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Heya guys,

I have a BMW on Finance, and I put an agreed fixed mileage when i took out the contract.

Now the Contract was an agreement of 4yrs, however it appears that I will be going over that agreed fixed mileage, BMW charge approx 7p per mile that you're over. So i rang BMW finance advisors about increasing the mileage on my contract, which was £20 just for a quote and then £140 to make the alteration.

However a lovely woman from the BMW finance has sent me an email stating that at the end of my contract, if i wish to part exchange my vehicle and stay with BMW, i don't have to worry about any extra mileage i have, however this isn't mentioned anywhere in my contract agreement.

Any ideas on this?

Some contract info for you:

BMW Select explained. How it works
  • Select your BMW of choice from our BMW model range
  • Decide on a repayment period that’s right for you
  • We agree on your maximum annual mileage
  • We provide a Guaranteed Minimum Future Value (GMFV) for your BMW, which becomes your final payment should you choose to keep your BMW at the end of the agreement
  • We agree a deposit and a regular monthly payment to suit your budget
  • At the end of the agreement you can select from one of the following options:
- Keep the car by paying the optional final payment*
- Part exchange your BMW for a new one**
- Hand the BMW back to us***

*The optional final payment and an option to purchase fee are payable at the end of the agreement if you decide to purchase the vehicle.
**If you part exchange the vehicle for a new BMW, any surplus in the vehicle’s part exchange value over the optional final payment and option to purchase fee can be used as a deposit towards your new BMW. If the vehicle’s value is less than the optional final payment, you don’t need to worry as you can hand it back to us and not make this payment. A new agreement will be subject to status.
***Excess mileage charges and excess wear and tear charges may be payable upon return of the vehicle.

http://www.bmw.co.uk/en_GB/topics/financial-services/financing-your-bmw/financingyourbmw.html#select
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Try and get it in writing from her, ALWAYS in writing.

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Bmw select is purchase lease instead of the normal hire purchse thats why you have a milage cap. I think what they are saying is that your milage will start again, they will prob still charge you for the current car and contract. Its all about the gvv (garunteed vehicle value) at the end of the contract so bmw can sell it on and make max profit.

They may well not charge for milage if you get a new contract but i have never heard that before.

I was a vehicle lease manager and thats what it sounds like to me.

Get it in black and white.

Sorry for the scrappy typing i am on my phone.

Edited by lpoolalan
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My understanding is that if you stay with bmw or indeed part ex with any other dealer they will offer you an amount. If that is above the gfmv then all is well. The only time excess miles comes into play is when you wish to hand back the vehicle (or if the vehicle is in negative equity).

Cheers

S

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  • 4 weeks later...

Sorry for the late reply, however Splang is, in my experience, correct. If you settle early with them, either by PXing your car somewhere else or with BMW, then they generally won't care about the mileage because they can make use of the vehicle again.

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