Leasing Miles Overage - Advice on next steps

[Crazychemist]

I have a 2024 R1T with 38,000 miles of the 45,000 allowed on my lease which still has 16 months left. I can buy out the lease or pay the overage for the miles driven @0.30/mile rate.

If I keep driving at my current rate I will go over by about 23,000 miles or $7,000.

If I buy out the lease just before 45,000 miles I’ll have to pay out about $6,700 for the lease plus $2,700 in taxes in addition to the residual value.

Then I either have to pay for a new lease or a car note.

My question is, am I missing something? Will there be additional charges for going over? Has anyone heard of buying extra miles(I haven’t seen this available).

Thanks in advance for the helpful comments.

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[anrb97]

I would check the lease contract again. Because mine says I can only go over by 10k miles from the ones I leased. If I go over the 10k miles they will do an assessment for degradation and charge accordingly. Basically if I go more than 10k anything above it could be charged at a higher rate.

 

[mkhuffman]

I think you can buy the truck for the residual value at the end of the lease, and you don't have to pay a penalty for going over on the miles. It's only when you return the truck to Rivian at the end of the lease that you have to pay for the excess miles.

 

[2kwik4u]

I think you can buy the truck for the residual value at the end of the lease, and you don't have to pay a penalty for going over on the miles. It's only when you return the truck to Rivian at the end of the lease that you have to pay for the excess miles.

That is how I read it as well, and how leases typically work. If you buy it out, then you don't pay a mileage penalty.

I'll have to reread the overage clause to check for @anrb97 comment. I didn't see that, but I didn't read it super deeply either.

@Crazychemist
I'm in a similar boat. Just crossed 38k miles, of the 45k I bought, and have 17mo left to go. Truck is already worth less than the residual value in the lease (on a trade, private party sell will be close), and with the mileage overage will generally be a "bad deal".

I bought a motorcycle to commute on, and will taking the wifes car a bit more this next year for around town stuff; hopefully that mitigaes a few miles. Then I'm just paying the penalty and walking away from it.

 

[2kwik4u]

I would check the lease contract again. Because mine says I can only go over by 10k miles from the ones I leased. If I go over the 10k miles they will do an assessment for degradation and charge accordingly. Basically if I go more than 10k anything above it could be charged at a higher rate.

I can't find that in my contract. I'm in NY, what state are you in. Maybe it's state specific?

Here's section 34

34. EXCESS WEAR AND USE.You will not subject the Vehicle to more than normal wear and use. If you do not purchase the Vehicle, at the end of the Lease Term you will owe us for excess mileage under Section 13, plus our actual or estimated cost to repair or replace any excess wear and use to the Vehicle, whether or not we make repairs. We will total the costs of items (a) through (f), as follows, and you will owe us any portion of the total in excess of costs expected based on normal wear and use, plus the other amounts set forth at the end of this Section: (a) holes, tears, burns, stains, strong odors or excessively worn areas in the carpet, other interior surfaces or convertible top; (b) scratches, chips, dents, pits, rust, holes or cracks in the wheels or exterior surfaces, windshield or other glass surfaces or metal work; (c) cracked, broken or missing windows, doors, lights, trim, mirrors or antennae; (d) missing, damaged or nonworking mechanical equipment, safety or emissions control equipment, electrical or other parts or accessories; (e) damage to the Vehicle’s frame or alignment; (f) damage due to improper, poor quality or incomplete repairs or paint work. You also will remain liable to us for the full cost of any such items resulting from intentional or willful abuse or misuse. In addition, you will owe us the full cost of any missing, damaged or mismatched tires (including spare), any tire that has less than 1/8th inch tread at its lowest point or that is not comparable in quality to the original equipment, and any missing manual or missing or nonworking keys or remote entry devices.

Here's section 13

13. Excessive Wear and Use. You may be charged for excessive wear based on our standards for normal use, and for mileage in excess of miles per year during the scheduled Lease Term at the rate of 30 cents per mile.

 

[mkhuffman]

I can't find that in my contract. I'm in NY, what state are you in. Maybe it's state specific?

Here's section 34



Here's section 13

If they handle lease returns of the R1 like they handled my trade in, they won't even look at it. They literally loaded my Mach-e on the truck to take it away as I was still at the Service Center taking delivery. There was no inspection at all.

I was freaking out because of all the modifications I made to the car. The list was really long, including a volume control I put on the pedestrian speaker. I was most worried about that one. I really should not have worried!

 

[2kwik4u]

If they handle lease returns of the R1 like they handled my trade in, they won't even look at it. They literally loaded my Mach-e on the truck to take it away as I was still at the Service Center taking delivery. There was no inspection at all.

I was freaking out because of all the modifications I made to the car. The list was really long, including a volume control I put on the pedestrian speaker. I was most worried about that one. I really should not have worried!

Did the same thing on my Q7. Never even looked at it.

 

[Time2Roll]

There is no wear, mileage or damages charge if you buy out the vehicle. Only that you must live with what ever has been done to it.

The real question is if the vehicle has been reliable and still brings you enough joy to keep driving it.

 

[Crazychemist]

Thanks for the feedback. I do love the truck and want to keep it or get a new R1T. My only hesitation with keeping the current R1T is its a Gen 1 and support is already reduced vs current models.

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