When you lease a car, Is it worth it to pay more monthly for more than 10k miles per year?

Question

The reason I ask is because at the end of the lease you can buy the car and keep it, so is paying more monthly just going to be giving them more money when in the end you will pay the blue book price anyways? If you dont understand say so and ill be more specific

Well I can get it with no money down and tax rolled into the monthly payment. It will be approx. 240$ a month with zero down on an $18,600 car. I couldnt find a way to pay that a month financing it.

Answer 1

Pay for the amount of miles you think you'll do. Don't go into the lease planning on buying out at the end. The residual value is usually inflated and not a good representation of the vehicles value at the specified time. Instead, you may feel that it's just time to lease another one. It's better to be safe than sorry, the last thing you'll want at the end of the lease, if you end up hating the car and can't wait to get rid of it, is to shell out a couple of grand in over-mileage charges.

Answer 2

If you look at what car you can afford just based on the monthly payment and not what the car is costing you you're being pretty silly. Add up the cost of the leasepayments, the money down, and the residual price and you'll see you pay much more for the car.

But anyways-- as to your question-- usually they set a predetermined purchase price for the car as of when your lease would expire. If you are paying more monthly to have more miles on the car, then at the end of the term the car would have higher miles and be depreciated further-- so the residual price of the car should be lower under this scenario.

If they want the price to be the same in both cases, don't do it.

Answer 3

When you lease you are paying for the depreciation. The more you drive the higher the payments because you are lowering the end value of the vehicle.

If you take the lower payment without the extra mileage, and you buy it out at the end, you will probably be paying more than the car is worth
.
If you buy the extra mileage upfront the end value will better reflect the actual value.

If your intention is to buy it at the end anyway you should also consider just buying it up front. The lower rates if any, will be on the total loan, vs. refinancing your lease when it's over at a much higher interest rate.
Hope this helps.

Answer 4

if you want to own the car its better to finance or pay outright. if you lease and then decide you want to buy the car, then you will pay more than the price of the car and that could mean thousands more. why would you want to rent a car other than for the purpose of getting a new one at the end of the lease?