An agreement offered by General Motors (GM) for vehicle usage with a reduced annual mileage allowance defines a specialized lease. This financial product is tailored for drivers who anticipate covering fewer miles than the standard lease agreement permits. For instance, a typical lease might allow 12,000 miles per year, whereas this specific option might limit usage to 7,500 miles or less annually.
This type of agreement offers several potential advantages. It can result in lower monthly payments compared to standard leases, reflecting the reduced depreciation expected on the vehicle. Historically, such options arose to address the needs of urban dwellers, retirees, or individuals with short commutes who don’t require extensive mileage. It’s designed to make leasing a newer vehicle more accessible and affordable for a specific segment of the market.