Buying next car early to avoid mileage charge on lease
Discussion
Hello,
I have 4.5 months left on my Fiesta lease (2 May 2020), and I'm approaching the mileage limit - I'm about 1000 miles off now. I am 100% guaranteed to exceed the 37,500 limit.
By my estimations, by 2 May, I will be at approx 41,000 miles at the current rate. Now I am trying to use the car less but I'd rather be conservative, so that would be 3500 miles over the limit.
This would equate to a £438 fee.
I will be buying a car in April to replace the current one. I'm trying to determine whether it makes any sense to buy the next car early and stop using my Fiesta completely, to avoid the fee. There are enough costs with returning the car as it is...
Can anyone suggest what I should think about in weighing this up?
Because I'm aware that there will be expenses to running two cars for example insurance and tax. In fact I don't even know where to start with insuring a second car to be honest.
Any help is great, thank you.
I have 4.5 months left on my Fiesta lease (2 May 2020), and I'm approaching the mileage limit - I'm about 1000 miles off now. I am 100% guaranteed to exceed the 37,500 limit.
By my estimations, by 2 May, I will be at approx 41,000 miles at the current rate. Now I am trying to use the car less but I'd rather be conservative, so that would be 3500 miles over the limit.
This would equate to a £438 fee.
I will be buying a car in April to replace the current one. I'm trying to determine whether it makes any sense to buy the next car early and stop using my Fiesta completely, to avoid the fee. There are enough costs with returning the car as it is...
Can anyone suggest what I should think about in weighing this up?
Because I'm aware that there will be expenses to running two cars for example insurance and tax. In fact I don't even know where to start with insuring a second car to be honest.
Any help is great, thank you.
treeroy said:
Hello,
I have 4.5 months left on my Fiesta lease (2 May 2020), and I'm approaching the mileage limit - I'm about 1000 miles off now. I am 100% guaranteed to exceed the 37,500 limit.
By my estimations, by 2 May, I will be at approx 41,000 miles at the current rate. Now I am trying to use the car less but I'd rather be conservative, so that would be 3500 miles over the limit.
This would equate to a £438 fee.
I will be buying a car in April to replace the current one. I'm trying to determine whether it makes any sense to buy the next car early and stop using my Fiesta completely, to avoid the fee. There are enough costs with returning the car as it is...
Can anyone suggest what I should think about in weighing this up?
Because I'm aware that there will be expenses to running two cars for example insurance and tax. In fact I don't even know where to start with insuring a second car to be honest.
Any help is great, thank you.
If you're going to stop using it completely then arrange for an early termination. Most companies only want 55% of the remaining payments and you wount have to insure 2 cars.I have 4.5 months left on my Fiesta lease (2 May 2020), and I'm approaching the mileage limit - I'm about 1000 miles off now. I am 100% guaranteed to exceed the 37,500 limit.
By my estimations, by 2 May, I will be at approx 41,000 miles at the current rate. Now I am trying to use the car less but I'd rather be conservative, so that would be 3500 miles over the limit.
This would equate to a £438 fee.
I will be buying a car in April to replace the current one. I'm trying to determine whether it makes any sense to buy the next car early and stop using my Fiesta completely, to avoid the fee. There are enough costs with returning the car as it is...
Can anyone suggest what I should think about in weighing this up?
Because I'm aware that there will be expenses to running two cars for example insurance and tax. In fact I don't even know where to start with insuring a second car to be honest.
Any help is great, thank you.
rudester said:
If you're going to stop using it completely then arrange for an early termination. Most companies only want 55% of the remaining payments and you wount have to insure 2 cars.
But won't they pro-rata the mileage allowance for an early termination? Then you'd still be over 
Just ask for an early termination quote and go from there.
The cost of insuring another car (some IC will mirror your existing NCB) and taxing may be more than paying for early termination.
Also be careful with what they charge you on collection.
There are guidelines to what is acceptable wear and tear etc..
And it's surprising what is acceptable.
The cost of insuring another car (some IC will mirror your existing NCB) and taxing may be more than paying for early termination.
Also be careful with what they charge you on collection.
There are guidelines to what is acceptable wear and tear etc..
And it's surprising what is acceptable.
rooflesstyrant said:
£438 vs the insurance, tax, maintenance and deprecation on another car over 4.5 months and 4500 miles.
I would probably pay the £438.
Will the lease car need another service before you hand it back? That could influence me in to handing it back early.
It needs a service and its first MOT, but they're included in the lease so not relevant :-) I would probably pay the £438.
Will the lease car need another service before you hand it back? That could influence me in to handing it back early.
I'm wondering how much it would cost to insure an extra car for a few months. If I can add it to my policy it may not be that much..? I don't know.
Tax would be less than £100 and no depreciation as I only intend on buying an old banger type car as my next car - i have no desire for another new car.
Yes you can terminate lease early.
I did it on my Leaf last year and think paid 50ish% of the remaining payments plus some additional mileage and a small amount for a tiny dent on the boot.
OP - it works out pretty expensive insuring short term.
Easy to get a quote online.
Juts get figures for all the options and then make a decision.
I did it on my Leaf last year and think paid 50ish% of the remaining payments plus some additional mileage and a small amount for a tiny dent on the boot.
OP - it works out pretty expensive insuring short term.
Easy to get a quote online.
Juts get figures for all the options and then make a decision.
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