When leasing a car, one of the conditions is a mileage limit, so unlimited mileage isn’t something that’s typically offered. However, if you qualify for leasing, you may be able to get a high-mileage lease instead of the standard low-mileage lease.
Car Leasing Contract Mileage Limits
If you’re like many people, you may assume that leasing isn’t for you because you just drive too much. While it’s true that leased vehicles typically come with a base of 12,000 miles a year, the number of miles included in your lease is customizable. Because low-mileage leases are more common, people sometimes think that those are all that’s available.
In truth, adding more miles to your lease up front can save you money in the end. In fact, some lessors even allow lease contracts that cover 100,000 miles over 36 months. High-mileage leases differ from low-mileage leases in price, because those extra miles affect the residual value of the car.
A 36-month, 100,000-mile lease could end up costing more per month than buying the vehicle outright on a 60-month loan. However, once you’ve put 100,000 miles on a leased car, you can turn it in and walk away. If you were financing the same vehicle and wanted to turn it in at the end of three years, you would probably be facing negative equity – a loan amount that’s more than the car is worth.
Qualifying for a High-Mileage Lease with Bad Credit
When you have bad credit, it may be harder to qualify for a lease, especially if you’re considering a high-mileage one. The first step to leasing a vehicle with bad credit is to make sure that you’re prepared. Keep in mind that you’re required to make many up-front payments as a lessee.
These are known as lease inception fees, and they can include:
- First month’s lease payment
- One or more security deposits
- Acquisition fee
- Documentation fee
- Sales or use taxes (paid up front in some states)
- Registration fee
You may also be asked to make a down payment, which is known as a capitalized cost reduction in leasing, but this isn’t always needed. A cap cost reduction lowers your monthly payment, but doesn’t help you save money overall the way a down payment does for an auto loan.
Once you’re ready, you have to find a lessor that can work with bad credit, and not all of them do. The same is true for bad credit car buyers, with most requiring the help of a special group of lenders called subprime lenders.
Finding a Subprime Lender
In order to find the right lessor or lender for your bad credit situation, you have to understand that not all direct lenders or dealerships can work with bad credit borrowers. In order to make the process easier on yourself, let CarsDirect help.
We work with a nationwide network of special finance dealers that have the lenders available to help find the loan or lease deal you’re looking for. Fill out our quick and easy auto loan request form, and we’ll get to work matching you with a dealership in your area.