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  1. #1
    2004 330ci
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    What happens if you return lease way under mileage

    Just wondering what if anything happens if you return a lease way under miles. Say a 3 yr 15000 mile/ year (45000 m) returned with 24000 m?


  2. #2
    ZHPeaked
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    may be wrong, but think they give you a cookie ; )


  3. #3
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    They will get more on resale than anticipated

    my advice is to see what the buyout is and to sell it privatley after that if possible. Would think you could make a few grand if the buyout is standard on all of these cars coming off lease.

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    You've got positive equity...

    With lower miles, the car will (in all likelihood) be worth well more than your end of lease residual value. The dealer will give you back a portion of this positive equity as a trade-in allowance.

    I've got a 2003 330i coming off lease in a few months. Only 23k miles out of 45k mile lease. Have already talked to several dealers, and each is willing to give at least a couple thousand more than my residual. Essentially, the dealer (BMW or whatever brand) will buy-out your lease from BMWFS at the residual cost, give you your trade-in allowance, then resell the car at its KBB retail value. You make a couple thousand, the dealer makes several thousand.

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    Re: You've got positive equity...

    arent the residual values usually overly optimistic??? eg. way higher than trade in or private party value

  6. #6
    corys530
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    sweeeeet!! for the stealer


  7. #7
    corys530
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    they charge you more if you want to but it

    then they would if you turned it in with 45k on it!!

  8. #8
    corys530
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    BUY oops!


  9. #9
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    Not typically on BMWs...

    Residuals on BMWs are typically about spot-on. Most leased cars that are well taken care of (and not over miles) will have some positive equity at the end of term. The exceptions would be the bargain basement leases on some American cars (Dodge, etc.). I've gotten money back in the form of a legitimate trade allowance (not a sleight of hand fudged allowance) on every foreign car I've ever leased.

  10. #10
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    use that into your advantage.

    if the car is worth more as a trade in then the lease buyout price then buy and use it as a trade-in and make money in the interim.

    you can also try to sell the car for what it's really worth and as soon as you have a solid buyer buy the car out and keep the difference.

    that's your money because you didn't use the car as much as you agreed to.-----------------------------------------------------

  11. #11
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    not true...

    the lease buyout is a pre-determined value and it's on your lease agreement. does not matter if you have 1 mile on the car or 100K the buyout price remains the same-----------------------------------------------------

  12. #12
    corys530
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    Re: not true... it was a joke!!


  13. #13
    katmandu
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    Re: use that into your advantage.

    The "buy it" advice would only apply if you do not have to pay sales tax on the transaction. If the residual were $24,000, and your sales tax was 8%, you'd need to make in excess of $2,000 to break even. Add in title fees (the title, legally, does have to pass) and the picture is bleaker.

    If you continue to drive that little, next time take a 10K lease. Your payments will be lower and you can save yourself about a grand over the life of the lease.

  14. #14
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    Nothing. It is Perfectly Fine to return a lease


  15. #15
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    8%!!!... which state has that much????

    -----------------------------------------------------

  16. #16
    cy7878
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    time for a road trip


  17. #17
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    uh.....8.8% here in WA :(


    ///Ryan

    ///2000 540i M Sport 6 Speed Orient Blue

    ///2000 323Ci Convert M Sport 5 Speed Steel Blue


  18. #18
    katmandu
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    Re: 8%!!!... which state has that much????

    California - 8.25%

  19. #19
    katmandu
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    Chicago is 9% and some areas as high as 9.25%


  20. #20
    2004 330ci
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    Re: 8%!!!... which state has that much????

    I live in NH we have no sales tax or income tax.... we get all our revenue from the M*******s who visit (read polute) our state.

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