07-11-2013, 09:46 PM | #1 |
Major
369
Rep 1,424
Posts |
M5 Leasing - Saving by Purchasing Extra Miles?
I started crunching some numbers with my upcoming lease and realized that when leasing a vehicle in the M5 price range, you can actually save money by going with the 10,000 mile/year option and purchasing the extra miles up front. The savings become more as the MSRP goes up, since the cost per extra mile is fixed. It's not much, but interesting , nevertheless.
For example, with my order, that 1% extra residual you gain for 2,000 fewer miles (i.e. 10,000 vs 12,000/year) leads to a monthly cost reduction of ~$38. $38 x 36 months = $1368. 6,000 miles (i.e. 2,000 miles/year x 3 years) x $0.2/mile (late cost) = $1200. If you purchase the miles earlier (at $0.15/mile), you pay $900 for 6000 miles. So, possibly ~$450 savings. If you go from 15,000 miles/year (50% residual) to 10,000 miles/year (53% residual) you pay ~$110/month less or $3960 total. 15,000 mile x $0.2/mile = $3,000. At $0.15/mile = $2,250. So, ~$1,700 savings. Not huge savings, but it might be a good idea for some. Thoughts?
__________________
2017 X5M - Current
2017 F31 Wagon - Current 2014 M5 ZCP - Retired 2011 135i Coupe - Retired 2007 335i Sedan - Retired |
07-12-2013, 08:44 AM | #2 |
Lieutenant Colonel
124
Rep 1,840
Posts
Drives: '14 M5 CP Dinan Stage 2
Join Date: Jun 2013
Location: Houston, Tx
|
Thought same switch from 15k to 12k because of the 2% bump in res. plan on buying after the fact @.17 cents.
|
Appreciate
0
|
Post Reply |
Bookmarks |
Thread Tools | Search this Thread |
|
|