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View Full Version : Decisions - more lease mileage or new car


idworkin
05-05-2007, 09:08 PM
Decisions decisions.

I have an '06 550i (pretty loaded - everything but HUD). When I got the car, I wasn't planning on putting a ton of mileage on it - got a 15K mile per year lease. Then I changed jobs and now I'm driving 100-110/miles per day. I'm at 21K miles on the lease, with 10 months left. By my calculation, I'll be at around 45K miles by the end of the lease - so I'll need to buy more mileage (about $3300). At the end of the lease, the car will almost be out of warranty mileage-wise, so I probably won't buy it.

So, here's the decision
- Do I buy the additional miles? OR
- Do I look to exit the lease early (I put a reasonable amount down - current payoff on the car is around $55K)?
- And, if I exit the lease early, what do I get? I'm sticking with bimmer, but the question is between the 750i and the 550i. I love my 550 - but on the long daily drive, I'm thinking that the 7 would be a little more comfortable (though I drive my cars hard and it'll be tough to give up the 550's performance).

Any thoughts?

jagu
05-06-2007, 05:54 AM
I signed up for a 12k/year lease knowing that I will be doing about 20k a year. I intend to buy the extra mile about 7 months before the end of the least at .16 cents per mile, it's still an awesome deal for me that way.

I would say keep enjoying the car and just pay for the miles like I am doing.

Alex550
05-06-2007, 09:36 AM
I would also suggest when you get close to the mileage in your lease, go to the dealer and see if they can do anything to put you in a new one. This happened to me with one of my XK8's, I went in for service, they noticed that I was close to my mileage and gave me a great deal for a brand new one, a couple more options than I had, more mileage in the new lease, and the best part, the monthly payments were ~$10 less a month, not to mention that it was only a 2-year lease, instead of my normal 3-year. On top of that, since I drove the new one home, I did not have to pay for the service (unlike BMW, Jaguar does not include free scheduled maintenance, which at the time was ~$350). It was a no brainer. The dealer had an incentive to move inventory, I had an incentive to not pay for more mileage, so it all worked out.

nahugry
05-07-2007, 11:55 AM
If I were you I'd look into getting into a new one.
Dealer will take your leased vehicle as a trade-in, and will pay the car off while putting you in a new car leased and/or purchased.
In fact I'll tell you my story. I had a leased 05 330i with 12k/yr for 3 years. I had 6 mos left on my lease with over 54k miles on it. It was gonna take me a fortune to buy more miles(in fact, i think i was late by then to even buy more miles) to cover the overage(which i calculated will be around 24k miles over by the time the lease was up!!)
So I called the dealer and the finance manager there told me to bring in the car and they will see if they can do something for me.
Which I did, and they took the car as a trade-in, arranged to pay significantly more than the BlueBook trade-in value to match the payoff, all in the time that the salesman was helping me choose another bimmer.
I ended up buying a CPO 04 525i, and they got me a great deal with the car as well.
So from my experience, you maybe able to do the same with yours and end up with a great deal for yourself; provided you have a dealer that you normally use and they enjoy your business....^^) Good luck!

jagu
05-07-2007, 06:28 PM
Honestly, the obligation to pay off the mileage doesn't disappear unless the car is purchased from the leasing company. The "good deal" on the trade in is somehow rolled into the price of the new car that you buy, so watch out.

nahugry
05-09-2007, 12:03 PM
The "good deal" on the trade in is somehow rolled into the price of the new car that you buy, so watch out.

You just have to know all the numbers the dealer is going to present to you.
Know what your payoff will be BEFORE you walk into the dealer, and have a pretty good idea how much your leased car is worth. Then find out what the dealer will pay you for the leased car, and how much they say the payoff is, to make sure the numbers the dealer gives you and the number you know is consistent. The negotiation for a replacement vehicle should be a whole new ball-game.

chrischeung
05-09-2007, 12:22 PM
Did you consider getting a second car for commuting and keeping the current one?

If you get something like a used hybrid, you can use the HOV lane when driving alone. You may cut down your commuting time. It may also work out financially beneficial in the long term.

SergeyM
05-09-2007, 08:20 PM
Decisions decisions.

I have an '06 550i (pretty loaded - everything but HUD). When I got the car, I wasn't planning on putting a ton of mileage on it - got a 15K mile per year lease. Then I changed jobs and now I'm driving 100-110/miles per day. I'm at 21K miles on the lease, with 10 months left. By my calculation, I'll be at around 45K miles by the end of the lease - so I'll need to buy more mileage (about $3300). At the end of the lease, the car will almost be out of warranty mileage-wise, so I probably won't buy it.

So, here's the decision
- Do I buy the additional miles? OR
- Do I look to exit the lease early (I put a reasonable amount down - current payoff on the car is around $55K)?
- And, if I exit the lease early, what do I get? I'm sticking with bimmer, but the question is between the 750i and the 550i. I love my 550 - but on the long daily drive, I'm thinking that the 7 would be a little more comfortable (though I drive my cars hard and it'll be tough to give up the 550's performance).

Any thoughts?

Good choices:
1. Buy additional miles from BMWFS before last 9 month at 16 cent/mile - $2,400
2. Wait till the end of lease and try to trade the car. Would work well for a car in an exceptional shape with 5,000-6,000 miles over the limit. 15,000 miles will be tough. The reason why it works is the special pricing BMWFS provides for dealers and your dealer may be willing to buy your car and save on auction fees and transportation.

Exiting a lease early should be the most expensive. Unless you hate the car and want to get rid of it at any cost you should not go that way. As to what to get instead - the only car that comes to my mind is S5. Do you have to have a 4-door?

idworkin
05-11-2007, 11:12 PM
I definitely don't hate the car (its a 550!); I have considered looking for a used hybrid - but I drive the hybrid and then go back to my 550 and i'm not sure that i could deal with decrease in power :) I've also thought about a 2000 or 2001 740i, splitting the driving between than and my 550, and then trading the 550 at teh end of the lease. Hmmm

Kamdog
05-12-2007, 05:52 AM
Are you really so sure that the 7 will be that much more comfortable to commute in than the 5? It is my impression that that is not really the case to any measurable amount. I suggest that you try to drive the 7 and the 5 back to back, in the same way, and write down what the differences are. You may find that for commuting, the differences are slim.