Wear and Tear: How much should it cost?

Ask the Hackrs
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1

Greetings,

This may not be popular but I am interested in purchasing “Wear and Tear Insurance” for my next lease. Basically, I just want the peace of mind. That being said, I have a couple of questions I hope you can answer.

Thank you in advance.

  1. How much should it cost for a $50,000-$55,000 vehicle?
  2. Is there any way to purchase it on your own (not through the dealer)?
  3. If I use a broker, can they help with negotiating the price of said insurance?
2

Wow. Not one response! LOL

3

If you buy it on your own then the chances of you being able to negotiate the price of it goes much lower. Most folks buy it at inception if they feel it’s necessary and the cost of the wear and tear depends on the service provider and less on the price of the car.

I promise that wear and tear insurance probably costs a lot more on a 55k dollar Land Rover than it does in a 55k dollar Lexus.

It’s all mostly a matter of how much you think the wear and tear is worth on your car. How much would it cost you to repair/refurbish at your own cost?

I’m willing to guess the reason you didn’t get any responses is because you asked an extremely general and complicated question that does not have a single answer. There are too many factors to provide any “go fast” rules or responses to.

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4

The numbers I’ve seen at dealers are often $2000 for the lease term ($50+ per month). It’s one of those insurances that people tend to abuse (those that have it may be disincentivized to drive their vehicle carefully). If it covers tires, they will return the car with bald tires, etc.

If you’re pretty good at taking care of your vehicles, then you’re better off earmarking some amount for any excessive wear. For example, I just had an inspection done on a car with a small 3-4” dent and the inspection said $275 or so. I’ve leased 8 or 9 cars and never would have come close to the premium for this coverage.

5
  1. will vary A LOT by brand
  2. yes
  3. yes
6

Thank you all for your feedback. Let me make it question more specific…2020 BMW X3 MSRP $52k…Regarding , buying it on my own, could you please at least one company? All the ones I have seen online state that must be purchased through local dealer.

Thanks again.

7

First you ask a question that’s been asked a million times before and then you think it’s appropriate to bump your own topic just 4 hours later?

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