# Turning in BMW lease under mileage: any benefits?



## Vishster (Mar 3, 2012)

So, I am done with my 3 year lease on a BMW 328 convertible this week and will be turning it in. On order for a new 328 and will lease it. I am 2k under the mileage on a 10k/year. 

Can my under mileage transfer to new lease? Some posters have mentioned that. Not sure how to do it 

Any other options for me?


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## bkun (Aug 14, 2011)

There is no benefit for you. The next owner benefits from a low mileage car.


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## mjsbmw (Jan 5, 2008)

No transfer of miles. Not like roll over minutes!

If the car is pristine, and your car is a highly desirable car for a dealer to retail, a dealer might give you a few dollars to allow them to buy it (as opposed to the "other" bmw store. I was able to do it twice with 328xis that were coming off lease around December timeframe in the Northeast. One car generated $2K and the other generated $1K.


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## Vishster (Mar 3, 2012)

mjsbmw said:


> No transfer of miles. Not like roll over minutes!
> 
> If the car is pristine, and your car is a highly desirable car for a dealer to retail, a dealer might give you a few dollars to allow them to buy it (as opposed to the "other" bmw store. I was able to do it twice with 328xis that were coming off lease around December timeframe in the Northeast. One car generated $2K and the other generated $1K.


Do not understand. Some additional information please.


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## mjsbmw (Jan 5, 2008)

Pm to you.


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## vern (Apr 19, 2002)

mjsbmw said:


> Pm to you.


If you don't mind PM me also TIA
cheers
vern


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## Jon Shafer (Dec 15, 2001)

The standard BMW lease allows for 15,000 miles per year. The only time there could be a "benefit" (e.g., a refund for unused mileage) would be in the case of a person who contracted for additional miles at inception (e.g., 20k mi/year), a lessee who "purchased" extra miles up front, and then only drove 15,000 mi/yr or less. A couple of thousand miles under on a standard 15k lease or a low-mileage (12k or 10k) lease unfortunately does not translate into "cash equity" at maturity... The amount that any particular dealer might bid for your car is the only thing that might vary, although most dealers base their appraisals using the same formulas nowadays. A dealer who is out of used cars to sell might step up a bit more than one that is "heavy" on pre-owned inventory. In the majority of cases the most sensible thing to do is simply turn it in and get another one... If one expects equity in an auto lease, they are setting themselves up for disappointment the overwhelming majority of the time -- unless the particular vehicle they leased is unique/hot/or in short supply (e.g, an off-lease M3). Right now with many new and unsold E9Xs sitting on dealers' lots, it would be a tough proposition to try to get cash out of one, especially with all of the dealer cash/rebates on remaining coupes and convertibles, ...etc. that your used BMW will be competing with buyers for...


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## mjsbmw (Jan 5, 2008)

Jon Shafer said:


> The standard BMW lease allows for 15,000 miles per year. The only time there could be a "benefit" (e.g., a refund for unused mileage) would be in the case of a person who contracted for additional miles at inception (e.g., 20k mi/year), a lessee who "purchased" extra miles up front, and then only drove 15,000 mi/yr or less. A couple of thousand miles under on a standard 15k lease or a low-mileage (12k or 10k) lease unfortunately does not translate into "cash equity" at maturity... The amount that any particular dealer might bid for your car is the only thing that might vary, although most dealers base their appraisals using the same formulas nowadays. A dealer who is out of used cars to sell might step up a bit more than one that is "heavy" on pre-owned inventory. In the majority of cases the most sensible thing to do is simply turn it in and get another one... If one expects equity in an auto lease, they are setting themselves up for disappointment the overwhelming majority of the time -- unless the particular vehicle they leased is unique/hot/or in short supply (e.g, an off-lease M3). Right now with many new and unsold E9Xs sitting on dealers' lots, it would be a tough proposition to try to get cash out of one, especially with all of the dealer cash/rebates on remaining coupes and convertibles, ...etc. that your used BMW will be competing with buyers for...


Jon...what you said makes lots of sense. It is a supply and demand thing!


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## ZoomVT (May 30, 2008)

Not to contradict the experts but I beehive thatif you are x% below your normal allotted miles then you can get bmwfs to give you a credit towards damages. 

it was mentioned in other threads in the past. Some claimed that they were able to get up to 400 bucks in damages waived. I believe the threshold is 10% with a max waiver of $400.

I tried it on my last lease return but I was only 7% below on a 12k/yr lease.

Sent from my SGH-I997 using Bimmer


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## jon330cic (Jul 30, 2005)

Jon Shafer said:


> The standard BMW lease allows for 15,000 miles per year. The only time there could be a "benefit" (e.g., a refund for unused mileage) would be in the case of a person who contracted for additional miles at inception (e.g., 20k mi/year), a lessee who "purchased" extra miles up front, and then only drove 15,000 mi/yr or less. A couple of thousand miles under on a standard 15k lease or a low-mileage (12k or 10k) lease unfortunately does not translate into "cash equity" at maturity... The amount that any particular dealer might bid for your car is the only thing that might vary, although most dealers base their appraisals using the same formulas nowadays. A dealer who is out of used cars to sell might step up a bit more than one that is "heavy" on pre-owned inventory. In the majority of cases the most sensible thing to do is simply turn it in and get another one... If one expects equity in an auto lease, they are setting themselves up for disappointment the overwhelming majority of the time -- unless the particular vehicle they leased is unique/hot/or in short supply (e.g, an off-lease M3). Right now with many new and unsold E9Xs sitting on dealers' lots, it would be a tough proposition to try to get cash out of one, especially with all of the dealer cash/rebates on remaining coupes and convertibles, ...etc. that your used BMW will be competing with buyers for...


This makes sense. What about more than a few thousand miles?

We'll be turning in a 135i Convertible with only about 20K miles on a 3yr/36K lease and replacing with another BMW.


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## Jon Shafer (Dec 15, 2001)

jon330cic said:


> This makes sense. What about more than a few thousand miles?
> 
> We'll be turning in a 135i Convertible with only about 20K miles on a 3yr/36K lease and replacing with another BMW.


It all depends on where your residuals are relative to ACV (Actual Cash Value).

I wasn't in the car business 3 years ago, but I suspect that the residuals were fairly high given the desperation of automakers to move product back in 2008 & 2009. Ten years ago the lease penetration was much higher than it seems to be today, meaning very few off-lease cars being remarketed (today), so you car should have good value due to the current shortage of CPOs.

:dunno:


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## BMWofBloomfield (Nov 7, 2008)

The full $400 credit towards lease end damage is when your 25% under your contract miles. ie:

returning with 21,000 miles when you contracted for 30,000 miles.


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## jon330cic (Jul 30, 2005)

Thanks Jon & Ivan - these are both very helpful!


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## Wardman (Aug 27, 2011)

Mercedes used to lease where you could buy miles up front, and if you were under mileage, they would write you a check when you turned the car in. That was nice!

I guess the option to buy up miles at a reduced rate during your lease is a nice option, but I'd buy up front if I could get it back, but I'm probably in the minority.


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## ZoomVT (May 30, 2008)

Ahh. Thanks for the clarification on the 25% threshold 

Sent from my SGH-I997 using Bimmer


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## Justin T (Oct 10, 2006)

YMMV...

I turned in the M3 with just under 23K miles on a 30K limit and got the $400. Same thing with the Z4. I think they give you a little leeway if you a "frequent customer" so to speak.


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## ctorrey (Mar 17, 2007)

Justin T said:


> YMMV...
> 
> I turned in the M3 with just under 23K miles on a 30K limit and got the $400. Same thing with the Z4. I think they give you a little leeway if you a "frequent customer" so to speak.


I turned my previous e90 with 18k on a 30k limit in Dec '10 and got $500 towards damages ($600 for very light scratches under the front bumper). They didn't comment/notice to two tire bubbles, but the car was pristine other than those blemishes. The $100 balance would have been waived had I leased or ordered another car before/at turn in (Didn't do this until 5 months later).


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## tagheuer (Jun 10, 2004)

I have no damages, and will be turning in 2 months early and under mileage

(tires are about to go and can't continue driving)

Can I apply the credit towards the dispo fee?


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## ctorrey (Mar 17, 2007)

tagheuer said:


> I have no damages, and will be turning in 2 months early and under mileage
> 
> (tires are about to go and can't continue driving)
> 
> Can I apply the credit towards the dispo fee?


If you lease another BMW within 6 months, they will waive the dispo fee.


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## tagheuer (Jun 10, 2004)

ctorrey said:


> If you lease another BMW within 6 months, they will waive the dispo fee.


how does this occur in practice? Does BMW wait 6 months to charge you the dispo fee?

I am going to turn in early, will be under mileage, and want my $3200 in MSDs back...


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