[xeondavis]

The mileage overage is expected. On my last 2 cars, I bought them and I got hosed on the resale value. I tend to switch cars every 2 - 2 1/2 years.

So now, while I still have some time to think, what's the best approach I can take to minimize the lost.

Option 1.
I guess I can buy the car and don't have to worry about the mileage. Not sure in this case if the dealer is willing to lower the buyout or not?

Option 2.
Start buying the overage now while it's only $.15 / mile. And return the car when the lease ends, and possibly lease another one.

Option 3.
Return the car when the lease ends and lease another car, and pray that the dealer forgives the overage. Is this possible?

Any other options?

Besides the mileage, the car is in really a good condition. It's 2008 e92 328i. Let me know if you need more information.

thank you

[SteveMD]

I doubt the dealer will overlook 20K miles. A scratch or one marginal tire maybe but not 20K overage.

You missed an option which is to try and unload the car yourself.

[roadkillrob]

Get in there and negotiate now - worst case scenario you can buy it and trade it in, so you know where your at - try to negotiate a better deal. Your biggest issue might be the residual being high still since you leased before the world ended, so you buyout may be way higher than the worth of the car.

Talk to them now and see if you can get out of it before you put even more miles on it!

[xeondavis]

Thanks guys. Yes I kinda expected this would happen when I bought the car. On my last car, I bought an 06 325i and I put 48K in 2 years. When I sold it, 2 years later, I took a lot of hit.

So this time I'm doing a lease. The strategy is, even if I have to pay the $.15/mile, the hit would be smaller than if I had bought it in the first place and sold it 2 years later.

Maybe on these weekends I'll go talk to a dealer and see what they say.

I can't put this car in a garage. I know it's only a 328i, but it drives and handles so well. I guess that's why I've driven it so much.

[blue2fire]

Originally Posted by xeondavis

The mileage overage is expected. On my last 2 cars, I bought them and I got hosed on the resale value. I tend to switch cars every 2 - 2 1/2 years.

So now, while I still have some time to think, what's the best approach I can take to minimize the lost.

Option 1.
I guess I can buy the car and don't have to worry about the mileage. Not sure in this case if the dealer is willing to lower the buyout or not?

Yes, they will negotiate with you on the residual. Everybody here gets them reduced by a noteworthy amount before buying their car out.

Originally Posted by xeondavis

Option 2.
Start buying the overage now while it's only $.15 / mile. And return the car when the lease ends, and possibly lease another one.

I don't know if paying an extra $3000 seems like a good idea if you are also interested in keeping the car (Option One).

Originally Posted by xeondavis

Option 3.
Return the car when the lease ends and lease another car, and pray that the dealer forgives the overage. Is this possible?

20,000 Miles is a lot of extra mileage. You definitely need to consider alternatives (Read: This looks like wishful thinking)

Originally Posted by xeondavis

Any other options?

Besides the mileage, the car is in really a good condition. It's 2008 e92 328i. Let me know if you need more information.

thank you

What is the residual?

I like Option One better. You should have concluded by the last car that leasing was not a good idea with the mileage you put on the car(s).

[xeondavis]

To find out the exact buyout, is it wiser to talk to dealers first, or to talk to BMWFS first? And the timing, is it better to talk in a few months or now?

I'll post the residual when I get home.

thank you.

[blue2fire]

Originally Posted by xeondavis

To find out the exact buyout, is it wiser to talk to dealers first, or to talk to BMWFS first? And the timing, is it better to talk in a few months or now?

I'll post the residual when I get home.

thank you.

Only the dealers can negotiate the residual with you. BMWFS is either going to bounce you off to them or give the whole "we don't negotiate" crap.

I would suggest you get on finding a solution from now so you don't get in a rush while the lease period comes to an end.

[mojojosung]

I think you can also visit different dealers around your area and see who's willing to give you the best deal on residual reduction

[shift330]

Just buy it out and run it till it blows!

[ejazbmw]

maybe leasing isn't for you? kinda dumb im sorry but if you know your going to put a lot of miles on in two years you have have financed or something

[Bartman619]

Option 1 is starting to look good.

[John 070]

Pay for the overage in the least costly way, if they will take 15 cents then stop driving, pay 3k, and be done with it. 3k is something, but it's not the end of the world. The key is to stop the wasteful cycle, don't lease. Get a less expensive car and make any extra money you have grow.

[Tschuss]

Originally Posted by John 070

Pay for the overage in the least costly way, if they will take 15 cents then stop driving, pay 3k, and be done with it. 3k is something, but it's not the end of the world. The key is to stop the wasteful cycle, don't lease. Get a less expensive car and make any extra money you have grow.

I agree, it's a gamble worth taking. If you turn it in without buying @ 15 cents you'll pay more than 15 cents. If you try to buy it out without having bought more miles, they'll likely stick it to you.

I'm in the opposite situation. Due to a material change in communiting distance, I'll be under by 10k miles when the lease is up. If I negotiate a buyout, they'll stick it to me then too because the miles are low, thus a higher value to BMW.

-B

[John 070]

Originally Posted by Tschuss

I agree, it's a gamble worth taking. If you turn it in without buying @ 15 cents you'll pay more than 15 cents. If you try to buy it out without having bought more miles, they'll likely stick it to you.

I'm in the opposite situation. Due to a material change in communiting distance, I'll be under by 10k miles when the lease is up. If I negotiate a buyout, they'll stick it to me then too because the miles are low, thus a higher value to BMW.

-B

My point is we all do care about money. But if we're bleeding it, stop the bleeding. 3k is a lot, but I lost many times that on Bank of America stock. Out of nowhere RIM went up over $11/share after the close, and I made a bunch of times 3k as well on paper. So 3k is something, but not the end of the world. If there's a hole, plug it, and don't let it keep happening. The OP seemed to imply that he knows he gets into jams with cars, but that doesn't have to happen imho, at least not for a fourth time..

[mtpdave]

You really shouldn't sweat this.. you are still way ahead than if you had bought the car and would be trying to resell it, turning it in or buying it out. Like 7 or 8 grand ahead.

I say you made the right choice. You just have to pay a little for what you used. Buy the miles or negotiate the turn in (only within 60 days of lease end)

If you do consider buying:
BMWFS will deal. Get your facts first. (edmunds trade in #'s are close enough) The fs rep will ask you if you have spoken to the dealer. Say verbatim " I do not want to deal with the dealer" they will offer something dumb, then you play bewildered and mention that the trade in and auction prices are much less than their offer. They will lower it more and then more. Then wait until less than 30 days of your contract end. The number should go lower. Good Luck!

[jlstyle]

Originally Posted by xeondavis

To find out the exact buyout, is it wiser to talk to dealers first, or to talk to BMWFS first? And the timing, is it better to talk in a few months or now?

I'll post the residual when I get home.

thank you.

I think buyout price is listed in your "my account" in BMWUSA.com, maybe not, I forgot, but buyout price or your payoff is listed in there.
If not, just call bmw financial and asked them, they will tell you the exact amount as of today.

And 20K+ excessive miles aren't acceptable and you will have to pay for it.
If I were you I would turn in the car 3 months prior (not sure bmw accepts it but benz and other companies do) for another lease to minimize the over mileage. That should save you about 5k miles I guess?
I think you should just buy the used cars and sell it after two years to take less depreciation.

Your habit of swapping cars every 2 years with high mileage driving = $$$$$
There's no way to get around it. You just have to pay to play.

[xeondavis]

a lot of good inputs. I guess they all boil down to

one,
buy it out at the end of the lease. will have to somehow negotiate a reduced buyout, or

two,
start paying the mileage at 15 cents and return the car at the end of the lease

Option one I guess is wiser for now. I have friends who got laid off and it just doesn't feel right to drive a new car when we go out together. Option two opens the door for us to get a bigger car. My wife and I have been eyeing a slightly bigger car for our scuba gears and tanks when we go diving. A coupe is just a bit too small to fit all the gears.

I will talk to my wife some more and let you guys know what we decide. Thank you all. Great board and awesome folks !!

[dreamk]

DAMN!

[addy85]

Originally Posted by dreamk

DAMN!

+1, why lease if you drive that much lol

[John 070]

Originally Posted by addy85

+1, why lease if you drive that much lol

I'm gonna guess cash flow. Up until 1 1/2 years ago, people didn't find it strange to buy an expensive house and put only 5% down (heck everyone I know has a jumbo mortgage, be doubtful at our age and location there would be any other way). People still don't seem to think anything strange about putting nothing more than fees down, and driving off with a 50k car. But BMW says otherwise, and they want less people to lease as that number is now up to 65%. But the way that they've jacked up pricing, doubtful that's gonna happen short of them turning people down.

[broker88]

Originally Posted by ejazbmw

maybe leasing isn't for you? kinda dumb im sorry but if you know your going to put a lot of miles on in two years you have have financed or something

Don't know about BMW but only vehicles I ever leased were GM and they always ignored slight dings, thousands of miles in overage, trade in of vehicle before lease expired, etc.