Is the lowest monthly car payment always the best deal? Not lately. And not with $2 a gallon gas.
New analysis from Swapalease.com shows that many car shoppers would end up spending less on their lease if they opted for more miles when negotiating their deal in the showroom. Why? $2 a gallon gas is having a lot to do with that since more people today are spending for extra mileage at the end of their lease. In each case it would have been cheaper to take the more expensive deal in the showroom at 15,000 miles per year.
Consider the following lease examples (assuming $.25 per mileage over penalties)
Chevy Cruze 1LT at $21,750 MSRP and 24 month terms
Monthly payment at 10k mileage: $124.38 (For 15k miles $143.69)
If you drive just 2k miles extra each year the avg. monthly payment (factoring penalty) is $166.05
GMC Sierra 1500 at $47,020 and 39 month terms
Monthly payment at 10k mileage: $474.44 (for 15k miles $512.09)
If you drive just 2k miles extra each year the avg. monthly payment (factoring penalty) is $516.11
Toyota Camry LE AT at $24,130 MSRP and 36 month terms
Monthly payment at 12k* mileage: $244.60 (for 18k miles $285.21)
If you drive just 2k miles extra each year the avg. monthly payment (factoring penalty) is $288.10
*Not offered at 10k mileage
In each case, it would be cheaper to take the highest mileage deal up front than to take the lowest mileage deal and have to pay additional mileage overage charges.
"Most people negotiate the lowest number of miles since it represents the smallest initial payment. However, with gas at just $2 gallon, more people are driving extra miles and paying more at the end of the lease in penalty fees," said Scot Hall, Executive Vice President of Swapalease.com.
Headquartered in Cincinnati, Ohio, Swapalease.com is the world’s largest automotive lease marketplace and the pioneer in facilitating lease transfers online. More specifically Swapalease.com matches individuals who want to get out of their lease with people who are looking for short-term lease agreements. Prospective buyers can search the listings for the exact vehicle they want, and then register for a nominal fee, allowing them to use Swapalease.com’s safe online system to contact the prospective seller and close the deal.
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