Car Buying Tips Guide 1

(Barry) #1

you buy it out or sell it retail. TIP: You only pay a mileage penalty if you turn in the car—not if^


If you need more than 15,000 miles per year, it is usually cheaper to buymiles “up front” (at lease inception). They typically cost 10-12 cents per
mile at the beginning of a lease; if you go over the allowed mileage, thepenalties are more usually 15-25 cents.


annual mileages.TIP: Leases can be especially good for people who drive high^


It can be very hard to resell a three to year old car with 60,000 miles on it.But since many lease companies allow contracts to be written up to 18,000-
20,000 miles per year (sometimes more), the challenges of remarketing ahigh mileage car can be passed on to the lessor. I lease cars to lots of


realtors; we usually build up a 20,000-mile per year lease, and “buy” theextra miles up front. They get a fresh car every three years, some extra tax (^)
deductions and don’t mess with trying to sell it themselves.
WEAR AND TEAR

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