Myth: I Drive a Lot of Miles, I Can’t Lease a Car
Common Concern of Car Shoppers and Why YOU CAN Lease a New Vehicle!
One of the most common concerns customers share with me is “I can’t lease a car, I drive a lot of miles”. Although I agree that leasing is not necessarily for everyone (for example: if you like to keep your cars for a long time), driving a lot of miles may not be as bad for leasing as you think.
Mileage Penalty: In reality if you drive a lot of miles it adds to the cost of ownership whether you lease or buy. A lease will cost more in your monthly payment, as a cost per mile. When you own the vehicle, high mileage will “cost” you more by decreasing the value of your vehicle when it comes time to trade it in or sell it privately. Summary: You either pay for extra mileage during a lease or you “pay” with a lower trade-in value. Either way it costs more to drive more miles.
Auto Accident: One reason it may make more sense to lease than to buy is the chance you may have a fender bender (P.S. We have a great Collision Center & Body Shop to help you with that!). When you drive a lot of miles your chances of getting into an accident increases with each mile. One of the things that greatly affect the value of your vehicle is the CARFAX Vehicle History Report. If you own the vehicle, having an accident on the CARFAX Vehicle History Report can greatly affect the value of the vehicle at time of trade-in or if you sell it privately. As the owner/title holder, you are responsible for the risk in loss of value. If you leased the vehicle, the owner/title holder (the leasing company) is responsible for the risk in loss of value. In this case, after you get your vehicle fixed and at the time of lease expiration, if the vehicle has lost value because of a damaged CARFAX Vehicle History Report you get to hand the keys over to the lease company and it is their loss now.
These are just two examples of why if you drive more miles than the average driver, it doesn’t necessarily mean that you can’t lease a car!
Written by Steve Carroll
COO, Hoselton Auto Mall