high mileage driver lease vs buy?

1,070 Views | 12 Replies | Last: 8 days ago by agracer
Aggie95
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2:48p, 9/7/25
AG
I have had a company car for 20+ years but A job change will likely lead to a move to an allowance. I anticipate driving 25k-35k miles per year.

I just can't imagine buying (financing) a new car and not ending up in a massive negative equity scenario.

so I'm torn between buying a 2020-ish vehicle and anticipating doing this every 2 to 3 years…vs looking into a high mileage lease.

Thoughts? Anyone in similar situation?
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mm98
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4:41p, 9/7/25
AG
Any restrictions on age with your allowance?
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Aggie95
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In reply to mm98 • 4:44p, 9/7/25
AG
mm98 said:
Any restrictions on age with your allowance?


Not sure yet, but that will also be a factor. I know some restrict it to within 4 model years
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bam02
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4:53p, 9/7/25
AG
You probably just get a slightly lower rate of reimbursement if you have an older vehicle. I would say the smart thing is to still drive an older, highly reliable vehicle if you're gonna put on that many miles.

Lexus.
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mm98
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In reply to Aggie95 • 4:55p, 9/7/25
AG
I'd say that's a large unknown making it really hard to answer your question.

Our company had 7 years, and then when prices soared we adjusted to 10 years so long as the vehicle presentable for the job.




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FunnyFarm14
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11:42p, 9/7/25
AG
So... 30,000 miles / year.
Why can't you keep the car 6-7 years? Even if you financed a 0 down, 72 month term (puke) most new cars will go that far & then some as long as you take care of them (or farther depending on where your appetite is for R&M cost)

I've taken several F150's to 200k, 2x F350's to 300k, all with nothing more than minimal repairs & routine maintenance.

My sister-in-law took her corolla to near 350k before getting rid of it and I'm pretty sure she thought the only time you needed tires was when they blew out if that tells you anything about her maintenance skills.

I currently have 6 oilfield pumpers in 2020+ F150's. All running 100-150k miles. We'll keep the trucks until they need replaced. We're actually in a negative equity situation here but the alternative is my guys don't work.... So there's that.

No reason in my mind a vehicle can't last, or you end up in a huge negative equity situation. Buy slightly used and take care of it, and scrap the "100,000 miles my car is dead" mantra from the 1960's.
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JamesPShelley
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In reply to Aggie95 • 7:40a, 9/8/25
Aggie95 said:
I have had a company car for 20+ years but A job change will likely lead to a move to an allowance. I anticipate driving 25k-35k miles per year.

I just can't imagine buying (financing) a new car and not ending up in a massive negative equity scenario.

so I'm torn between buying a 2020-ish vehicle and anticipating doing this every 2 to 3 years…vs looking into a high mileage lease.

Thoughts? Anyone in similar situation?

The 25Kto 39 K a year should be a no-brainer. Not happening.

Equity? It's not an investment vehicle. No pun intended.

Why do you need a new (used) car every 2-3 years? The Jones?
Just buy a new Hyundai and get another one in 100,000 miles/10 years.No brainer.
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Aggie95
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In reply to JamesPShelley • 9:26a, 9/8/25
AG
The reason for the every few years was based on my most recent experience with a vehicle allowance being a maximum of 4 years behind current model, so that would be a 2022 model. If I bought a 2024 model I could only drive it for 2 years when the 2028's come out
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htxag09
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In reply to Aggie95 • 10:08a, 9/8/25
AG
Aggie95 said:
The reason for the every few years was based on my most recent experience with a vehicle allowance being a maximum of 4 years behind current model, so that would be a 2022 model. If I bought a 2024 model I could only drive it for 2 years when the 2028's come out

Yeah, this is pretty standard but not necessarily the default.

Are the 25-35k miles per year personal or work? If work, do you also get to expense mileage or just fuel?

Honestly didn't even know 35k mile leases were a thing. Can't imagine them being price effective....they're going to make you take that hit on depreciation, not them.
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mm98
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11:22a, 9/8/25
AG
In my industry 4yr caps are not the norm

It's usually much longer so long as the vehicle is presentable. Or a plan where the employee is paid via a program like Runzheimer, and the monthly payment depreciation sort of matches your vehicle depreciation
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HollywoodBQ
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In reply to Aggie95 • 11:36a, 9/8/25
AG
Aggie95 said:
The reason for the every few years was based on my most recent experience with a vehicle allowance being a maximum of 4 years behind current model, so that would be a 2022 model. If I bought a 2024 model I could only drive it for 2 years when the 2028's come out

Interesting.

At my old company (back when we used to go visit customers in person - last decade), there was no age limit on the vehicle but there was a requirement that it be 4-doors.

Probably not an issue for you getting something with 4-doors versus some kind of 2-door sports cars that Sales Reps love.
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Corps_Ag12
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In reply to Aggie95 • 12:39p, 9/8/25
AG
Aggie95 said:
The reason for the every few years was based on my most recent experience with a vehicle allowance being a maximum of 4 years behind current model, so that would be a 2022 model. If I bought a 2024 model I could only drive it for 2 years when the 2028's come out


This sounds like something you need to confirm before accepting a job, as well as the amount you're going to be reimbursed. I'd also ask about their insurance and make sure it covers "any auto" and not just "any owned auto" because you don't want to be excluded from their policy while you're on their time and get in a wreck.
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agracer
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In reply to Aggie95 • 11:54a, 9/10/25
AG
How would you end up with negative equity if your new company is giving you an allowance?
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