Originally Posted by DaveRitsema
Yep, thats a tough one to get out from underneath. Not very attractive to a potential buyer when looked at a dollars per mile scenerio.
$375 per month for 20 months is $7500, add the transfer fee and gap insurance and your over $8000 to only drive 10,000 miles. .80 cents a mile before you put any fuel, insurance or plates is one expensive lease!
So lets assume a standard 12k/year lease. Pricing out a similar vehicle, you get a $696/month lease payment. This works out to $0.70/mile per your prior calculation.
If we assume a takeover of this vehicle runs the same clip of 10k miles a year, your total monthly cost would be:
1) 375/month * 20 months = $7500
In 20 months you would put 20k miles assuming 12k miles a year. I have a balance of 10k miles meaning you pay overage at $0.25/mi for the other 10k:
2) 10k miles * $0.25/mi = $2500
3) $2500/20 months = $125/month
1) + 3) = “revised” monthly payment = $500/month
Versus walking into your dealer now you would pay ~ $700/mo.
Now obviously in this case you would pay the mileage overage as a lump sum at time of vehicle return. But the financials assuming standard lease terms are pretty attractive.
This is only unattractive if someone Is planning on staying with the 10k remaining miles, which i doubt most people would be able to do.
Fuel/insurance/plates would be no different on a dealer bought car, and on transfer fee/gap insurance im sure thats something that can be worked out.
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