My girlfriend thinks she is getting a good deal and i think she is getting ripped off. She wants to lease, hasn't signed the paper yet, 2007 Ford Focus for $225 a month for 3 years. They are giving her 10000 miles a year. Each day she travels to work for 40 miles. I think this is a very bad deal, what do you think?
2007-08-30 05:35:16 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
40 miles times 5 days a week=200 miles.
200 miles a week times 50 weeks=10,000 miles.
This is a horrible decision. She has barely enough miles on the lease to get to work and back. And the end of the lease, she will be stuck either buying the car, or paying HUGE penalties. At $.20/mile (a common charge for going over her miles) and 15,000 miles over (5,000/year) this comes to $3,000 due at the end of the lease.
The numbers I used are based on 10 years of experiance in the car business. She needs to rethink this lease. I never wrote a single lease for 10,000 miles that had a 'happy ending'. I never got anything but bad feedback from people that had low mileage leases. Tell her to figure her miles REALISTICALLY and plan for the future. This could destroy her credit and her finances in the long run.
2007-08-30 05:48:08 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Leasing is never a good idea. Don't let her be seduced by those seemingly low lease payments because all the money she saves on payments will be spent when she terminates the lease.
10K miles year is a joke. Do the math. That's only 27 miles a day. If she works 5 days a week and goes NOWHERE else in that car except to work she's going to go over her mileage sometime in September. That means that every day from the middle of Sept to Dec 31 it will cost her money to drive to work. Add that up over three years and her termination fees are going to kill her.
2007-08-30 06:57:52 · answer #2 · answered by mccoyblues 7 · 0⤊ 0⤋
Very bad Deal. She will go over the mileage big time and then she will owe more on the vehicle then its worth at the end of her lease. Each mile over 10,000 per year, they will charge her anywhere from 15 to 30 cents per mile. So if she did 15,000 miles a hear, she would be 15,000 miles over after 3 years. This would cost her anywhere from $2300 to $5000 depending on the overage rate. Tell her to get the best deal and just buy the vehicle, do not lease.
Leasing only pays if you are using it for a company and can write it off as business expense.
2007-08-30 05:43:18 · answer #3 · answered by Anonymous · 1⤊ 0⤋
If she drives that much just in work miles, leasing might not be for her at all. This is not a good deal for her.
2007-08-30 06:08:10 · answer #4 · answered by Jay P 7 · 0⤊ 0⤋
Doesn't sound all that great.
I would tell her to go to some other car manufacturer or just buy it.
2007-08-30 05:47:40 · answer #5 · answered by Evgeni 7 · 1⤊ 0⤋