Another warranty question

[Andrew Tollison 3]

I have 350 miles left on my warranty and I am going to buy an extended warranty today and was wondering what do i need to do if I am leasing? i dont plan on trading it in so that is why i am wanting to extended warranty.

 

[Thomas Rogers]

Q: Your keeping the vehicle when it goes off lease?



I assume the only reason you would do that is because you are WAY over miles?



The residual on the STs and regular Explorers are very high, that's why I ask. If you aren't over miles, its probably cheaper for you to turn it in, then buy a used with with potentially less miles at a lower price.



Something to consider, if you aren't WAY over the miles allotment.



TJR

 

[Andrew Tollison 3]

not sure if i am over the miles on the lease, my wife leased it before we got married. Not sure how long the lease is. I dont want to get rid of it, i love my ST.

 

[Thomas Rogers]

Before you pull the trigger, Andrew, hit the used car lots see if you can get the SAME year or newer vehicle for less than the buy-back price of your lease.



It wouldn't surprise me if you could.



TJR

 

[Mark Smith]

But lovin YOUR ST is a special thing,:wub: getting a different ST to love is like getting a new wife.:wacko:



MS

 

[Andrew Tollison 3]

The wife said we are over the mileage if we were to trade it in, it has almost 36000 miles. She was telling me that the lease says we can only put 12000 miles a year on it. We have had it 2 years and have put 18,000 a year on it.

 

[Thomas Rogers]

Sounds like you have one year left on the lease, and expect to have about 54K miles on her, which would be 18K over. I assume you got about a 15¢ a mile overage charge...which comes out to $2700.



So, figure out what your buy-back amount is. Subtract from that $2700...and whatever that amount is IF you can get a different ST that is same year, same miles significantly cheaper than that, I would...especially if you can get one at that price that is new or with fewer miles.



Look around.



As for the warranty, given that you vehicle will have about 54k miles IF you plan to keep it much longer after that, which I assume is a given since you will be buying it back, then go for it.



However, I can't stress this enough, the economics of keeping a leased vehicle, even when paying close to $3K in mileage overage, rarely works in ones favor vs just rolling over into another lease, or turning in and buying new or used.



TJR