BMW lease over-mileage question

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1

Hi ya’ll, looking for some experienced insight about how to best play this situation:

  1. I ordered a new BMW custom build just before end of 2017. It’s arrived! (530xe with all the trimmings)

  2. Part of my calculation / negotiation was that the excess mileage charge on my current leased BMW (x4) would go away if I leased another BMW (i’ll have around 6k extra miles on the car).

  3. I’ve heard conflicting things about this from BMW people. When shopping, at least a couple dealers told me that this is a cost that BMW absorbs (not the dealer). But I recently had a discussion on the phone with BMW lease-end agent, who denied this assertion.

  4. I realized that I don’t have anything in writing about this except a postcard I got last fall, with the offer to "avoid lease-end over-milage penalties" by leasing a new BMW, but that offer was time-limited to 10/31.

Don’t want to go pick up the new car and run into a disappointing confused expensive clusterfork.

Anyone with good info, please share!

2

Your CA that you ordered from should have been following this with you all along. Ask them to make good on the overage waiver

3

Doubt you will get “away” that easily from the over mileage charges
Dealership will tack on the mileage charge onto the new car payment. Just my opinion [6k extra miles is $1500 if its 0.25 cent a mile… probably will divide that 1500 in 36 month and slide it into the new car lease.

4

My CA is cool and I know he’ll make good on anything he promised, but truth is I don’t recall exactly how much we discussed the over-mileage factor. I was negotiating with a few different dealers at the time, and it was kind of rushed, so this part is a bit fuzzy.

I guess my basic question is whether its the dealer or BMWFS who potentially absorbs the cost of excess mileage if you lease a new BMW. Seems like the dealer doesn’t have much incentive to do so at this point.

Not a huge deal if I pay for it myself, but I was assuming that at least some of the mileage would go away.

5

From my past experience BMW will not waive any overage miles, you are responsible for that. It used to be 18 cents a mile for prepaying, I think the new rates are 20 or 25 cents a mile. Since in your case it will be $1080 or so dealer can simply discount the new car by that amount. Now if you are part or pull ahead or a special BMW program they may have more room to play with, but I have never seen any value by adjusting excess miles. I simply make a deal on a brand new bmw and pay the company excess miles, it comes out to be cheaper.

6

If the dealer decides to take the car in on trade then you will be fine if the dealer dosent take it in then you will be dealing with BMW…

7

@DroseBMW, I assume BMWFS will offer the dealer a discount to purchase the car, rather than send it to auction, correct? I can’t see many (most) of these things being worth residual when it’s time to turn them in in 2 years, so unless BMWFS does give a discount, I can’t see many dealers buying these for CPOs. Could be wrong, I suppose.