# lease 10k vs 12k



## wulfet (Jun 16, 2011)

Is the difference in monthly payments between a 10k and 12k lease purely a factor of a difference in residual value, or is there also a "charge" for going up in annual miles (aside from residual value)? Thanks.


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## JustinTJ (Jun 1, 2011)

I'm fairly certain the residual is the only thing affected, but we'll see what the vets say.


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## mrMTB (Jan 4, 2009)

From what I've read, the published residuals are for 15k miles. You add 2% to the residual for 12k miles and and additional 1% for 10k miles. Modeling my upcoming purchase, the difference between 10k and 12k miles was about $17/mo, or about $600 over the life of the lease.


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## Elias (Jun 26, 2005)

mrMTB said:


> From what I've read, the published residuals are for 15k miles. You add 2% to the residual for 12k miles and and additional 1% for 10k miles. Modeling my upcoming purchase, the difference between 10k and 12k miles was about $17/mo, or about $600 over the life of the lease.


Well $600 is definitely worth it in my book, I did the 12,000 miles for my lease and it was way too much. My next lease will be 10,000 miles for sure .


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## SARAFIL (Feb 19, 2003)

wulfet said:


> Is the difference in monthly payments between a 10k and 12k lease purely a factor of a difference in residual value, or is there also a "charge" for going up in annual miles (aside from residual value)? Thanks.


You pay extra because of the lower residual, but then you pay slightly less interest because of the lower residual.


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## [email protected] BMW (Aug 2, 2010)

remember you can always do a midterm mileage adjustment from 10k to 12k, or 12k-15k etc. during the lease term


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## Display_Name (Apr 14, 2010)

[email protected] BMW said:


> remember you can always do a midterm mileage adjustment from 10k to 12k, or 12k-15k etc. during the lease term


You can also buy additional miles at a reduced rate up until four months before the lease is up.

For my recent Z4 lease

1) Bumping up to a 12K/yr from 10K/yr would have effectively cost me $0.189 per mile. (Payment bumped by $31.5/month for 24 months divided by 4K add'l miles, have to buy all 4K miles.)

2) Early buying add'l miles before the final four months of the term would be at a rate of $0.16 per mile, but could buy just as many as needed.

3) Buying add'l miles at lease end for $0.20 per mile.

The numbers for any lease could be analyzed the same way.


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## dtc100 (Jan 24, 2011)

[email protected] BMW said:


> remember you can always do a midterm mileage adjustment from 10k to 12k, or 12k-15k etc. during the lease term


Would a bump at midterm be a little more expensive than getting it from the start of the lease?


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## SARAFIL (Feb 19, 2003)

dtc100 said:


> Would a bump at midterm be a little more expensive than getting it from the start of the lease?


You can very easily run your lease using the 10k, 12k, and 15k residuals to see how much the marginal rate is for the miles going from 10k to 12k, and 12k to 15k... and then compare this to the midterm cost of $0.16 per mile.

In my case, bumping from 10k to 12k would cost me $0.126 per mile for the extra 2k per year. These extra miles are not refundable if I don't use them.

Bumping from 12k to 15k would cost me $0.172 per mile for the extra 3k per year. These miles are also not refundable if I don't use them.

Anything above the 15k would have been $0.15 per mile if purchased upfront and is fully refundable if not used.

Based on this math, I did 12k miles per year as it was a no-brainer to buy the extra 2k miles per year upfront as I will certainly use them. I'll probably end up doing 15k-17k per year, but based on the marginal rate for 15k per year on my lease I figured it was better to take a "wait and see" approach and buy them later.


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## dtc100 (Jan 24, 2011)

SARAFIL said:


> You can very easily run your lease using the 10k, 12k, and 15k residuals to see how much the marginal rate is for the miles going from 10k to 12k, and 12k to 15k... and then compare this to the midterm cost of $0.16 per mile.
> 
> In my case, bumping from 10k to 12k would cost me $0.126 per mile for the extra 2k per year. These extra miles are not refundable if I don't use them.
> 
> ...


Good to know thanks.


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## JustinTJ (Jun 1, 2011)

dtc100 said:


> Good to know thanks.


+1 to the thanks.

Seriously, thanks a ton you guys. In the process of putting one together atm, and that makes me a happy man. A little more leeway.


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## wulfet (Jun 16, 2011)

*Adding miles midterm*

Thanks for the answers, they've been very helpful.

One last question, if I change my miles per year midterm, they can apply to the total used miles during the lease term? Also, do residual values change if you add miles per year midterm?

Example: 10k, 2 year lease
Year 1 - End up using 12.5k miles, anticipate using up to 12.5k next year
Midterm - Change to 15k/year lease, so total allotted miles for the 2 yr lease would be 25k
Year 2 - End up using 12.5k miles
So there would be no need to pay for the extra miles? Or would those miles bought at midterm only apply to year 2?

Thanks.


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## mclaren (Jan 5, 2005)

wulfet said:


> Thanks for the answers, they've been very helpful.
> 
> One last question, if I change my miles per year midterm, they can apply to the total used miles during the lease term? Also, do residual values change if you add miles per year midterm?
> 
> ...


You just buy miles, in your example 5,000 at $.16 plus tax. You had leased for 20k miles, now you have 25k. You can just have the cost tacked on to your monthly lease payment or pay the $800 plus tax at up front. If you tack it on for 12 months it would be $66.67 per month plus tax. It is a little known fact that if you buy the car from BMWFS during or at the end of the lease you get back all the money you've paid for the extra miles except for the tax of course. I hope no one disputes this because I just did it.


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## ZoomVT (May 30, 2008)

mclaren said:


> You just buy miles, in your example 5,000 at $.16 plus tax. You had leased for 20k miles, now you have 25k. You can just have the cost tacked on to your monthly lease payment or pay the $800 plus tax at up front. If you tack it on for 12 months it would be $66.67 per month plus tax. It is a little known fact that if you buy the car from BMWFS during or at the end of the lease you get back all the money you've paid for the extra miles except for the tax of course. I hope no one disputes this because I just did it.


thanks for the extra piece of info.

can you clarify the process of adding miles? from previous posts it appears that it is possible to readjust the lease from a 10k/yr to a 12k/yr lease. Which then results in a cheaper per mile cost than just buying them at the .16/mile rate.

So is there a way to a do a midterm readjustment of miles? The question from the OP is valid. If this is the case how does residual get calculated? does it at all? 
I can see how this could be a loophole on buying a lower mile lease and run it by ear, or just readjust and take advantage of a higher residual.


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## dtc100 (Jan 24, 2011)

ZoomVT said:


> thanks for the extra piece of info.
> 
> can you clarify the process of adding miles? from previous posts it appears that it is possible to readjust the lease from a 10k/yr to a 12k/yr lease. Which then results in a cheaper per mile cost than just buying them at the .16/mile rate.
> 
> ...


It is not changing from a 12k lease to a 15k lease, just prepay for more miles based on your projected overage at $0.16/mile, instead of paying $0.20/mile penalty for excess miles at the lease turn-in.


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