Way Over Mileage - What should I do?

Ask the Hackrs
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1

Hi everyone!

So I leased a 2018 Toyota Tacoma in April of 2018 with a 12K per year / 36 Months lease (36K miles total).

I am currently at 30K miles and 19 months into the lease.

That means I only have 6K miles left over 17 months but I am averaging ~1,600 miles/month which gives me ~ 4 months until I go over my mileage.

When I hit my 36K mileage limit I will still have ~13 months left on my lease!

What options do I have in this scenario? (My buyout price is $30.3K which is very high)

My contract says each additional mile over 36K is charged at 18 cents a mile, should I just keep driving over and pay the 18c/mile extra when I turn it in 13 months down the road?

I know there is a standard $350 turn in fee when my lease ends but if I turn it in early is there an extra penalty?

My current monthly payment is ~$250/mo w/ tax included. If I turn it in early do I just pay the remaining balance (17 months x $250 = ~$4,250 + $350 turn in + any extra penalties for turning in early).

Since my monthly payments are so low I don’t think my “buy out” price is any good at $30.3K, especially comparing it to what similar used Tacoma are selling for.

Any information is greatly appreciated!

Thank you for your time
JDW

2

Tacoma’s hold their value really well. See what your buyout is vs what Carvana, Carmax or Vroom would offer you.

3

My payoff amount is $30.3K which is really high compared to what current used Tacoma’s are selling for.

4

Aren’t the miles cheap, like $0.15?(oh you said $0.18, just spotted that) I’d just keep driving it and see what’s up at the end with trade value vs just paying the miles. What happened that you are driving so much? Maybe grab another cheap lease for commuting

5

The miles are 18cents a mile and I’m guessing that is pre-tax so roughly 20 cents per mile. If i’m driving ~1,600 miles per month that is ~$315 in mileage fees + $250 regular monthly payment = $565/month which is over double what I am used to.

6

I started my own business and didn’t realize I would be doing so many miles!

7

Buy a beater truck for work

1 Like
8

I know people situation changes but leasing isn’t for people who can’t stay under mileage as Joe said maybe grab a cheap lease to commute.

9

Sounds like a business expense or get another lease for that and write it off

10

I’d just pay the overage and take it as a lesson learned. $0.18/mile is relatively cheap as far as miles go.

Have you called Toyota Financial (or US Bank or Ally, whichever owns your lease)? You may be able to prepay the overage and save a bit over what is in your contract.

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12

You may be surprised what vroom or carvana may offer. Get a quote before your mileage creeps too high. You can get a quote in 2 mins on their sites.

Alternatively throw a $2000 inventive down on a lease transfer to cover additional miles and someone will likely take it over at $250 a month.

You are looking at $4k in mileage overages by lease end so pick the solution that will cost you the least.

Check your contract for early lease end fees if any

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13

Toyotas hold their values really well.

  1. You could as others have mentioned, get a quote from Carvana.

  2. You could buy a cheap used car and use it for your business and write off the mileage on your taxes.

  3. You could sell it privately and see how close you could get to the payoff.

  4. You could pay the mileage penalty when you turn it in.

14

Talk with Cody Carter on this forum. I know if you get into another Toyota they do waive some miles and wear & tear.

Also check these websites for quotes as well. I got one sold on Tred and they beat all quotes plus picked up with check in hand.


tred.com
drive.com
sellmax.com

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Please replace drive with driveo.com

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pinebarrennogas11
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6 Likes
17

Overage will set you back $3700. As other have mentioned see what you can sell it for. If your upside down less than $3700 you come out ahead.

(1600mile/month X 13 months) X .18/mile = $3700

It makes little sense to buy a beater. You’ll be paying insurance on a second car and losing a little to depreciation.

18

Switch cars with your wife!

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19

Thank you for providing the math and showing the average overage charges.

That $3700 over 13 months comes out to $285 a month + my usually monthly payment of $250 comes out to $534/month for the last 13 months.

I may go this route and see if I can trade into another toyota and see if they will waive my overage mileage.

20

Great idea & thank you for sharing! I tried to see if I could buy extra mileage and they said that has to be done at the time of purchase.

21

They won’t waive anything since you will be trading in and not doing manufacturer’s pull ahead. So your overage is irrelevant, the price they give you is.

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