[yjbeach]

QUOTE (NT2SHBBY @ Jun 8 2010, 08:15 AM) index.php?act=findpost&pid=330838

The problem with high mileage leases is the depreciation which we all know our hyundai's suffer from without high mileage issues...the high mileage just compounds the issue

Knowing this, I think dealers/manufacturers might be apprehensive giving out high mileage leases knowing the car is basically worthless when it's flipped back at the end of the term.

Correct, they make a signifcant amount of money back on the penalties when turning the car back in.

Breaking things down financially. It's better to buy than to lease. When calculating out opportunity cost leasing a car for $300 a month with $3000 do at signing (3 year contract), you would have to make an annual salary of over $95,000 with no fees when turning the vehicle over.

When you purchase a vehicle (estimated at $25,000) with $3000 down and an average monthly payment of $400 a month and 4.5% interest ( and using a credit union that usually applies 70% to principal and 30% to interest). You will start to gain equity in the car which traded in after a 3 year run, will put you ahead.

There is a break down of this at www.fool.com a good website for beginner and moderate financial assistance.

 

[yjbeach]

I hope you do post back in 3 years and let us know your overall feelings and experience with the leasing option. I didn't want to go into too much detail but there is a way to get 70% towards the principal is to make 2 monthly payments early and then continue to keep making monthly payments like normal (almost like cheating the numbers).

I always advise people that do not make a large down payment to send in extra money for 2 years towards the principal balance of the car 1 day after making their monthly payment (they must indicate this on the memo line). This will decrease the total amount of interest paid on the car.

I am never a candidate for lease options because I put on about 15K-20K miles a year on a car.