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Discussion Starter · #1 ·
Hello, all
I'm new to BMW, we have signed a 45,000 lease for 430i two months ago. The lease agreement says: "I may be charged for excessive wear based on your standards for normal use and for mileage in excess of total miles over the scheduled lease term of "45,000" miles, at rate of "0.25" cents per mile."
0.25 cents per mile (or 1/4 cents)=1000 milesx0.25cents=250cents=$2.5 for 1000 miles
Did BMW made a mistake? I don't see how 0.25 cents/mile will stand in court if they try to charge us 25 cents/mile
1029268

Attaching lease copy.
Please share your lease verbal if different.
Thank you
 

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Porleau
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Out of curiosity, I just checked my lease contract and there is no decimal, just '25', so you may have a technicality here. Let us know how this turns out.
 

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Generally speaking, contracts are interpreted against the drafter which in this case is BMW and car makers have argued, for years, that they are only bound by the four corners of the contract document, not what they may have said in advertising and discussions. Your lawyer looks like she is right.
 

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Discussion Starter · #4 ·
Out of curiosity, I just checked my lease contract and there is no decimal, just '25', so you may have a technicality here. Let us know how this turns out.
Thank you, will do. We didn't think about extra miles, it is my first lease in my life, and after reading the contract I though "ah, 0.25 cent per mile is not a big deal". Then somebody at work told me "no way, it is 25 cents". I verified and it is not what the contract says. $3750 vs $62.50 for extra 15,000 miles is not too much money to arbitrate for, with that I'm just puzzled with the numbers and the way it legally reads
 

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Glfbggy
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While I am not a lawyer (BTW, it should only be their guidance you listen to, not this forum, including myself), I work in contracts. Typically, you get what is written and no more, or less. In this case, it is written 0.25 cents, not 0.25 dollars and there is no $ symbol in front to create confusion. Further, if there is no additional example of calculation to follow which might create confusion as to whether cents or dollars are the appropriate reference, I believe you have a great argument if someone at BMW FS tries to say otherwise.
 

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Your lawyer failed maths.

The fact is the decimal states it is 1/4 of 100 or .25 of 1.00. This is formally taught in the 2nd grade in the U.S.

There is no need to show the cent symbol (¢) because it's formally written into the contract as cents or the .25 of 1.00.

If your lawyer attempts to argue this in court, he/she will lose, and you will end up paying all court and legal fees.

Find a contract attorney.
 

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Your lawyer failed maths.

The fact is the decimal states it is 1/4 of 100 or .25 of 1.00. This is formally taught in the 2nd grade in the U.S.

There is no need to show the cent symbol (¢) because it's formally written into the contract as cents or the .25 of 1.00.

If your lawyer attempts to argue this in court, he/she will lose, and you will end up paying all court and legal fees.

Find a contract attorney.
You're wrong. The OP's lawyer is better at math than you are. Again, units matter.

"0.25 cents per mile" does mean $25 for 10,000 over-miles, since "0.25 cents per mile" is equal to "$0.0025 per mile." .
 

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Discussion Starter · #9 ·
Your lawyer failed maths.

The fact is the decimal states it is 1/4 of 100 or .25 of 1.00. This is formally taught in the 2nd grade in the U.S.

There is no need to show the cent symbol (¢) because it's formally written into the contract as cents or the .25 of 1.00.

If your lawyer attempts to argue this in court, he/she will lose, and you will end up paying all court and legal fees.

Find a contract attorney.
Respectfully I disagree. Math book says:
Fraction
Decimal
Percent
1/100​
0.01​
1%​
1/20​
0.05​
5%​
1/10​
0.1​
10%​
1/5​
0.2​
20%​
1/4
0.25
25%
0.25 is 25% of a cent, or 1/4 of a cent. If we replace 0.25 with 1 in the contract, and it says "1 cents" it doesn't mean "1 dollar", correct? If "1 cent" is 1 cent, I don't see how "0.25 cents" is "25 cents".
But thank you for your input!
 

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The down side is that BMW FS could really be strict about damage costs, excess tire wear, and not waiving the initiation fees on your next lease, or stick you with a higher money factor and residual the next time around.
 

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Discussion Starter · #11 ·
The down side is that BMW FS could really be strict about damage costs, excess tire wear, and not waiving the initiation fees on your next lease, or stick you with a higher money factor and residual the next time around.
Thanks. That's exactly what makes me think not to put 70,000 miles on the car. While I have lease protection it is very easy to believe that they can hit me hard with extra charges not covered by $5000 that lease protection offers trying to mitigate the problem. Even winning an arbitration is not something that makes me happy considering all the efforts it may take. I don't think that we will put over 45,000 miles but just trying to find out what the other contracts say.
 

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Aviator
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I'd run up a lot of miles on this car just for the sport of F$%&ing with FS. BTW, another BSME, MBA in cost accounting who taught undergraduate calculus. Putz is right (y)
 

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I'd run up a lot of miles on this car just for the sport of F$%&ing with FS. BTW, another BSME, MBA in cost accounting who taught undergraduate calculus. Putz is right (y)
An acquaintance of mine did something like that back in the 1980's. He was in the Navy, stationed in Jacksonville. The Navy split their carrier-based aircraft between Jacksonville and Norfolk-Viriginia Beach, based on the type of aircraft. A lot of aircraft maintainers would end up with a sea tour in the other area. On a sea tour, they'd be a sea half the time. Rather than sell their house, pull the kids out of their school, and have their wives give up their jobs, a lot of the sailors would leave their families at their old duty station and hop back there on weekend when they weren't at sea. Southwest flights were cheap. If you scheduled them right it was $99 round trip.

My acquaintance had a demonically possessed Oldsmobile that was back in the shop with the recurring problem. If they didn't fix it that time, the Florida Lemon Law kicked in and GM would have to buy the car back. They gave him a loaner, maybe to stop the Lemon Law clock, and he had it for weeks. Weeks turned into months. The guy motivated the dealer and GM to buy the car back by loaning the loaner car to his squadron mates for those weekend runs back to Norfolk. The dealer got used to him bringing the loaner car back for oil changes. He called the dealer, saying he was bringing the loaner in for service. The dealer said "Another oil change?"

"Nope, it needs tires." He'd racked up over 50,000 miles on their loaner car.
 

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I also have no law degree, so of course I'll state my opinion :D: Isn't there some overriding precedent that legal issues need to be looked at in light of "reasonableness"? I would think .25 cents per mile is totally unreasonable and a judge (arbitrator) would rule in favor of BMWFS as no reasonable person would believe that price for additional miles in the contract. Most reasonable people would think that a typo was made, especially as common understanding is that BMWFS charges 25 cents per additional mile. Just my .02 cents! ;)
 

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Happily Driving
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BMW has more lawyers and more money than me, henceforth I would consider running up the miles for said purpose of messing with BMW, but with the realistic point of view that in the end, I'm going to end up paying the either 25 cents per mile or attorney fees that far exceed any winnings I would get in court.
 

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I also have no law degree, so of course I'll state my opinion :D: Isn't there some overriding precedent that legal issues need to be looked at in light of "reasonableness"? I would think .25 cents per mile is totally unreasonable and a judge (arbitrator) would rule in favor of BMWFS as no reasonable person would believe that price for additional miles in the contract. Most reasonable people would think that a typo was made, especially as common understanding is that BMWFS charges 25 cents per additional mile. Just my .02 cents! ;)
Winner! Winner! Chicken dinner.
 
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