Short story, I had to get a new lease very quickly due to life circumstances. Here’s my situation and looking for some advice from the awesome experts here. I’d love to get into a new lease or a purchase (need a suv).
BMW 535i
14 months remaining (lease ends Aug 2018)
Total miles allowed on lease: 35,355 ( already at 36k +)
Excess charger per mile is $.20
Residual $39,806
KBB value puts it at about $32k.
Current monthly including tax is $606.
I’m in California.
I’m probably going to be in excess of 20k in miles over the allowed miles.
What do you experts/hackers suggest if I want to get into a new car? Just finish out the lease and bite the bullet? Roll over into a new lease/purchase? Making the monthly $606 is not a concern at all.
Is the residual or the current payoff $39,800? If it’s the current payoff, you are already at about $8k negative equity, which would add ~$222/month into whatever you get next. If it’s the residual, that means you are even more negative and probably can’t do anything to get out of the current lease.
So the current payoff is ~$48k and the KBB value is ~$32k ($444/month in just negative equality to roll into a 36 month term). You could probably jump to a cheap Chevy Trax with a monthly of about $600/month.
At your current rate, your mileage overage at lease end would be ~23k+. That’ll cost you additional $4500 in penalties.
If you can park it up for 14mths somewhere you could do another lease on something at $320/mth for 2 years and 15k miles (bmw 330e might be a good shout if you do the deal TODAY which will be under pressure again, but check out the threads here as you might be able to lock a deal in Aprils incentives - but it would have to be today) or buy something instead…
Given your mileage it sounds like you need to buy something - not lease.
Unfortunately you don’t have many options and 0 good ones. I would ride out the lease if I were you. If you are 20,000 miles over at the term date, that puts your bill at 4K for overage. I would suggest leasing another Beamer next August and taking advantage of the loyalty money, no disposition fee AND most importantly negotiating with your dealer on waiving some or all of those miles if you were to get into another BMW.
@AMM thanks. I’ve consider doing that but I feel in the long run I’ll be paying for 2 leases, 2 insurance, etc so better to bite the bullet at the end of the lease and pay what I owe or make a deal.
You could drop your insurance coverage on the BMW massively to essentially cover theft and malicious damage issues, or “off road” - or would be super cheap I would have thought? Also no need to pay tags if you tell the DMV it’s not in use.
But still, you need to put the thing somewhere for that time- not ideal.
I have 5k miles left on my 535 as well, 11 months remajning, i just leased last march a chevy volt. I never looked back, another car in my insurance only add $74/year. It’s our 3rd car. Now my 5series is my weekender car now.
PRAY for a pull ahead, in the past they didn’t care about mileage with the pull ahead programs, but obviously you would have to lease another BMW. But other than that i don’t think you have much choice to but to either suck it up and pay for the miles at turn in or lease something else ultra cheap to keep the miles off the car.
All the suggestions so far are pretty good. One more to consider is getting a BMW Visa card and to start hoarding points that can be used to purchase excess miles. It’s not that hard to build up $5,000 points per month or more. Good luck!
Simple math time…20,000 * .20 = $4,000 over 14 months
$4000/14 = $285 a month
Everyone here suggesting getting a beater or another lease needs to account that the additional car would need to be COLLECTIVELY less with insurance, payments, acq. doc fees, reg than $285 a month for it to be worth getting ANOTHER whole car.
Think carefully as you run the numbers and keep driving the BMW or swapalease it with a huge incentive.
What the hell insirance do you have that allows you to add a car at $74/year?? I’m contemplating a 3rd car and even the cheapest Honda is about $50/month… I have 300/100 coverage, uninsured coverage, etc (gieco)