# Buy Miles Upfront or Near End of Lease?



## carman26 (Oct 4, 2007)

I drive about 18,000 miles per year and have usually leased, building in the extra miles in the lease at the $0.15 per mile.

However, I have read often on Bimmerfest, that it may be better to deal with the mileage later in the lease eventhough you pay a slightly higher $0.16 per mile. The reasons being 1) what if you don't use the miles, or 2) something happens to the car (e.g. accident/totalled, you turn the car in early, etc.). Taking this to the extreme, is it always better to do the minimum mile lease (10,000/year) and deal with the mileage later to get a better residual, etc. upfront?

If you pay upfront, you pay taxes on the miles---not sure if you do when you buy them at $0.16 per mile later.

On the plus side of buying upfront, 1) the miles are cheaper by a penny a mile, and 2) you can sell them back to BMWFS for full value as long as you do it no later than 6 months (maybe 4 months---not sure) from the end of the lease.

What are everyone's thoughts on buying upfront or paying later?


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## Calif65GM (Mar 27, 2005)

I bought upfront and it's turning out that I won't need it now probably. I'll get a refund though. If it's totalled or turned-in early, you still get it back, I believe.

In Cali, I think you pay sales taxes regardless if it's upfront or at the end.

Going with 10K to get the higher residual is an interesting concept. I have to think that BMWFS has ran the numbers; so that, the residual decreases balances out the 16 or 20 cents/mile at lease end. Otherwise, why would people lease for any other mileage allowance besides 10K/yr. :dunno:


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## chrischeung (Sep 1, 2002)

Calif65GM said:


> I have to think that BMWFS has ran the numbers; so that, the residual decreases balances out the 16 or 20 cents/mile at lease end. Otherwise, why would people lease for any other mileage allowance besides 10K/yr. :dunno:


You're correct - they do run the numbers. It works out to be a couple hundred this way or that - nothing worth sweating over.

I generally go low on mileage, in case I sell the lease, or my personal circumstances change. In this environment...


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## gosox (May 22, 2007)

chrischeung said:


> i generally go low on mileage, in case i sell the lease, or my personal circumstances change. In this environment...


+1


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## want_a_7 (Apr 4, 2006)

Run the numbers on the car to see what the miles will cost you. I was looking at an M5 lease, where the 10k per year lease residual was 3% higher than the 15k lease. This car had a sticker price of 99k, so the 3% represented about $3,000. To buy the additional 10,000 miles mid term on a 24 month lease would cost $1,600 so it defiantly would have been advantageous to me to go for the lower mileage lease. On a $40,000 car the numbers would work very differently. I did do a mid term adjustment on my current car, and sales tax was charged on the amount that I did buy (in Arizona), so the tax issue would have been the same either way. On the mid term adjustments, there is no refund if you do not use all of the extra miles. On an upfront purchase there is a refund on the miles you do not use (after the 15k per year built in).


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## kyfdx (Aug 4, 2003)

want_a_7 said:


> Run the numbers on the car to see what the miles will cost you. I was looking at an M5 lease, where the 10k per year lease residual was 3% higher than the 15k lease. This car had a sticker price of 99k, so the 3% represented about $3,000. To buy the additional 10,000 miles mid term on a 24 month lease would cost $1,600 so it defiantly would have been advantageous to me to go for the lower mileage lease. On a $40,000 car the numbers would work very differently. I did do a mid term adjustment on my current car, and sales tax was charged on the amount that I did buy (in Arizona), so the tax issue would have been the same either way. On the mid term adjustments, there is no refund if you do not use all of the extra miles. On an upfront purchase there is a refund on the miles you do not use (after the 15k per year built in).


Are you sure you can buy miles for an M5 for the same $0.16/mile?

I don't know... just wondering..


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## pilotman (Feb 2, 2006)

the lease on my wife's 2006 X3 ends in about 6 months, and we purchased too many miles...(15,000 per year).

So we will be about 10,000 miles UNDER.....

We hope to replace the X3 with a 2007 CPO 530xit....

So, what happens at lease turn in, I have searched and received conflicting information....

Some posts imply that if you have a 15k mile per year lease, you do NOT get a check for unused miles, but sometimes you get a credit toward excess wear and tear...

Will we receive a check for the unused miles, or simply a credit towards excess wear and tear? (the car is in perfect condition, so wear and tear is not an issue)

Does it matter if we buy a CPO from a dealer? 

(I also have about $2,800 coming to me for the MSDs)....


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## pilotman (Feb 2, 2006)

pilotman said:


> the lease on my wife's 2006 X3 ends in about 6 months, and we purchased too many miles...(15,000 per year).
> 
> So we will be about 10,000 miles UNDER.....
> 
> ...


forget it, just read my lease, I am not entitled to ANY refund because it is a 15,000 mile per year, not a "high mileage". Oh well, they'd better be really nice to me at lease turn in since it will have far less than 47,000 miles on it.

Can I get a disposition fee waived if I buy a CPO? Anyone had luck with this?

(Carman, sorry to threadjack, learn from me, I was a dumba$$ and bought too many upfront and am now losing them).

As others have noted, it would be nice to be flexible, start low and buy more as you need them, in these times you may find yourself wanting to unload the car on swaplease or something.....keep your options open.


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## want_a_7 (Apr 4, 2006)

kyfdx said:


> Are you sure you can buy miles for an M5 for the same $0.16/mile?
> 
> I don't know... just wondering..


Yes, it does seem odd, my additional mid term miles were $.21 on the 7 series that cost less.


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## Elias (Jun 26, 2005)

When I was leasing my car I asked the Finance person if I get refunded for miles not used he said no. I then went with 12000 miles a year instead 15000, I can always buy more down the line. I have four other cars so its not an issue with me, I doubt I will use the 12000 miles anyway.


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## Calif65GM (Mar 27, 2005)

Refunds only apply to excess miles purchased upfront above the standard 15K/yr lease.


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## kyfdx (Aug 4, 2003)

pilotman said:


> forget it, just read my lease, I am not entitled to ANY refund because it is a 15,000 mile per year, not a "high mileage". Oh well, they'd better be really nice to me at lease turn in since it will have far less than 47,000 miles on it.
> 
> Can I get a disposition fee waived if I buy a CPO? Anyone had luck with this?
> 
> ...


The disposition fee is with BMWFS... The key to getting it waived is to have the next car financed or leased through BMWFS.. As long as you finance your next car with them, then the disposition fee should be waived....

Don't feel bad about not using all your mileage... You only paid around $800 to get the extra 9000 miles on your 15K/yr lease vs. a 12K/yr lease... Less than $0.10/mi.... Not everyone is Nostradamus..


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## dianuh (Dec 22, 2008)

are all the cost per mile the same for all cars? what is it for an m3?


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## bmwwizkid (Jan 26, 2009)

To answer a bunch of questions at once in here...

If you contract 18k miles/year and don't use all of them, you'll get refunded for anything over 15k miles because 18k is the start of what is considered to be a "high mileage" lease. For example... if you have a 2 year contract and did 18k a year and only used 30k miles... you could get 6k back at .15/mile.

If you are in a state that charges sales tax you will get charges sales tax on the miles you purchase during the lease if you decide to do the .16/mile.

.16/mile instead of .20/mile on all non-7 series cars if you're buying miles early

.22/mile instead of .25/mile on all 7 series cars if you're buying miles early

If you don't use all the mid-term miles you buy... they are not refunded. you can credit them towards your final bill. This includes disposition fee, remaining payments (if you turn it in early), late fees, etc.


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## BMW_Fanboy (Jan 8, 2009)

I was told (by my CA) that if you bought miles after signing the papers, that any unused miles would be credited back to you at the end of the lease. Is this not true?!


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## adrian's bmw (Feb 14, 2003)

BMW_Fanboy said:


> I was told (by my CA) that if you bought miles after signing the papers, that any unused miles would be credited back to you at the end of the lease. Is this not true?!


Under MAP (mileage adjustment program), mileage purchased after contract signing is not refundable.

Your CA has buying miles over and above the 15k limit (which are refundable, if not entirely driven) confused with MAP.


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## BMW_Fanboy (Jan 8, 2009)

Ahhh ok. My lease is for 15000 miles, but I know I will be going over a bit, so I will be buying some miles at one point or another. Better safe than sorry at the end of the lease!


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## Alpine300ZHP (Jan 31, 2007)

pilotman said:


> forget it, just read my lease, I am not entitled to ANY refund because it is a 15,000 mile per year, not a "high mileage". Oh well, they'd better be really nice to me at lease turn in since it will have far less than 47,000 miles on it.
> 
> Can I get a disposition fee waived if I buy a CPO? Anyone had luck with this?
> 
> ...


Hey you and I are alot alike..we are both lawyers and both seem to get the mileage mixed up on our BMW leases. I suggest that you consider what I am doing...I notice that I tend to drive one car much more than the other and usually one car is 15-18k per year and the other is 10-12k per year in mileage. For the first time I decided to stagger my leases where one is a 10k lease and one is a 15k lease. Seems that I am hitting the mark this way...wife drives less than me and it sounds like the same in your family. I am assuming, of course, that the E46 is yours and the x3 is hers.


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## Alpine300ZHP (Jan 31, 2007)

BMW_Fanboy said:


> Ahhh ok. My lease is for 15000 miles, but I know I will be going over a bit, so I will be buying some miles at one point or another. Better safe than sorry at the end of the lease!


You have up to 4 months before lease termination to buy them (correct me if I am wrong Adrian) so I suggest you wait until 5 months prior to lease termination and assess what is cheaper. I will either buy the miles via MAP or trade the vehicle 5 months early. You would be surprised how many times (before this economic slump) it was a wash for me and I could just start over with a new lease at the 5 month mark (sometimes this also gets you out of buying tires). Another trick I have learned is to evaluate the car's value at the point I have reached my mileage limit and then determine what is cheaper....early trade or buy miles.


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## BMW_Fanboy (Jan 8, 2009)

Alpine300ZHP said:


> You have up to 4 months before lease termination to buy them (correct me if I am wrong Adrian) so I suggest you wait until 5 months prior to lease termination and assess what is cheaper. I will either buy the miles via MAP or trade the vehicle 5 months early. You would be surprised how many times (before this economic slump) it was a wash for me and I could just start over with a new lease at the 5 month mark (sometimes this also gets you out of buying tires). Another trick I have learned is to evaluate the car's value at the point I have reached my mileage limit and then determine what is cheaper....early trade or buy miles.


What does it mean to "buy the miles via MAP"? So the .16/mile charge is standard up until 4 months before termination - so there would be no advantage to me adding the extra miles now?

Also, how do you get out of the lease 5 months early without paying for the extra miles? -- Do you mean that it would be cheaper to make the remaining 5 payments than to pay for the extra miles at the end of the lease (assuming that you did not yet go over your mileage allotment?)

If so, this brings up a very interesting point that I may have to consider near the end of my lease!


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