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Last Post 02/20/2007 10:47 PM by  Fishhead
Total vehicle miles driven during 2005
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strayycats
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01/13/2007 2:07 AM
    I'm new to the game, hoping like everyone else that 07 turns out to be a profitable year.  Just interested in how many miles people ended up logging during 2005.
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    sbeau4014
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    01/13/2007 9:54 AM
    You are refering to 05 vs 06 right?
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    strayycats
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    01/13/2007 10:15 AM
    no, i know that 06 was a bad year for storms and travelling, so i'm just looking for a top end mileage.  i'm considering leasing and i am just wondering how many miles i might possibly rack up.  06 mileage would be a good comparison though, so if anyone knows those two numbers, it would be great to have the additional info.
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    katadj
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    01/13/2007 12:50 PM
    http://www.leaseguide.com/lease06.htm

    Check here before leasing.
    "Anyone who has never made a mistake has never tried anything new... Albert Einstein"
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    wtxj
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    01/15/2007 9:25 AM
    Dustin, really depends on where you live. I put about 10,000 a year when I'm out for 5 months or so. Friend of mine lives in the NW, he may drive 4,500 just to get to south Florida. That 10,000 is just business miles, not total for the year. I have never leased anything, just don't believe in the .25 cents a mile after 12,000. It adds up quick.
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    aporco
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    01/15/2007 7:58 PM
    Dustin - Trust me on this one. DO NOT LEASE!!!
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    strayycats
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    01/15/2007 11:03 PM
    That was my first thought too, but then i started doing numbers... Imagine that you currenty make a car payment of 600 bucks for 60 months. Given that most of us probably will drive about 30k miles in an average year, that car that you are purchasing will have 150k miles on it at the end of your purchase term. So, basically worthless to sell or drive cross country. Now, imagine that you get called out on another storm. How much longer do you actually feel smart driving a high mileage vehicle cross-country, where everything that goes wrong with it is covered by no one but yourself? I would hate to be in that position. I'm considering leasing because i can make the same payment, and drive 30k miles per year on the lease contract. The dealer remains responsible for all warranty and repair service all the way to the end of the lease term. As long as my payment stays the same, it seems to be a smarter option.

    Basically, if i purchase, i'll end up getting another one in 5 years. If i lease, i'll end up getting another one every couple of years, but won't have to worry about any issues related to roadworthiness. Guys, this is a fantastic excuse to tell your wives that you need that new SUV!
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    dcmarlin
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    01/15/2007 11:47 PM
    Dustin,

    You may want to look into the possibility renting a vehicle from a place like Enterprise just for the times that you are deployed.  If you have another vehicle at home, this may be a viable option.  You will usually get a near new vehicle and have no worries about maintenance or mileage.  When you are done with the rental, just hand them the keys.  Of course, there are some downsides and you may be limited on the type of vehicle available at the time but, depending on your circumstances, it is an option that could beat leasing.
    Gimme a bottle of anything and a glazed donut ... to go! (DLR)
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    strayycats
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    01/16/2007 12:26 AM
    that is an interesting thought. thanks for the input.
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    wtxj
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    01/16/2007 12:22 PM
    30,000 miles on a lease contract, the car guys must really need to move some SUV's for sure. I have never lease anything, so anyone on the board ever done this. Let's hear any good or bad.
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    JimGary
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    01/16/2007 8:56 PM
    I don't think anyone who has ever worked at a total loss unit would ever consider a lease or the dealership version like the GM "Smart Buy"(basically a balloon note). I have seen way to many folks upside down to even consider a lease. I would also not consider a 60 month note, if I cannot afford what I want in 36 months then I lower my standard and get what I can afford. Many people are suprised to see me pull a 13 ft ladder out of a Toyota Corrolla, but at $16k and 37mpg, its hard to beat. A $40K pickup would be nice, but the $24K difference in my bank is nicer.

    If your worried about the value or stability of your vehicle with 150k miles, then you should look at a vehicle that can endure the higher mileage. Most vehicles today can easily go 150-200k miles with proper maintanence. For intance I have a Honda Accord with 186K miles, a Jeep Wrangler with 138K miles, my last Dodge PU had 153K when I sold it, All well maintained, solid vehices.(I drove the Jeep to Pascagoula Ms, after Katrina)

    Your vehicle will be worth the same after 150K miles, whether you lease or buy, on the lease you will just have a lower end residual than if you drive the 12K a year average. Also at the end of the lease you are basically force to trade vehicles. If you buy its yours, keep it, trade it, set it in the back yardand plant flowers around it if you want, its yours. (Hey I'm an old auto adjuster, I've seen it done)

    Everyones situation is different, This is just my personal take on leases.

    JWG
    I know the voices aren't real, but sometimes they're right!
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    Tom Rongstad
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    01/17/2007 10:01 AM

    Deleted

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    Tom Toll
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    01/17/2007 10:43 AM
    We purchased an 05 Ram Hemi in 05 during the Florida work. It is a  Larimie, which is the high end Hemi, because it had set on the dealer lot for 5 months. They sold it below their cost, just to get rid of it. That saved us, with the promotions in place, just over $14,000.00 We always get  a good deal by taking our time and shopping around. Janice had to rent an SUV while working her claims while I drove our 99 Ram. The Ram had almost 200,000 miles on it, but ran good, still does. We kept the 99 as it was not worth anything on trade. We use it while working claims in AR and use the 05. The 05 now has a little over 40,000 miles on it, with no problems. If a vehicle is taken care of properly, you can get 500,000 miles out of it, I know, I have done it. I would not consider getting a lease vehicle as adjusters put too many miles on a unit in a busy season.

    We always save money back for a vehicle purchase so we can pay cash for it, as credit eats your profit up.This is one of the most expensive items an adjuster must buy, so select one that you feel will last a long time, with proper maintenance. Select one you are comfortable in, as most of your time will be spent driving it.
    Success is not final, failure is not fatal: it is the courage to continue that counts.
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    katadj
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    01/17/2007 2:28 PM

    Well Tom has the milage thing correct, as usual, as My past three (3) GMC Suburbans have given me 225-275K Each.
    Only traded up cause i wanted a newer rig. And I always buy a 2 yr old vehicle.

    Leasing is a very interesting way to go, and in the past I have done this for over 10 years. BUT, it depends on the type of lease you want. There are "Open -End Leases"
    What does it Mean? A rental agreement that obliges the lessee (the person making periodic lease payments) to purchase the leased asset at the end of the agreement. Also called a "finance lease".
     
    Investopedia Says... Since the lessee must purchase the leased asset upon lease expiration, that person bears the risk that the asset depreciates more than was expected by the end of the lease. Of course, at the same time, the lessee stands to realize a gain if the asset depreciates less than expected.

    Open-end leases are used primarily for commercial business leasing. In this case the lessee, not the leasing company, takes all the financial risks, which is not so much a problem for a business, since the cost can be expensed. Annual mileage on a business lease is usually much greater and less predictable than the average 12,000 miles-per-year of a non-business lease.
     

    And there are closed end;

    Closed-End Lease

    What does it Mean? A rental agreement that puts no obligation on the lessee (the person making periodic lease payments) to purchase the leased asset at the end of the agreement. Also called a "true lease", "walkaway lease" or "net lease".
     
    Investopedia Says... Since the lessee has no obligation to purchase the leased asset upon lease expiration, that person does not have to worry about whether the asset will depreciate more than expected throughout the course of the lease. Thus, it is argued that the closed-end leases are better for the average person.

    For example, suppose your lease payments are based on the assumption that the $20,000 new car that you are leasing will be worth only $10,000 at the end of your lease agreement. If the car turns out to be worth only $4,000, you must compensate the lessor (the company who leased the car to you) for the lost $6,000 since your lease payment was calculated on the basis of the car having a salvage value of $10,000. Basically, since you are buying the car, you must bear the loss of that extra depreciation. But, if you have a closed-end lease, you don't buy the car so you don't bear the risk of


    Here is the way I always did my lease deals.


    1) Select the rig you want.


    2) Check the price of a 2 year old rig of the same configuration.


    3) Establish the Lease Buy out price equal to or less than the 2 year old rig.


    4) The per month cost will be greater but it's all a business expense.


    5) The maintainance and insurance are also business expenses.

    6) At the end of the lease, sell the vechile to someone for the agreed value of the buy out, usually 10-15% less than market price.

    7) Do it all over again and you will never have a rig over 2 years old.

    "Anyone who has never made a mistake has never tried anything new... Albert Einstein"
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    Fishhead
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    02/20/2007 10:47 PM
    Dustin, I started in this business in '05, like ten thousand others! I had just purchased a 3 year old 3/4 ton F-250 Crew Cab with 58,000 miles on it. Exactly one year after the purchase of this truck, I had over 120,000 miles on it, after working Rita, Wilma, and a hailstorm in N. Alabama in a matter of 8 months. About 3 to 4 K of those miles was pulling a camper, and probably 15,000 of those miles were fighting Miami traffic all winter. I don't think leasing is the way to go, but if you buy, make sure you get DEPENDABLE transportation. I was lucky with mine, and it's still running fine and in great shape. I only paid 14,000 for it, and I assure you it has more than paid for itself. In fact, when I got to Beaumont to work Rita, I had no camper, and I spent the first couple of nights there in my truck! (I didn't realize there wouldn't be an available room for 100 miles) I finally got lucky and found an apartment in Liberty, TX (45 miles west of Beaumont) to split with 3 other newbies.
    IMHO, I would never buy a NEW vehicle, but I would also never lease. Vehicles do one thing for certain after you purchase them...depreciate. I'd buy a nice, well maintained, slightly used vehicle, and I would continue to maintain it religiously. If you take care of it, it will take care of you.
    Old fishermen never die, they just smell that way.
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