I just finished up the second year of a 3-year lease on a 2006 Volvo S60. At the time I got into the vehicle, I was only driving 10K miles per year, so the 36K limit did not seem a problem.
But things change. I am now committed to a new commute for my childs sport that is going to put me way over my miles.
I was not thinking of buying the car, because I am worried about the cost of maintenance and repairs when the warranty is up. (Also, I would been hoping to get something w/better gas mileage). But the extra miles penalty is making me wonder if I should just do it. No matter what happens, I am going to end up spending more money than I would expected, and at least I will not be sitting here sweating every time I drive more than 250 miles in a week.
The bank that holds the lease has sent me a letter spelling out these options. I will not know what the terms of a purchase will be until I call them. Any advice on how to handle that call?
Just in case....the mileage on your lease is based on the entire term of the lease, not on a monthly or yearly basis. If when you are getting close to the end of the lease you can opt to trade the vehicle in early. Your appraisal will be affected by the mileage but you may be able to move out of the lease into a purchase with a smaller penalty than the mileage penalty on the end of the lease. Or you can just be prepared and put money back to pay for the penalties.
If you wait until you talk with Volvo near the end of your lease, know exactly what your vehicle's market value is, offer them what you are willing to pay and hope they might take you up on it. The residual value is going to be higher than the market value (most likely) so by knowing the value you can make a valid offer to them.
Whichever way you decide to go it is good you are thinking about this now instead of waiting for the "surprise" at the end of your lease.
〉 Answered on Aug 9th, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)