Leasing a car involves deciding on the best deal, including a reasonable mileage limit. Several vehicles are advertised with annual mile limits of around 10,000 – 12,000 miles.
Does this mean high mileage leases are not desirable?
Here, you will learn about the advantages of high mileage leases and everything else there is to know about this lease option.
What is a High Mileage lease?
A standard auto lease has around 10,000-15,000 miles on it annually. If you get this lease and drive more miles, you will have to pay for the additional miles.
This is why high mileage leases exist. Drivers who cover much more miles can opt for high mileages from the onset rather than deal with the cost of extra miles eventually.
High mileage leases can cover anywhere between 18,000 – 40,000 miles. With such high miles, drivers can enjoy rides without worrying about the extra costs they might incur.
A high mileage lease results in a higher monthly payment since the vehicle’s depreciation rate increases.
The penalty for exceeding your allocated miles can add up eventually. This means high mileage leases are ideal for drivers who would rather deal with higher monthly payments than pay for excess miles.
While there are several solutions to consider if you take a low mileage lease and exceed your annual miles, high-mileage leases are less restrictive.
What are the Advantages of a High Mileage lease?
There may be fewer people opting for high mileage leases. Perhaps, these drivers haven’t considered the range of benefits that come with more miles on their vehicle.
Low mileage leases are cheaper because the vehicle is returned with a higher residual value. That aside, a high mileage lease will offer as many benefits.
High mileage leases give you the peace of mind to use your miles as you wish. You have the freedom to go on trips without worrying about running out of miles.
This is why it is the best option for drivers who travel a lot but are unsure about the miles they need.
You have to pay higher monthly fees with a high-mileage lease, but it is advantageous. You will be aware of the costs from the onset and know how to plan your travels.
Low mileage leases may come cheap but think about what happens when you exceed the allocated miles. You end up paying a surprise bill at the end of the lease.
Other benefits you get with a low-mileage lease are also available with high-mileage leases. You can still drive new cars every few years and won’t be affected by a vehicle’s sudden devaluation.
Are There Disadvantages to Getting a High Mileage Lease?
A typical reservation that drivers have regarding high mileage leases is the high monthly payments the lease attracts. You can tackle this setback by negotiating better.
Reputable dealers like Lease Loco often give lessees room to negotiate the leasing terms. This is an excellent time to try reducing the cost of your lease.
Some people also consider circumstances that may arise along the way and reduce their annual miles.
For example, if you get a new job and have a shorter daily commute, you could save thousands of miles. This counts as a loss since leasing companies won’t offer a refund if you return the car with miles on it.
Can You Upgrade To A High Mileage Lease?
If you began with a low mileage lease and now have the need to upgrade, you can do this if your finance company allows it.
Some financiers allow for mileage extension, which involves altering your lease agreement to increase the miles. Be prepared to pay extra for the changes if the finance company permits an upgrade.
The new contract will state the increased annual miles and, as expected, the higher monthly payments you will now have to make.
Only a few finance companies offer an upgrade mid-contract, so confirm with yours. It is best to choose a reasonable mileage limit from the onset.
A good high mileage lease comes with an extended manufacturer warranty to cover you throughout the contract. A high mileage lease might be worth it if you think the standard miles will not be enough for your trips. Weigh the benefits and drawbacks of having more miles on your leased car and decide which is right for you.