Expecting to do high milage -is unlimited milage lease good?

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sfkayaker

New member
Joined
Aug 29, 2014
Messages
3
I have read the comments about getting unlimited mileage lease as opposed to 12k a year.

I expect to do a lot of miles, say 20K, and I would likely buy the car at lease end (and not pay the excess milage overage).
So why would I not just go for the lowest payment with 10k or 12k miles a year?

Whats wrong with my logic.

BTW - buying the car rather then lease is not good because the incentive is not there ..

thanx
tim
 
If you actually buy the car, then it's identical except that you pay more or less in the first three years. But if you're driving 20K miles a year and decide not to buy the car for some reason, it will cost you. We have had our car two weeks and already have 1500 miles on it. The unlimited lease is an insanely good deal if you are planning to make use of it.

My experience is that most people who get an EV find they drive it more than expected, avoiding use of their ICE vehicles whenever possible. My Ford Focus Electric is exactly a year old and has 22K miles on it already.

If you are really driving 20K miles a year and don't take the unlimited lease, you are effectively committing yourself to buy the car at three years.
 
If you're buying the car at the end regardless, you will find that the increased payment mostly goes to the lower residual. The actual increased amount you pay for unlimited miles over the total lease term plus the buyout is less than $100 if my memory serves correctly. To me, that's good insurance in case you have a good reason to walk away at the end of the lease.
 
Unlimited mile lease allows you to walk away if something way better is available in three years.
Otherwise you will be buying your way out of the vehicle with the mileage fee.
As long as you buy it is about the same either way so no loss.
 
smkettner said:
Unlimited mile lease allows you to walk away if something way better is available in three years.
Otherwise you will be buying your way out of the vehicle with the mileage fee.
As long as you buy it is about the same either way so no loss.

Unlimited (or any) lease enables you to capture the $7500 federal tax credit immediately. It gives you the option to turn in a 60,000 mile three year old car for maybe something better (but doubtful on that).

A lease puts you in the drivers seat with a power payment. No cash out of pocket. Still a $2500 state rebate, whether you lease or buy.

Honestly, I see no reason to buy with a lease this good. Plus, you still get to buy in 36 months for $18,000-ish if you really want to!!!

You are never "upside down" in a lease. Just make the monthly payments. If the car is "totaled" by the insurance company, walk away. You're done. Go buy a Tesla Model 3.
 
I thought on a lease, Toyota gets the 7500 fed tax credit, the buyer gets the 2500 state rebate. I didn't lease, but I think that's part of the reason the lease incentives are more generous
 
Weekdayskier said:
I thought on a lease, Toyota gets the 7500 fed tax credit, the buyer gets the 2500 state rebate. I didn't lease, but I think that's part of the reason the lease incentives are more generous
You are right. That is what Tony meant above - you "capture the tax credit immediately" because it's rolled into the lease and incentive package.
 
miimura said:
Weekdayskier said:
I thought on a lease, Toyota gets the 7500 fed tax credit, the buyer gets the 2500 state rebate. I didn't lease, but I think that's part of the reason the lease incentives are more generous
You are right. That is what Tony meant above - you "capture the tax credit immediately" because it's rolled into the lease and incentive package.

Toyota didn't start doing that until July 2013. That's why I bought the first one, and unlimited leased the next two.
 
Even if you can't get $18k in the market... like Tony said.

The fact that being a lease, you can charge 100% and go further without babying the battery. If it goes bad, bring back for a new one. If it loses a lot of range, you have to option to return and walk away... hopefully for something better in 2017.
 
Tony, I am just about to lease myself a 2nd blue one, for that very reason. Once they are all gone, values will skyrocket. :D
I'll sell car A and make enough on the equity to pay for car B's lease...
 
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