<prompt> Human: Im looking to buy a new car. I plan on commuting 200 miles a day and will put on probably 100k miles in the 3 years i have the lease. The car dealer is trying to push a lease on me saying that the lease is a better deal, even going over the mileage. His point is that if i buy the car, the value will depreciate and equal the what i pay in excess miles. Does this make sense and how can i test this theory? He said he can get me a better deal in a lease. Assistant: Typical lease is 10K to 12K miles a year. So you will be paying for typical overage of 64K to 70K miles. Depending on leasing companies or dealerships, typical excess miles are charged at 0.20 to 0.35 in rare cases 0.40 per mile. So at the end of the lease, you will fork over 14K to 15K. Plus typical lease payment of 400 per month on a 36-month lease, you are looking at 28,400.A brand new mid-spec 2018 RAV4 is 20K to 25K, Carmax is selling a 3-year old 2015 RAV4 with 70K miles at 15K.so if you had bought a new RAV4 3 years ago for 25K and beat the crap out of it, you could probably still sell it for 10K-ish, a total cost of 15K over 3 years. Your 36K miles lease plus 64K overage puts you at 28K cost.Lease is rarely a good deal for customers. Look up the money factor on the lease then do your own math to convert that into APR, you will probably be surprised at how high APR is in a lease. P.S. dealership will not tell you the APR for the lease; its not obligated or legally forced to. It will use money factor, which is just fuzzy math to confuse average consumers. Human: I just find it so weird that he is pushing a lease, when I am basically throwing him a full purchase. Made me think about it, at least. As i have been mentioning to others, I am buying a PHEV eclectric hybrid strictly to get the new HOV sticker in 2019 in CA. No other option really if I want to keep commuting. But thank you for sharing this, good breakdown.  <response>: I just find it so weird that he is pushing a lease, when I am basically throwing him a full purchaseThis fact alone should tell you which option saves you money and which option makes him more money. 