# Extra Mileage & Lease Calc



## GimpyMcFarlan (Aug 13, 2002)

Jon,
I have a question regard how extra mileage is entered into the lease calculation. I've created an Excel spreadsheet based on the lease calculation methodology that you have posted in prior discussions. It has been very helpful in allowing me to see the affect of different combos of capital reduction and multiple security deposits. Thank you again for providing this! :thumbup:

Where does the purchase of extra miles above and beyond the "standard" 15K per year get entered into the equation? Does it get added to the selling price of the car after the luxury tax is calculated? :dunno:


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## Jon Shafer (Dec 15, 2001)

Recall our previous discussion regarding the components
of a lease payment (monthly depreciation, monthly rent, and
tax). Monthly depreciation is directly related to mileage;
more miles driven = greater depreciation. Up front
mileage is charged at the rate of $.15/mile.

So here's what you do: calculate thr residual at 15,000
miles per year, and then reduce it by the appropriate amount.
For example, if you want 18,000 mi/yr for a 3 year lease,
thats 3,000 extra miles per year times 3 years (9,000 
"extra" miles for the lease term). Now multiply
9,000 time $.15, and that product is $1,350.00.

Simply adjust your residual downward by that amount.

:thumbup: 

Remember, you get a refund for unused extra
miles "purchased" up front!


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## GimpyMcFarlan (Aug 13, 2002)

*Oh great one...*

...I'm not worthy. 

Bingo! Thank you Jon. That did the trick. My calculation is now within a few dollars of what the sales manager showed me on his magical computer. :thumbup:

For anyone that is interested, attached is the Excel spreadsheet (with generic info) in a Zip file. I hope it helps others out there. :dunno:


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