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      12-05-2017, 08:38 PM   #1
sean.witlock
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Smile Low mileage lease end question

Hey guys, long time reader, first time poster! Not sure if this is the correct Forum, but I have a quick question about my lease before I return it. I have a 3-year/30,000 mile lease on a 2014 BMW 328i M-Sport which I need to return by December 17 2017.

Question is: I only put 20,000 miles on it, are there ANY incentives, benefits or or leverage I can get from the fact my mileage is so low?

It seems to me that I paid for three years of a car that was only really used for 2... Do I get any incentives or money back in any way?? Don't think there is but thought I would ask.

I'm not sure what I'll be doing for my next car, I would like to go with BMW again (been with them for 6+ years with flawless payment history). However I really would like to save some money, and am looking to downgrade a bit in terms of car to get a lower monthly (Currently $360 w/ 2k down). What do you recommend?

Do I:

a) Extend the lease of my current car by a year? Is this even allowed? Encouraged?
b) Get into a new BMW? Again, returning my car with this low mileage, do I have any leverage at the dealer at all?
c) Purchase the car? This is something I'd rather not do at all, especially since the maintenance runs out in a year. Never felt that owning was a good bet with these kinds of cars.

Thanks again, long-time reader, first-time poster! Thanks for having me on here!
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      12-05-2017, 09:15 PM   #2
ppointer
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Quote:
Originally Posted by sean.witlock View Post
Hey guys, long time reader, first time poster! Not sure if this is the correct Forum, but I have a quick question about my lease before I return it. I have a 3-year/30,000 mile lease on a 2014 BMW 328i M-Sport which I need to return by December 17 2017.

Question is: I only put 20,000 miles on it, are there ANY incentives, benefits or or leverage I can get from the fact my mileage is so low?

It seems to me that I paid for three years of a car that was only really used for 2... Do I get any incentives or money back in any way?? Don't think there is but thought I would ask.

I'm not sure what I'll be doing for my next car, I would like to go with BMW again (been with them for 6+ years with flawless payment history). However I really would like to save some money, and am looking to downgrade a bit in terms of car to get a lower monthly (Currently $360 w/ 2k down). What do you recommend?

Do I:

a) Extend the lease of my current car by a year? Is this even allowed? Encouraged?
b) Get into a new BMW? Again, returning my car with this low mileage, do I have any leverage at the dealer at all?
c) Purchase the car? This is something I'd rather not do at all, especially since the maintenance runs out in a year. Never felt that owning was a good bet with these kinds of cars.

Thanks again, long-time reader, first-time poster! Thanks for having me on here!
I don't lease any more. My wife got hit a few years ago, and car totaled. Check from insurance was greater than lease payoff because of down payment and condition of car. Lease company (Nissan) kept the overage, meaning we were screwed out of down payment. Never again will I lease a car OR buy a Nissan.

Your choices:

- turn it in and lose the equity. not really yours anyway at the end of the contract
- trade it in now, and apply the equity to your next BMW. it's yours today, because there is a payoff to the lease, but the car is probably worth more than the payoff
- buy it. why not? I have four BMWs, the newest being a 2011. In my experience, they age really well if you chose the right options.
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      12-05-2017, 10:03 PM   #3
jmg
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Quote:
Originally Posted by ppointer View Post
Quote:
Originally Posted by sean.witlock View Post
Hey guys, long time reader, first time poster! Not sure if this is the correct Forum, but I have a quick question about my lease before I return it. I have a 3-year/30,000 mile lease on a 2014 BMW 328i M-Sport which I need to return by December 17 2017.

Question is: I only put 20,000 miles on it, are there ANY incentives, benefits or or leverage I can get from the fact my mileage is so low?

It seems to me that I paid for three years of a car that was only really used for 2... Do I get any incentives or money back in any way?? Don't think there is but thought I would ask.

I'm not sure what I'll be doing for my next car, I would like to go with BMW again (been with them for 6+ years with flawless payment history). However I really would like to save some money, and am looking to downgrade a bit in terms of car to get a lower monthly (Currently $360 w/ 2k down). What do you recommend?

Do I:

a) Extend the lease of my current car by a year? Is this even allowed? Encouraged?
b) Get into a new BMW? Again, returning my car with this low mileage, do I have any leverage at the dealer at all?
c) Purchase the car? This is something I'd rather not do at all, especially since the maintenance runs out in a year. Never felt that owning was a good bet with these kinds of cars.

Thanks again, long-time reader, first-time poster! Thanks for having me on here!
I don't lease any more. My wife got hit a few years ago, and car totaled. Check from insurance was greater than lease payoff because of down payment and condition of car. Lease company (Nissan) kept the overage, meaning we were screwed out of down payment. Never again will I lease a car OR buy a Nissan.

Your choices:

- turn it in and lose the equity. not really yours anyway at the end of the contract
- trade it in now, and apply the equity to your next BMW. it's yours today, because there is a payoff to the lease, but the car is probably worth more than the payoff
- buy it. why not? I have four BMWs, the newest being a 2011. In my experience, they age really well if you chose the right options.
This is exactly why you don't put a down payment on a lease.

I keep reading about people putting down payments on a lease and I shake my head every time.

OP check the blue book and lease payoff on your car. If it's more than your lease payoff then take it to carmax and see if they will buy it off you. Congratulations, you just made $X.
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      12-06-2017, 10:12 AM   #4
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A couple of thoughts to add to what others wrote:

- Don't put any money down on a lease
- You may be able to get some benefit in a new lease for bringing in a low mileage car to a dealer - it's a low probability and 20K is not that low. I just did this with my wife's car (Honda) with 5K miles (don't ask) after three years and they gave me $300 on a $18K car towards a new lease
- Keep in mind that BMW will give you $200-$300 back at the end of the lease based on unused mileage (you have to be 10-20% below your total mileage allowance for three years). Call them to check exactly what they give back, irrespective of whether you get a new lease with them or not
- the lease vs buy decision you have to make on your own based on your circumstances. I am in finance and run all sorts of scenarios on lease vs buy and concluded that with low interest rates leases are almost the same in total ownership cost as buying plus the free option to get a new car every three years. No need to worry about maintenance and warranty costs, obsolete designs and technology, etc.
- BMW has made some changes to their lease programs this year that makes leasing with BMW more expensive (no MSDs, lowered residuals, etc.) that will also impact your lease vs. buy decision.
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      12-06-2017, 05:02 PM   #5
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Quote:
Originally Posted by jmg View Post
This is exactly why you don't put a down payment on a lease.

I keep reading about people putting down payments on a lease and I shake my head every time.

OP check the blue book and lease payoff on your car. If it's more than your lease payoff then take it to carmax and see if they will buy it off you. Congratulations, you just made $X.
Are people confusing PCP (Personal Contract Purchase) to lease. There is no option of buying a leased car in the UK, your name is not even the registered keeper. However PCP gives you the option of buying the car outright or returning the car at the end of the contact.
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      12-06-2017, 06:25 PM   #6
jmg
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Originally Posted by babaikram View Post
Are people confusing PCP (Personal Contract Purchase) to lease. There is no option of buying a leased car in the UK, your name is not even the registered keeper. However PCP gives you the option of buying the car outright or returning the car at the end of the contact.
I've never heard that term before. Must be just a UK term? Here in the US you can request for a pay off price anytime during the lease. There is also what is called a Balloon Loan, which is the option to pay the ballon payment at the end to purchase the car. The payments are usually higher than a lease, but the ballon payment at the end is lower than if you had leased and purchased at the end.
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      04-17-2018, 12:59 PM   #7
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Quote:
Originally Posted by sean.witlock View Post
Hey guys, long time reader, first time poster! Not sure if this is the correct Forum, but I have a quick question about my lease before I return it. I have a 3-year/30,000 mile lease on a 2014 BMW 328i M-Sport which I need to return by December 17 2017.

Question is: I only put 20,000 miles on it, are there ANY incentives, benefits or or leverage I can get from the fact my mileage is so low?

It seems to me that I paid for three years of a car that was only really used for 2... Do I get any incentives or money back in any way?? Don't think there is but thought I would ask.

I'm not sure what I'll be doing for my next car, I would like to go with BMW again (been with them for 6+ years with flawless payment history). However I really would like to save some money, and am looking to downgrade a bit in terms of car to get a lower monthly (Currently $360 w/ 2k down). What do you recommend?

Do I:

a) Extend the lease of my current car by a year? Is this even allowed? Encouraged?
b) Get into a new BMW? Again, returning my car with this low mileage, do I have any leverage at the dealer at all?
c) Purchase the car? This is something I'd rather not do at all, especially since the maintenance runs out in a year. Never felt that owning was a good bet with these kinds of cars.

Thanks again, long-time reader, first-time poster! Thanks for having me on here!
1.It is my understanding that BMW Financial will only extend lease by 1 or 2 months unless you have a new build ordered and may do upto 6 months.
2. If you lease/buy again, BMW has an incentive for lower miles upto 25% of the contracted mileage, I believe the max is like $300 crediting.
3. Do not pay residual, dealer can CPO is you buy your own car if desired.
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      04-18-2018, 08:28 PM   #8
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I spoke with BMW financial 2 months ago when my lease was almost up. If you lease again with them and your miles are low enough they'll give you a bit of cash (maybe 300).

The major thing I learned from this forum is that you can often negotiate the buy out price on your vehicle. For example- My BMW financial buyout price was 30,300 and I bought the car last week for 26,700 + 800 to certify cpo and add a year of warranty coverage. Also they're offering 2.9% financing on cpo cars right now. Might be a good option for you and you don't have to wait until lease end to do this.
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      04-18-2018, 09:43 PM   #9
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Quote:
Originally Posted by ppointer View Post
I don't lease any more. My wife got hit a few years ago, and car totaled. Check from insurance was greater than lease payoff because of down payment and condition of car. Lease company (Nissan) kept the overage, meaning we were screwed out of down payment. Never again will I lease a car OR buy a Nissan.

Your choices:

- turn it in and lose the equity. not really yours anyway at the end of the contract
- trade it in now, and apply the equity to your next BMW. it's yours today, because there is a payoff to the lease, but the car is probably worth more than the payoff
- buy it. why not? I have four BMWs, the newest being a 2011. In my experience, they age really well if you chose the right options.
My M235i lease was hit and totaled also and I was paid the difference between the appraised value and my lease residual by my insurance when I went in to sign paperwork and hand over the spare key. I also was mailed a check from BMW for my MSD. Pretty messed up they kept yours.

+1 for Carmax appraisal.
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