Jerry Reynolds, host of The Car Pro Show on Dallas stations WBAP and KRLD, highlights a remarkable story from Wisconsin that offers valuable insights for car shoppers in Texas. A rideshare driver returned a leased Toyota Camry after accumulating an astonishing 223,000 miles over three years. This case underscores the importance of understanding lease agreements and the options available at lease-end.
Understanding Lease Agreements
Most vehicle leases are structured for annual mileage between 10,000 and 15,000 miles, with high-mileage leases typically capping at 20,000 miles per year. Exceeding these limits usually results in penalties ranging from 20 to 30 cents per mile. However, the Wisconsin driver avoided these hefty penalties by opting for a lease buyout at the end of the term. The dealer offered to purchase the Camry back for slightly less than the residual value, allowing the driver to pay the difference and avoid mileage penalties.
The Resilience of the Toyota Camry
The vehicle in question, a Toyota Camry SE, is a midsize family sedan, not typically associated with high-mileage endurance. Yet, it managed to maintain value after 223,000 miles, highlighting the reliability of modern vehicles, particularly Toyota sedans often used in rideshare services. This resilience also reflects the strong resale value of Toyotas and the robust used car market.
Lessons for Texas Drivers
While this story is an extreme example, it serves as a reminder for Texans to carefully consider their lease-end options. During the pandemic, many consumers found themselves with positive equity in leased vehicles due to skyrocketing used car prices. This scenario, though rare historically, continues to occur. Before returning a leased vehicle, it’s crucial to compare the residual buyout price with the actual market value, as your vehicle might be worth more than expected.
For those driving extensive miles, like 75,000 annually, leasing might not be the best option. Such drivers should consider purchasing a vehicle outright and investing in a fuel card, a reliable mechanic, and perhaps a chiropractor.
Original reporting: The Dallas Express — read the source article.
