Question about adding miles to a lease. . .

dizman7 · 12-13-2009, 12:15 PM

Actually my friend brought this up as a good point.

I was looking into how much it was to add miles to my currect lease, it was more reasonable than I thought it would be.

My question is, if you add miles to the lease, does your residual value at the end of the lease go down by the amount you paid for those miles?

Example: I'll keep this to simple numbers. Say my residual value at the end of lease is $40,000, and I add $1000 worth of miles to it right now. When my lease is up, would my residual value then be $39,000? Or would it stay at $40,000, thus kind of being "double-charged" for the extra miles I would put on the car?

needspeed · 12-14-2009, 08:03 AM

Residual is calculated based on useage (miles) so you are paying for the extra miles to offset the additional usage, thus the decrease in value of the car when it is turned in. So for you the residual would be what is in your contract but for BMW they would be able to sell the car at a lower price due to the higher milage then was originally committed to......Steve

12-13-2009, 12:15 PM	#1
dizman7 Second Lieutenant 71 Rep 296 Posts Drives: 99 E36 M3 Cabio Join Date: Dec 2008 Location: Phoenix, AZ iTrader: (0)	Question about adding miles to a lease. . . Actually my friend brought this up as a good point. I was looking into how much it was to add miles to my currect lease, it was more reasonable than I thought it would be. My question is, if you add miles to the lease, does your residual value at the end of the lease go down by the amount you paid for those miles? Example: I'll keep this to simple numbers. Say my residual value at the end of lease is $40,000, and I add $1000 worth of miles to it right now. When my lease is up, would my residual value then be $39,000? Or would it stay at $40,000, thus kind of being "double-charged" for the extra miles I would put on the car? __________________ SOLD - 08 E92 ///M3 (bought a house) NEW - 99 E36 ///M3 Convertible
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12-14-2009, 08:03 AM	#2
needspeed First Lieutenant 10 Rep 319 Posts Drives: 10 X5 M/05 F430/12 CTS-V Coupe Join Date: Jan 2009 Location: Middle of nowhere IOWA iTrader: (0)	Residual is calculated based on useage (miles) so you are paying for the extra miles to offset the additional usage, thus the decrease in value of the car when it is turned in. So for you the residual would be what is in your contract but for BMW they would be able to sell the car at a lower price due to the higher milage then was originally committed to......Steve __________________ 10 BMW X5 M Silverstone w/Black on Black interior - Loaded 12 CTS-V Coupe Thunder Gray - Loaded 13 Ford GT500 (650HP Priceless!!!!) as soon as can be delivered 05 F430 F1 - Giallo 08 BMW M3 Interlagos Blue Metallic - DCT (Traded)
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