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  • Feb 28th, 2018 2:48 pm
[OP]
Jr. Member
Jun 4, 2015
142 posts
123 upvotes
Ottawa, ON

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Last edited by topcheese on Dec 31st, 2020 12:47 pm, edited 1 time in total.
11 replies
Deal Expert
Aug 22, 2011
35645 posts
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Center of Universe
Where are you going to find a lease that offers enough mileage; for your needs?
Deal Fanatic
Jan 15, 2004
6592 posts
1138 upvotes
Lease probably doesn't make sense for you because you need 30k a year. Most lease have anywhere from 12k-24k kms a year included. Anything above would incur extra charge (usually pretty expensive). You should find out the cost of the extra mileage for the car you want.
Deal Expert
User avatar
Jul 30, 2007
29353 posts
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Toronto
if you lease and pre-negotiate for the excess mileage, then perhaps you may end up paying between 10 - 12 cents per km, instead of say 15 cents per km. Therefore, say the lease is up to 24,000km per year and you need 30,000km per year, then the excess mileage cost is = $0.12 * 6,000km * 3 yrs * 1.13 = $2440 for the 3 yr lease term. You will also may have to factor in added wear & tear costs on the car, like tires and brakes and additional oil changes. As you know, typical factory warranty will cover up to 60,000km and you may need to buy extended warranty to cover the other 30,000km, if not, you may be liable to pay for any (expired warranty) repairs. Based on what I have mentioned, you can easily see there are probably near $2000 - $3000 on top.
[OP]
Jr. Member
Jun 4, 2015
142 posts
123 upvotes
Ottawa, ON
golden wrote: Lease probably doesn't make sense for you because you need 30k a year. Most lease have anywhere from 12k-24k kms a year included. Anything above would incur extra charge (usually pretty expensive). You should find out the cost of the extra mileage for the car you want.
Most dealerships I’m in contact with are offering extra km at .12c/km if I pay in advance. $2160 over 36 months, or $60 a month
[OP]
Jr. Member
Jun 4, 2015
142 posts
123 upvotes
Ottawa, ON
booblehead wrote: if you lease and pre-negotiate for the excess mileage, then perhaps you may end up paying between 10 - 12 cents per km, instead of say 15 cents per km. Therefore, say the lease is up to 24,000km per year and you need 30,000km per year, then the excess mileage cost is = $0.12 * 6,000km * 3 yrs * 1.13 = $2440 for the 3 yr lease term. You will also may have to factor in added wear & tear costs on the car, like tires and brakes and additional oil changes. As you know, typical factory warranty will cover up to 60,000km and you may need to buy extended warranty to cover the other 30,000km, if not, you may be liable to pay for any (expired warranty) repairs. Based on what I have mentioned, you can easily see there are probably near $2000 - $3000 on top.
Totally — I am only going to be in this job for 24 months top before I move back to my small city living style, so
A) don’t want to be stuck financing a car with high mileage
B) Hoping that leasing will allow me to take advantage of any tax breaks
Sr. Member
User avatar
Jun 20, 2015
647 posts
174 upvotes
Place
Mileage is not the only thing you have to keep an eye for when leasing a vehicle.
I know some dealerships are stickler for wear and tear condition, and maintenance history of the vehicle as well.

Based on your situation, Leasing maybe a good path for you to take. Hopefully you get a great deal as well!
Good luck!
Deal Addict
Oct 30, 2006
2158 posts
829 upvotes
GTA
There is no tax advantage to leasing. If you buy you claim CCA. Leasing just makes it easier, lazy accountants (I'm not one of them) prefer thsi as they can just take the payment and work out the work vs. personal mileage. Owning the car you need to calculate CCA and the interest expense on the loan, then do work vs. personal mileage.

but to add, if you will be doing 30K KM for 2 years, how much in year 3? if less you might not need to buy additional KM's?
Deal Addict
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Sep 9, 2012
4462 posts
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Oakville, ON
topcheese wrote: Hi all,

I was always very much a “financing” guy until I moved to GTA for my new job.
I am on the road all day, and on average I drive 30,000km a year.

I need a new car, and I would hate to buy something just to put on 100k/km in 3 years.

I just found out with my job I’m issued a T2200 which I hear can help me from a tax perspective if I lease.(same form a business owner uses)

Financially, does it make more sense for me to do a 36mth lease, leverage this tax incentive and put the miles on someone else’s car?
The miles go onto their car - yes, but at your expense. You’re still paying for the mileage you put on one way or they other.
Deal Guru
User avatar
Jul 12, 2003
11744 posts
4050 upvotes
Toronto
How about sublease a car from leasebuster.
Search for those who leave tons of KM to drive. Unless you must to drive a brand new car.

Just throwing in an idea if KM is your concern for a lease.
Retired Forum Moderator February 2009 - June 2015
Deal Fanatic
User avatar
Jul 26, 2007
5502 posts
3020 upvotes
Toronto
What is wrong with owning a car with high mileage that you incurred?

When buying a used car, everyone tend to avoid high mileage car because only one reason, unknown driving method of the previous owner. Once 90% highway mileage and granny driver is disclosed, buying gets better. If this is your only reason then sure, lease your next car.

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