Short Story - he’s constantly over his mileage allowance when leasing. Currently, his lease comes to term in march and he’s already 600 miles over and determined that he’ll likely be somewhere around 8k over, costing him roughly 2k.
Current Lease - Cadillac XT4 @ 580 per month with a buyout of 29k. I try to help my family members, but some just don’t want to listen.
So, he asked me what to do moving forward…
I came up with a few ideas, but maybe others will have additional ideas.
Buyout current car.
Run the lease to term, pay the mileage fee, get into a better lease that might have positive equity towards the end. (Ie JGC 4xe)
What term did he sign up for? If 15k, then he needs to find a vehicle with 18k term (most allow this). Having positive equity is irrelevant, as that simply means you pay more depreciation than you should during the term of the lease. In other words, you are paying one way or the other for the use of the vehicle.
If he is constantly over miles and this isn’t considered ok or planned by for him, then maybe he should stop leasing? Leasing isn’t always or even often the best move.
