![]() ![]() In the U.S., the average cost is between 5 to 20 cents per mile over. If the lessee exceeds this limit, there will be a penalty charge per mile over the limit when the lease ends. In the U.S., standard auto leases generally allow annual mileage limits of 10,000 to 15,000, with most coming in at 12,000. Most leases will have a mileage cap, which is the maximum number of miles the car can be driven during the life of the lease. Therefore, auto leases tend to be more affordable for slowly-depreciating vehicles because they hold their residual values well. The difference between the price of the car minus residual value will result in the depreciation of the car after a lease, which is amortized throughout the lease loan. It is an estimation of the worth of the car at the end of the lease period. Financial institutions that issue lease contracts, not the dealers, set residual values on vehicles. In essence, the residual value of a car is the amount it can be bought for at the end of the lease. ![]()
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