I have a question about leasing a new car....I drive a lot of miles, about 30k/year, and I am realizing that because of these high miles, my car is depreciating to a point where what i owe and what its worth are the same thing. So assuming when i am ready to trade, the car is worth nothing, should i lease my next and future vehicles? If every time i need a new car i have nothing to start with anyway, why not lease a nice car right? I am aware that leases charge for over mileage limits, but that can be negotiated up front.

Its not a good idea because if you drive 30 k a year you cant get that kind of a lease 16k is probably the most your gonna get ... and i think its like 10 cents every mile you go over but on the other hand when you lease a car you don't have to worry about it its new and if you need services done its free there is no hassle involved but then if your going to lease something in the 25 to 40 k range its not worth it because just another 100 dollars more every month and you own the car. leasing comes in handy when you own a business and your wealthy you can lease it as a company car (deduct from taxes) and if its like a Range Rover or Porsche or Mercedes you don't have to worry about the costly maintance later on

It isn't worth it unless, like he said, you own a business and can write it off under the business.

A lot of people say that they will "buy it out" at the end, but it is so much more expensive that way. Do you want to pay now or later?.. that is what it comes down to.

Buy a used car.

My dad was able to get 18k on a lease once, but that is probably the highest you'll get (and the lease rates are exorbitant at that level). You'd then end up with 36k miles over the lease limit, which at $.25 a mile (or somewhere thereabouts) will add up. You'll get a lower payment financing and won't have to pay the overages. I'd go that route (unless you can write off the lease expense).

If you can write the car off for business then DEFINITELY lease it.
But make sure you know the rules and laws regarding it. You don't want to jump into something not knowing everything.
i.e. If you lease a car at 12k miles a year and then go over by 20k miles you've been writing off your monthly lease payments since the beginning and at the turn in when you pay for excess you write that off as well.

But this is not really cost effective. Still more out of pocket, most likely. Just do a cost/benefit analysis.

How much do you lose on a trade? Why are you trading the car in and not keeping it longer?
30k miles a year is a LOT. You might want to buy BARELY used (let someone ELSE lose that drive-off the lot depreciation) drive it for 2 years and then sell it in a private sale. Selling it private will always yield you more value.

You can prolly get a car with less than 5-10k miles on it for a good deal. It's still fairly new and you will get the balance of the warranty and always have the option of getting an extended warranty.


Good luck!