Big BMW Lease Mistake, How to Remedy?


Long story short, we leased my wife a 2017 X1 M Sport in February of 2017. 3 year, 36k miles. At the same time I purchased a beater because I have a work car. Not realizing it, we used her car way more than my car because its obviously much nicer, more reliable, etc. With 11 payments left we have 1,000 miles remaining. Here are my options as I see them.

  1. Pay $545 x 11 months + BMW overage miles of around $3k. This will be almost $10k to have the car for the remainder of the lease.

  2. Pay $545 x 10 months once we hit the mileage limit and park the car in the driveway. This will be approximately $5450, and we will not be able to use the car.

  3. The current payoff is $29k and residual around $24k. Sell the car now, private party or to a dealer, roll the negative equity into a new car purchase. I currently have an offer of $24,500 from Vroom. We are looking at cars with a purchase price of around $30k. Roll in $5k negative equity, make that loan amount $35k instead, take the 1.9% financing from my credit union over 60 months, and the payment is in the same neighborhood we are now (which is manageable).

  4. Lastly, go to BMW now and see if we can get out of this car and into another lease ASAP. I am not even sure this is possible as we are still so far away and I was hoping to move away from leasing.

What do you guys think? Thanks for any help/guidance.

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You’ll still have to keep insurance while it’s parked too.

Can’t roll negative equity if selling PP. would have to be dealer trade. Being a dealer trade, your KBB value is probably high. They’ll pay wholesale (or what they could get similar car for at auction). Carvana/Vroom seem to overpay for cars In certain markets though (apparently yours is one). That would be equivalent of selling PP though, since you wouldn’t be purchasing new off them unless you’re not leasing the next car and thinking of buying used.

You’ll be able to get out, but you’ll pay for it. No pull ahead offers right now from BMW, so they’ll roll the negative if they buy it, or your remaining payments if they send to auction.

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You could also look to transfer it and prepurchase mileage for the new lessee. I believe prepaid mileage is .23/mile, so could add almost 7,000 miles for $1,500.

Your other problem is your payment seems high so may not be very competitive and still need to offer an incentive. $550/month is X3 M Sport money these days.

I would say bite the bullet and just absorb the mileage overage as any other option would be more expensive and prepurchase them soon to get the discount.

Rolling the negative equity into something new is just kicking the can down the road and you will pay significantly more taking into account the interest and tax.

Can you swap out your work beater out for a low cost lease so you have a nicer car and limit use of the X1? You can probably get a 320 loaner for low $200/month before upfronts since you have loyalty.

I realize I will have to pay the insurance while it sits unfortunately. Technically, even if I sold PP I could roll the negative equity. I could float the negative balance and then when applying for the new car loan just do 120% value or something along those lines. Again, not ideal.

Neither of those two options sound too appealing with BMW without any pull ahead. Crap.

Roll it into leasing an X6, they will take some of the sting out of the negative equity

That isn’t as bad as I thought, I was thinking the miles would cost me much more.

That hurts to hear. At the time I traveled almost 3 hours away to a Bimmerfest forum sponsor for what was considered the best deal I could find at the time. That was no MSD, no money down, and after tax, title, registration. Hmmm.

What do you mean swap it? I could add another car, but I would still keep the beater. Maybe if they would lease me one for 1 year @ $200 a month I’d consider it but that seems really unlikely.

Really? How so?

They will give you Loyalty credit, forgive some of the overrage and roll some of you payments in new lease but the X6 is leasing really well with 5.5k incentive plus10-15% off MSRP…

Plus we can give you an OL code good for another 1k off. So with around 5.5 + 1k OL code, you have 6.5k funny money to play around with … Also we will give you the BMW CCA 1k rebate, so around 7.5k funny money to absorb the blow the of the X1 trade

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Yeah, extra mileage isn’t that bad when compared to your alternatives.

Sorry that stings, but that’s just talking present value especially with BMW unloading ‘18s at ridiculous prices. You may have gotten a strong deal at the time, but if you are looking to swap it, people look at comparable leases now.

Nice thing about a 3-series is the best deal is on a 24-month lease. Otherwise go on Swapalease and see what is the cheapest lease in your area with the right amount of miles for you.

In the end, you are still probably best off buying the mileage vs adding another car and the insurance. If you plan on getting another BMW at the end, BMWF maybe be willing to eat some of the overage like other brands do. Confirm with BMWF as if the dealer offers they are just rolling it into the next car.

That sounds amazing, except for the fact I am not sure I can afford an X6 lease. :frowning:

did you get an X6? I’ve noticed a lot of pep talk from you about that car all over the forum

The X6 is at the same lease price you are paying now 550 a month…

Yup in process of pulling trigger on one - making sure I am lining up all my goodies . Was missing OL code till the kind soul @blitz liberated me. With 7.5k cash on hood, how can I say no to X6?
Plus I like spreading the word around unlike some who guard it jealously or until deal is done. Mine is not a unicorn - can be replicated almost anywhere …

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Sample deal is
MSRP 68k
SP 60K
Incentives /conquest 5.5k
OL code 1k
MSD etc landing us at 550 a month
Post purchase CCA 1k rebate. so we are at 530 for 68k car, aka .77 percent rule. Not bad I think …

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Doesn’t he then have a $1,000/month payment after rolling in the remaining payments plus tax (and interest on the payments)?

Beat me to the punch…BMWFS isn’t going to roll over + play dead on the 6k he still owes in payments.

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And that’s assuming I have enough money for MSD’s.

My friend - I am throwing ideas. I do not know your finances. so do your due diligence etc etc

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At this point, $2k nets me approximately 8500 miles which I can save up for and purchase one day before the car gets turned in. I think this is my only rational choice.