My wife and I both have expiring leases in the next 4 -5 months. We both commute long distances and her current lease is for 23k miles/year while mine is 18k/year.
As we shop for our next cars, we are debating whether based on how much we drive leasing still makes sense. Since we are in Texas taxes + high miles seem to be creeping up payments closer to what it would be to buy (60+ months).
Based on the high milage requirement can someone provide some rules of thumb on what to aim for for negotiating leases (I see a lot of low milage lease deals here) or also advice on perhaps considering buying new or CPO instead.
Goal is to have both payments of new cars be below the total amount below $1368
Current cars 2017 Audi A4 - season of Audi 18k per year $587 payment. Infiniti QX30 23k per year and 751 payment (rolled over negative equity included).
I’d buy if I were you. Between the Texas taxes and high mileage, it kills the lease value. You could buy both those cars new, have lower payments, sell them after 3-5 years, and use the cash for you next cars.
To be honest even if the 36 lease payment was the same as a 72mo retail payment you’re still ahead on a German. I’m not saying it’ll be pretty but it’s still a smarter play.
Most cost effective solution? Buy a LX Honda Fit or Civic x2. Finance between 0-3%. Sell/trade each one when they get to exactly 55k miles. Rinse and repeat. You would be shocked what your total outlay per mile would be in a scenario like that. If you need a little more size and willing to give up a few cents a mile, go with an Accord LX.
strong textAssuming that you guys aren’t itching for a new car every couple years (and maybe even if you are) I’d personally go for a off-lease CPO Lexus. CPO Lexus gives you 2 years/unlimited mile warranty on top of whatever remainder of the time on the original 4yr/50k mile new car warranty is left. You are also allowed to extend the Lexus CPO warranty by 5 years (Roughly $3100)
If you read the fine print of the warranty terms, Lexus is unique from other unlimited mileage CPO Programs (Volvo/Infiniti/Mercedes are the ones I’ve looked into) in that it covers nearly everything, including suspension components (pretty much the only thing it doesn’t cover is leather/trim/cup holders/wear and tear). If you keep your car through the warranty term, could be a lot cheaper than leasing.
I bought my GS350 in 11/2016, and it is covered through 12/2024 through Lexus. I have had ~$8k of warranty items paid out for repairs between 32k miles and 120k miles in the first 36 months.
Audi is having a sales for their 2019 models now. 2020 Infiniti QX60 was on sales last December/January. Maybe come summer you will see the same rebates or better.
With those mileage requirements, I would get a Genesis or Acura if you insist on luxury brands but with good warranties and reliability, also not bleed you dry when need fixing.
On your current 2 leases you mention payments, were those payments with $0 DAS or 1st month only or did you put more money down? You say you want the payments for both new vehicles below $1368, is this number also factoring $0 DAS / 1st month only or something like $1k-$2k in drive offs?
I recommended the LX simply based on cost per mile. The LX will hold its resale value in relation to it’s MSRP just slightly better than an EX or EX-L, but only by .1-.3 cents per mile. Looking at the vehicle class you are coming from (Audi/Infinity), the Accord EX would be a fine choice. I can’t think of one better actually. It’s a fairly recent redesign, and has an interior well above its price point. Also superb resale value. As mentioned, the sweet spot for trade-in/selling will be at 55k miles (5k remaining on powertrain for new owner piece of mind). Or go online and grab a discounted “Honda” issued 120k extended Warranty for around $12-1300, and drive the HExx out of 'em. I would do the former.
