Excess Mileage On Rx 350 Lease

[GSY]

Hello,

I leased a 2009 RX 350 in October 2008 for 12,000 miles per year over 4 years. I have always leased Fords with this setup and had no problem but I now switched to Lexus and will never go back.

It's now 9 months later and I already have 14,000 miles on the vehicle. My work and personal routine changed drastically which accounts for the excess mileage and it is not expected to change.

My feeling is to just ride out the lease and then negotiate with the dealer at the end of the term with the proposition that they excuse the excess the mileage and I'll lease from them again, otherwise I'll go to another dealer, get a BMW, etc. etc.

Does anyone have any ideas as to what I should I do? Should I stick to my plan, renegotiate the lease for more miles? Anything else?

Thank you all in advance for any advise.

GSY

[RX in NC]

I would not contact the dealership/leasing company at this point. Your circumstances could change significantly again during the more than three years that you have left on your lease. However, I would never lease a vehicle without having another vehicle available to me. That is strictly due to the mileage cap that all leased vehicles come with. That cap is negotiable, but you may not be willing to pay the price of bumping up your mileage limit. We leased a vehicle 20 years ago primarily as a business experiment for me, and I'll never do it again. Even though we had four or five vehicles in our household at that time, I did not like the mileage restriction that came with the lease (12,000 miles per year). I made sure that we never exceeded it, but I did not like being confined by it....

If you choose to lease again, make sure you have a second vehicle available to share the mileage load. Or, be willing to pay to up the mileage restriction to cover your needs....

[SW03ES]

I would contact them and see if you can make an adjustement and re-cast the payments for a higher mileage rate.

Its a question of whether you want to pay the overage in the payments or upfront. I've done a lot of calculations and as far as I can tell, the difference is usually moot. I drive about 20k miles per year, and I've done the calculation from 12k to 20k and 15k to 20k, and all the leases if you add up the difference in payments vs paying the mileage overage at the end its roughly the same. Difference is if you lease for business the mileage overage is a penalty and penalties are not tax deductible, the higher payment for the mileage is.

I agree with RX though, I like leasing for business but when you do that you need to think of the vehicle as a business vehicle and have another vehicle for personal use.

[GSY]

thank you both for the replies. It is in fact a business leased vehicle and that is why we lease. (small family business)

I don't have access to another vehicle so my inclination is to get tough with the dealer next time and tell him I'll only take out two more vehicles (my wife will be due at that time as well) unless they eat the excess miles on this car.

Thanks again and enjoy the weekend.

G

I would contact them and see if you can make an adjustement and re-cast the payments for a higher mileage rate.

Its a question of whether you want to pay the overage in the payments or upfront. I've done a lot of calculations and as far as I can tell, the difference is usually moot. I drive about 20k miles per year, and I've done the calculation from 12k to 20k and 15k to 20k, and all the leases if you add up the difference in payments vs paying the mileage overage at the end its roughly the same. Difference is if you lease for business the mileage overage is a penalty and penalties are not tax deductible, the higher payment for the mileage is.

I agree with RX though, I like leasing for business but when you do that you need to think of the vehicle as a business vehicle and have another vehicle for personal use.

[SW03ES]

Whats the per mile charge for overage?

[GSY]

I have to check my contract but it's probably about 15 cents per mile.

Whats the per mile charge for overage?