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Volvo_S60

36 months lease at 12,000 vs 10,000 miles: what is the difference in terms of monthly payments and residual value provided the mileage is within limit at the end of lease?
Is it beneficial to go for lower mileage?
Also, is the down payment taxable?

dps06

The residual value difference between 12,000 and 10,000 miles is generally 1%. So, on a $40,000 car, the residual value difference would be about $400.

The payment difference is going to depend on the length of the lease and interest rate on the lease. On a 36 month term with an average interest rate, the monthly payment difference would be roughly $15/month.

It is best to pay for the miles you will think you need, as it will cost you more to go over at the end of the lease then if you buy them upfront.

Down payment is generally taxable if it results in a cap cost reduction.

kyfdx

Volvo_S60 said:

36 months lease at 12,000 vs 10,000 miles: what is the difference in terms of monthly payments and residual value provided the mileage is within limit at the end of lease?
Is it beneficial to go for lower mileage?
Also, is the down payment taxable?

1% of MSRP is cheap for 6000 extra miles

Anything that results in a CAP reduction is generally subject to sales tax, whether it's money from you or a factory rebate.

This will vary, depending on your state.

Volvo_S60

if I buy out the car at the end of the lease then over mileage will not make a difference, in that case going for lower mileage will result in higher residual value by much? considering the monthly payments will be lower?

kyfdx

Volvo_S60 said:

if I buy out the car at the end of the lease then over mileage will not make a difference, in that case going for lower mileage will result in higher residual value by much? considering the monthly payments will be lower?

10K vs. 12K is 1% of MSRP.
On a $50K MSRP car, that will save about $14-$15/mo.

I wouldn't want to be forced into a buy out, to avoid an over-mileage charge. You are risking dollars to save pennies.