.01 per mile over 10k? What?

[LA525iT]

My nextdoor-neighbor just picked up a new leftover 2005 X3 on a 36 mo lease today. She swears her deal is nothing down for 10,000 mpy with only a .01 per mile penalty overage. I said, you mean 10 cents, not 1 cent, right? She swears, 1 cent.

Is this possible? Anyone ever hear of this? If true, I'm tempted to go lease a car today and drive it to the moon.

BTW, she's a lawyer and I know she read her contract. I havent seen it yet (because I never go home from work :( )

[Jon S.]

She a lawyer?!?!

[philippek]

BTW, she's a lawyer and I know she read her contract.

Lawyers can lie too...no offense of course :D

[Jon S.]

In legalese I believe the expression is "mistake of fact", perhaps preceeded by "fraudulent
misrepresentation of a material fact" (by a "kinky" F&I guy)...

[chuck92103]

Totally possible, the X3 sales have been very sluggish.

I have seen everything from great lease rate, to 2% finance rates, to 5-8k off sticker.

[LA525iT]

Lawyers can lie too...no offense of course :D

I'm too busy to lie. Heck, I've billed 27 hours so far today :p

[Jon S.]

Totally possible, the X3 sales have been very sluggish.

I have seen everything from great lease rate, to 2% finance rates, to 5-8k off sticker.Highly improbable (read impossible). Hypothetcially speaking, let's say a lessee
ends up driving 40K miles over the allowed mileage (not unprecedented). They
bill the lessee $400 bucks. What do you suppose the actual cash value of that
vehicle would be at the end of the lease?? BMWNA/BMWFS would never take
it in the shorts like that to move a couple of slow-moving units. Never.

[LA525iT]

Okay, got the skinny on this from the dealer because it was driving me crazy.

The dealer offered that overage miles could be purchased at the end for .16 per mile, which is of course .01 more than the pre-pay rate of .15 per mile. This represents a .04 savings over the normal .20 penalty. Good deal and certainly believable.

For the record, my neighbor is an in-house attorney and never took the California bar :p Might explain why she is having trouble with contractual terms.

[chuck92103]

Highly improbable (read impossible). Hypothetcially speaking, let's say a lessee
ends up driving 40K miles over the allowed mileage (not unprecedented). They
bill the lessee $400 bucks. What do you suppose the actual cash value of that
vehicle would be at the end of the lease?? BMWNA/BMWFS would never take
it in the shorts like that to move a couple of slow-moving units. Never.


Hum let's try this again folks. This is totally believable. here is why.

Suppose you are selling/leasing an X3 to a potential buyer. The X3 has an MSRP of $45k.

BMW needs to unload the vehicles. So they can

A. Drop the finance rate
B. Drop the MSRP
C. Lease at close to retail and provide a no cost over mileage incentive. So in this case, they are simply playing the odds to move vehicles. So suppose you leased the X3 for 45k, @12k miles per year, is 36k miles.

Now you go over the mileage limit by 50k miles. even at the normal 15 cents a mile over charge, we are only talking about 7,500 bucks. We just established earlier they were discounting 4-8k anyway. So what is the difference.

More then likely, most people migh go over by 10k miles of the life of the lease if they did not have to worry about miles.

So it is totally doable. Just another way to market a vehicle.

Of course, you are way better offer getting the discount off sticker, and not going over the mileage.

[philippek]

So they can

A. Drop the finance rate
B. Drop the MSRP
C. Lease at close to retail and provide a no cost over mileage incentive. So in this case, they are simply playing the odds to move vehicles. So suppose you leased the X3 for 45k, @12k miles per year, is 36k miles.



A. No, those are published monthly and are fixed.
B. No, that's on the Monroney and that's a legal document.
C. No, they don't "play the odds" on mileage to move more vehicles.

[chuck92103]

Regular BMWNA finance rates are published.

However the regional specific dealer/customer incentives are not.

Same stuff going on with the M3 $2,500 discount coupons.

[Jon S.]

Regular BMWNA finance rates are published.

However the regional specific dealer/customer incentives are not.

Same stuff going on with the M3 $2,500 discount coupons.Chuck, FYI, up until recently I was General Sales Manager of a large BMW
Center; I worked with BMWFS at an arm's length for almost a decade.
The risk is too great for abuse of the puported mileage penalty.
It would crazy to offer such a inane rate. Even if the X3 is
supposedly a "slow mover", it is most certainly *not* "distressed
merchandise". With all due respect, this whole idea is ludicrous.
What's more, with such a radical offer, why hasn't anyone heard
this "special" advertised? What is the corresponding incentive for
cash buyers??

[chuck92103]

Geesh the post just happened. Get a grip.

BMWFS leasing is such a scam anyway for BMW to float money to the BMWFS arm of the company rather than admitting that they need to discount cars to move them jsut like everyone else.

So, again, nothing surprises me in the numbers game.

[Jon S.]

Geesh the post just happened. Get a grip.

BMWFS leasing is such a scam anyway for BMW to float money to the BMWFS arm of the company rather than admitting that they need to discount cars to move them jsut like everyone else.

So, again, nothing surprises me in the numbers game.
BMW has traditionally had the highest leasing penetration in the industry.
You can think of a subvented lease program as a "discount", however you
will probably never see marketing programs that include rebates,
"Employee Purchase Programs", ...etc., that would be "jsut like
everyone else"... Cash incentives such as the M3 incentive
referenced above sometimes occur at what is known as "buildout" -
the end of the production run with a particular chasis. With BMW this
happens once every 7 years. The Japaneese and domestics typically
go through this every 4 years.

Both KBB and ALG rate BMW as having the highest resale value
in the industry too, further evidence of and rationale for strong
leasing programs.

[Jon S.]

Okay, got the skinny on this from the dealer because it was driving me crazy.

The dealer offered that overage miles could be purchased at the end for .16 per mile, which is of course .01 more than the pre-pay rate of .15 per mile. This represents a .04 savings over the normal .20 penalty. Good deal and certainly believable.

For the record, my neighbor is an in-house attorney and never took the California bar :p Might explain why she is having trouble with contractual terms.One thing that you may not be aware of is that BMWFS will not fund a lease
contract that does not conform to their defined terms including disposition
fee, excess mileage penalty rates, ...etc. Even if the dealer wanted to
make their own special amendment they couldn't do a "strikeout" and alter
the details or terms preprinted on the lease contract. It's not really a big
deal, but I would still suspect a mistake of fact.

[djlfp]

The dealer offered that overage miles could be purchased at the end for .16 per mile, which is of course .01 more than the pre-pay rate of .15 per mile.I may be missing something, but I think the argument is over guys. This is from post #8 above. The extra miles ARE costing $0.01 per mile; $0.01 per mile MORE than if purchased up front. :yikes:

[Jon S.]

I may be missing something, but I think the argument is over guys. This is from post #8 above. The extra miles ARE costing $0.01 per mile; $0.01 per mile MORE than if purchased up front. :yikes:
But even that does not make sense...

:stickpoke

;)

[djlfp]

But even that does not make sense...

:stickpoke

;)Oohhh. :(

It may be flat out wrong, but at least it makes sense (to me). Let me know whether I did not adequately explain my interpretation. :angel:

[Jon S.]

Oohhh.

It may be flat out wrong, but at least it makes sense (to me). Let me know whether I did not adequately explain my interpretation.
Your interpretation makes perfect sense.

:)