One of the most common questions I hear is:
“Should I lease a car if I drive a lot?”
Many people think leasing is off the table if they rack up a lot of miles each year, but that’s not necessarily true. The key is setting up the lease properly to match your driving habits so you don’t end up with unexpected penalties at the end of your lease.
Let’s break this down so you can make an informed decision.
When you’re sitting around talking about leasing with friends, you’ll often hear something like “I can’t lease because I drive too many miles.” I challenge that thinking. If you’re driving 20,000 miles a year on a six-year loan, you’re driving the value right out of the car, and by year three you’re probably out of warranty and facing expensive repairs.
With a properly structured lease, you could lease for even 20,000 to 30,000 miles per year, and walk away after three years with no hassle. Most leases typically allow 10,000–15,000 miles per year, but they can be customized for higher mileage if that fits your lifestyle.
Here are a few things to keep in mind:
✅ Know your excess mileage charges
If you go over your lease mileage limits, you’ll usually pay 15–30 cents per mile. Most leases average 20–25 cents. Write this down so you can do the math and plan accordingly.
✅ Consider your driving patterns
If your driving is completely random — say, unpredictable travel for work — then leasing might not be the best fit. In those cases, a traditional purchase with a loan might serve you better, especially if your employer reimburses mileage.
✅ Look at the benefits
For those who can consistently predict their miles each year, a lease can make sense. You’ll have a newer car every three years, most likely under full warranty, avoiding costly repairs.
✅ Pay for extra miles upfront
You can prepay for additional miles at about 10 cents per mile when you set up the lease. That’s much cheaper than paying 15–30 cents at lease-end if you go over.
✅ Track your miles monthly
Don’t let your mileage sneak up on you. Check your odometer monthly and compare against your lease agreement. This helps you stay on target and avoid surprises.
✅ Have an exit plan
If you do go way over your miles, you could buy out the lease at the end. This avoids paying a mileage penalty, though it should be a last resort. For example, if your driving habits changed due to a job move or military transfer, buying out the lease could be a smart solution.
Bottom line? Driving a lot doesn’t automatically rule out leasing. It just means you have to structure the lease to match your needs and keep an eye on your miles.
If you have questions or want help setting up a lease that works for your driving habits, reach out. We’re here to make sure you get the best deal possible and avoid headaches down the road.
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