Topic: leasing Questions

[mikeblue]

Hi new here,

Had a few questions regarding leasing a vehicle  and was hoping to get some answers here. Below are some question

1.  In the lease agreement if opt for low km alownace will this affect the buy out price compared to a higher km allowance and in which direction ?
2.  If I go over total km allowance and decide to buyout the vehicle at end of lease do I still get charged for km over usage and any wear and tear?

Thanks.
Mike

[Cord]

1. Low km lease will have a higher buyout. If the car has fewer kms at lease end, it will be worth more, right?
2. If you buyout the lease at the lease end, kms and damage do not matter. At least they don't matter to the leasing company. They'll be happy to accept payment for the agreed upon lease buyout no matter what the condition of the car is.

[mikeblue]

Thanks for the reply. That makes sense

[ArticSteve]

In the lease agreement if opt for low km alownace will this affect the buy out price compared to a higher km allowance and in which direction ?

residual will be lower, but monthly payments will higher.  gotta run the numbers to see what suits your situation.

[Cord]

^^ Uh no, it's the opposite.

Low km = higher residual = lower payments.

[Niklasky]

This may be a silly question, but I'll ask anyway.

If I choose a high km allowance and drive less than expected, does it change anything to the residual at the end of the lease ? The dealer takes back a car that has less km and is therefore worth more than the residual, would they give me anything in return, like a bonus or a discount on my next lease or purchase ?

[dirtyjeffer]

This may be a silly question, but I'll ask anyway.

If I choose a high km allowance and drive less than expected, does it change anything to the residual at the end of the lease ? The dealer takes back a car that has less km and is therefore worth more than the residual, would they give me anything in return, like a bonus or a discount on my next lease or purchase ?

i'm not an expert, but i don't think you get anything back...i think you are essentially buying "insurance" with the higher km leases...ok to go under, pricey to go over.

[tooscoops]

you don't use it, ya lose it....

unless you buy it out at the end, then you have bought it at a value expected of a car with the higher kms... but that is not something to plan for.

the only time you get money back is with some lease companies on high km leases. even that is a rarity.

[Niklasky]

Thanks !