I plan to buy my Mini at the end of the least in 6 months. By that time, I am likely to be a couple of thousand miles over the least allotment. The salesman at the dealership say I will still owe that amount unless I purchase the car early, before I go over. This doesn't seem correct to me — I have purchased my wife's Honda and my son's VW which were both over the lease mileage, and since I purchased it the mileage was irrelevant.

Is he just trying to con me into buying it before lease end? Of course, the remaining 6 payments would be added on. This seems like BS to me.

 

Doesn't make much sense to pay them for miles overage on a car you buy from them. You can always just walk away. You can also call MINI finance, usually if you have to buy miles they will sell them a bit cheaper that way. Ask them the question as your salesman is not really knowledgeable.

Why buy out? With our F55 the buyout price was not any bargain, I could buy the same car for a lot less on the open market.

 

I checked with Mini finance. It's BS. As expected, if you go over on mileage and buy the car the mileage overage is waived.

 

The buyout price is the same as any certified pre-owned Mini around here. And at least I've driven it myself for 3 years and have kept it well-maintained and have had zero issues with it. So I know what I'm getting.

 

So, here's the deal... MINI financial services has a thing called dynamic pricing that customers are not supposed to know about. It's a bit complicated but, basically, if a MINI dealer wants to purchase your car at lease end, they transmit your car's VIN and mileage to MINI and MINI sends them a dynamic price, which is usually much lower than the residual listed on your lease documents. HOWEVER, if the lease return is sold back to you, or anyone in your household, there is a chargeback to the dealer and the dynamic price is basically cancelled and the dealer has to pay the residual, plus, I believe, a modest penalty on top of that.

MINI doesn't want you to buy your car. MINI wants to lease or sell you another car.

But, as you say, it has value to you because you know the car's history. And, should you decide not to buy your car, the extra miles can be purchased, PRIOR TO LEASE TURN IN, for a discounted amount. If you buy your car, the overage of miles should disappear.

It is the rare circumstance where buying a car at lease end for the residual makes good business sense. Your situation may be unique in that the numbers work for you. But crunch those numbers hard and compare them to what a dealer can do for you on a new lease or purchase, for a brand new MINI with full warranty and scheduled maintenance and all the rest.

 

One more thing. IF you decide maybe a new MINI, lease or purchase, is a possibility for you, AND IF your current MINI is a car your dealer wants to acquire for his/her resale inventory, THEN your dealer will be able to buy your car for the dynamic price. So, let's say the residual on your car is $20,000, and let's say your dealer can buy your car (if he doesn't sell it back to you) for, say, $15,000. Let's say, after reconditioning costs, your dealer thinks your car will sell to another customer for, say, $20,000. Well then, there might just be a bit in play between his purchase + reconditioning + cost of reselling, and what he will make as a profit when your car is resold to someone else. Let's say there's a thousand or two that can be used to sweeten a deal on your next new MINI. This rarely happens... but maybe in your case it could??? I'd sit down with the Sales Manager and review all possible options before I definitely decided to buy that lease return for the full residual, plus tax plus DMV... one never knows unless one asks the right person the right questions in the right way.

 

Normally, I’d agree. My plan was to lease a new one. The issue that came up is my company moved twice as far away from my home and, even going into the office 3 days a week, I’d go way over any lease available. The old office, it was no issue. So I need to purchase. I cannot afford to purchase a new Mini for >10k more than my residual. So my only options are to buy it or return it and get a different (cheaper) car. I’m looking into that, too, although I really like Minis.

 

Right. Understand and Agree.

Other consideration, of course, is that putting all the extra miles on your currently leased MINI opens the door for possible increases in repair/maintenance costs down the line. That's an unknowable number, whereas the cost of a new lease, plus paying for extra miles at lease end, can be quantified on the front end.

It might be an interesting exercise to calculate the total miles you think you'll put on a car over the next 3 years, then, using the numbers from a higher mileage allowance lease, add the cost of purchasing extra miles just prior to lease return in 3 years.

It's a "rational risk taker" exercise. You know what it will cost to buy your current car for residual plus taxes and fees. You know what tires and oil changes will cost. You can't know what other mechanical issues might emerge, but some of that risk can be mitigated by purchasing an over-priced extended maintenance/mechanical breakdown product, which often won't cover the things that are most likely to fail after warranty. Or, maybe, since you've been gentle on your MINI thus far, you will enjoy 3 more years of happy, low-cost motoring.

3 years from now, what will your MINI be worth? Depreciation eats away at whatever equity you might build through a lease end purchase.

I've done this every way possible. I've bought new, leased new, bought certified pre owned, done low mileage leases and high mileage leases...My conclusion is buy and drive it until the wheels fall off, in the long, long run, is the most cost-effective approach to vehicle ownership. But only if the car is a tank with easily replaced, moderately priced components. There are few such cars being made these days!!

But then, I'm a new car smell addict, so I have all sorts of nonsensical rationalizations for getting a new car frequently. Like any addict, I tell myself I can stop any time I want to,,,

Do all the math, always remembering that life's too short not to drive what you love...