Is Leasing a Vehicle an Option at 25,000 miles/year?

Possible? Sure someone will take your money.

Cost effective? Nope.

You can lease it and prepay the extra miles at a slight discount. Or just pay the penalty at the end.

It's certainly "possible", but not gonna be offered by the manufacturer with those miles.

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Before you lynch me, this is a company vehicle purchase. For whatever reason, they want to investigate the option of leasing my next vehicle. I put 25,000 miles/year on the vehicle. Is that even a feasible option?

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As others have said, not cost effective - unless your business model - somehow - passes something like lease costs on to the customer, but can't pass capital expenses the same way (I'm spitballing - could be specified in a contract).

I can't believe the company's accountants don't encourage them to have a fleet purchase agreement - buy you the car new, take the capital expense deduction, then recapture the residual value in 3 to 5 years - that seems like the lowest cost per mile for a business, rather than a retail lease at retail rates.

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Coach Guidry

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Very possible.

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I respect your expert opinion, but what's his cost per mile going to be above 15k? 25 to 30 cents?

Probably more, right?

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They can pre-pay based on his average at 10 cents a mile.

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On the whole bucket of 25k? And is the standard 12k or 15k?

I'm wondering if they can maybe double dip that on taxes - they buy the car, they buy the gas, they do the maintenance, take the lease costs AND the actual costs per mile?

Depending on how many years they can get out of it - that starts to make sense.

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On the whole bucket of 25k? And is the standard 12k or 15k?

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You can get 15k. I am by no means positive on the complete benefits of leasing from a business standpoint but I do have clients leasing through a business for 25-30k miles a year.

Which manufacturer?