty mostly sucks, but the reliability is better - you could maybe get an extended warranty?
3 year old Highlanders with 110k miles+ are still at $16-20k so you’d still have some equity after a few years i’d imagine.
Vehicles must be within 6 years old to qualify for our full stipend. I never view it as an extension of salary and 108 miles round trip I prefer new. My Maxima is at 211k and other than a rear hub has been trouble free. I have 2 offers pending with everything I need that has me just under my stipend. Waiting for 2 more numbers back and I’m going to pull the trigger.
Which make and model?
Nissan Murano SL Midnight
Like someone else said, if you pick something with good resale value you are best off financing and selling. I also drive a lot for work and get a vehicle stipend, but I view it as income to avoid blowing it all on a car. You get 650 whether you spend 900 or zero…
I just sold a 2011 Acura TL with 185k miles for $8k. Little more than a bag of peanuts. Depreciation cost was $0.04/mile while I owned it, which is FAR less than any lease. You’re going to trap yourself into a pretty rough debt cycle by doing 36k/year leases.
I would be 100 out of pocket which I can swallow. I look at it as leasing for 100 a month. I do like the numbers you threw out there though. I have to have AWD though. Much appreciated on the advice and I will look at it.
My TL was AWD (that thing was a BEAST I miss her!) and the example a prior poster made with a Highlander would also be AWD and probably even less depreciation per mile than my case.
Just some quick math because I was curious myself since I also drive a ton of miles so I’ll share it.
New 2018 Highlander XLE
TrueCar market average $38,443
2015 Highlander XLE w/105kmiles
KBB Excellent condition private party value $23,576 (average)
Total cost $14,867 or $.14/mile
Your Murano cost over those 3 years, if I understand your monthly cost to be $500 with absolutely zero down (which seems really hard to believe at 35k miles a year) will be $18000 or $.17/mile
Assuming MF = finance rate, in this case buying a car and selling is significantly cheaper. Not to mention the potential excess damage costs of turning a lease in with 100k miles - every single rock hit from highway driving is going to be charged for.
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Oh wait, you implied $700/month. Yikes.
Now it’s $25,200 or $0.24/mile.
This isn’t a financial advice forum, but to me that’s a really tough rent charge to swallow.
Edit: I forgot to add sales tax to the Highlander example purchase price and an extended warranty if you want to make it totally apples to apples and I did not consider the difference between finance charges on buying vs rent charge/MF on the lease, but it’s still a lot cheaper.
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The number includes pre buy of miles, tax, their top warranty, and a 1500 allowance for damages and tire and rim road hazzard.
It sounds like you’re pretty set on the Murano. If you’re happy with it then fair enough, but I’d personally be very uncomfortable paying $700/month for a $35k vehicle.
The problem is the Murano leases poorly to begin with.
I do really like it and enjoying what you are in is important to me. At this point I haven’t signed or married to it though. I appreciate everyone’s advice.
A few people have said so
It may not be super popular here, but we’ve had a Murano Platinum for nearly 3 years and it’s been a fantastic car.
Great seats. Great infotainment. No reliability issues. It’s served loyally and without hassle.
Like you said, driving so much you want to not hate it. If you like Nissan, which seems you do, you’ll like the Murano.
I took the advice of Chris, looked at the resale of the Acura and went with a 2019 TLX AWD V6 as a purchase. If the numbers work out I can break even or have equity in the vehicle to flip before 200k.
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Nothing against the Murano. It’s not popular here because it generally doesn’t lease well.
I can certainly attest to that.
But, happy wife, priceless. Next lease we will do better.