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      04-03-2015, 02:53 PM   #115
M4LF
Second Lieutenant
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Drives: BMW M4
Join Date: Jan 2009
Location: CA

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Quote:
Originally Posted by OneRib View Post
It may be perfect for you. By 2.5 years you with be at about 40k and it would be cheaper to prepay the extra mileage at $0.16/mile rather than take the 2% residual hit for a 15k/year lease.

Now there are some potential pitfalls.
1- Many times M cars are not eligible for lease pull ahead
2- They may not offer lease pull ahead or have it at a time when you're eligible
3- If you wanted to stay in the lease until the end

That being said, it's not a huge financial hit to pay for extra mileage and you can do that up to the day before lease maturity and get the discounted rate (0.16 vs 0.20). Also you can buy extra mileage multiple times so if you aren't sure exactly how many miles you'll need, you can always underestimate. Lastly pre-purchased extra mileage can be refunded at a prorated amount if you don't use it all.
Actually come to think of it, it should still benefit me to do 12k even though I need 15k. In terms of total payments it's a wash: $28,796 for 15k and $28,747 for 12k plus extra 0.16 at the end. In terms of money due at signing it's slightly better at $7813 (7 MSDs, zero down) for 15k vs $7421 for 12k miles.

Potential benefits are if they decide in three years to make M cars eligible for lease pull ahead then I'll save to additional payment of mileage and waive disposition fees. So essentially zero downsides and a few potential upsides.

Just started the process for an ED M4 this morning so crossing my fingers that everything will go smoothly.