Leases are red-hot these days, but those signing up for temporary ownership of their rides will be facing lower mileage caps in exchange for low payments.
According to Experian Automotive, 31 percent of all U.S. new-car sales during Q1 2015 were leases, CarsDirect writes, with monthly payments entering the sub-$150 range for small cars after paying $1,999 at signing, $199/mo. for midsize models upon cutting a check for the same amount at the dealership.
However, those deals are coming with a price: in order to keep residual values healthy, annual mileage cap are being trimmed.
The publication looked over the mileage caps of 300 leases, finding the average cap figure came to 10,900 miles per year; Edmunds adds caps have fallen below 11,000 miles/year for the first time ever in Q1 2015. One lease advertised by General Motors dropped the cap from 12,000 miles/year in 2014, to 10,000 miles this year, with the now-extra 2,000 miles amounting to $1,500 for a three-year agreement plus an overage fee of 25 cents/mile.
CarsDirect says concerns over caps aren’t a new thing, akin to data caps on smartphone plans, but adds consumers should keep the new lower caps in mind, lest they end up spending more money than originally thought.
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