A high mileage lease can be an attractive option for those who drive extensively and want to enjoy the benefits of a new car without the high purchase price. Before deciding to go with a high mileage lease, it’s essential to understand how it works, what the potential advantages are, and any drawbacks that may come with it. In this article, we’ll take you through everything you need to know about high mileage leases.

What is a High Mileage Lease?

A high mileage lease is a type of car lease designed for people who drive more than the standard number of miles per year, typically 12,000-15,000 miles. Most traditional leasing contracts have relatively low annual mileage limits and can result in costly fees for exceeding these limits. A high mileage lease caters to those who predictably exceed these restrictions by offering increased mileage allowances for a slightly higher monthly payment.

Advantages of High Mileage Leases

1. Lower Monthly Payments: Compared to purchasing a vehicle, high-mileage leases generally have lower monthly payments. This allows drivers who require extensive use of a car each month to save on potential costs.

2. Newer Cars: High mileage leases allow you to drive a new vehicle every few years, giving you access to the latest technologies, safety features and fuel efficiency improvements.

3. Reduced Maintenance Costs: Leasing a new car typically means fewer maintenance issues and lower maintenance costs since warranties often cover most repairs during the lease term.

4. Tax Benefits: For self-employed individuals or businesses using the vehicle for work purposes, leasing can provide tax benefits by enabling deductions for business expenses related to the leased car.

Disadvantages of High Mileage Leases

1. Mileage Caps: Although high mileage leases offer higher annual mileage limits than traditional leases, there are still limitations in place. If you exceed these restrictions, expect additional charges per mile.

2. Ownership: With a high mileage lease, you will not own the car at the end of the term, and if you choose to purchase it, you may end up paying more than if you had financed it initially.

3. Wear and Tear: Lease agreements contain clauses for excess wear and tear. If your vehicle experiences any significant damage or excessive wear during the lease term, you might be responsible for additional fees upon return.

4. No Customization: When leasing a vehicle, customization options are limited because the dealer expects the car to maintain its value when returned.

Is a High Mileage Lease Right for You?

Before opting for a high mileage lease, evaluate your driving habits and ensure that the annual mileage cap provided will be sufficient for your needs. If you frequently embark on long trips or foresee your driving requirements increasing significantly in the future, carefully consider whether a high mileage lease is the most cost-effective option for you. It’s always advisable to compare different leasing options, companies and vehicles to find a deal that suits your budget and needs.

In conclusion, a high mileage lease can be an excellent choice for drivers who need more miles each year than offered by conventional leases. By understanding how these leases work and considering both their benefits and drawbacks, you can make an informed decision on whether this option is best suited for your lifestyle.