BMW Lease-End Options [Complete Guide]
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Waiting until the last minute to handle your BMW lease-end can leave you in a bind. Instead, you should start to prepare for your lease-end during the final six months of your lease.
What are the BMW lease-end options, and which should you choose?
Learn more about the different options with BMW, any fees, and what you can expect.
Check out BMW trim comparisons here.
Table of Contents
|BMW Lease-End Options|
|Return & Lease|
|Extend Lease||(May be able to re-lease)|
|Lease-End Fees||$350 Disposition Fee, Wear and Tear, and Excess Mileage|
|Lease-End Benefits||Unused Mileage Credit for next lease, waive disposition fee|
BMW Vehicle Inspection
If you plan to return your BMW lease or get a new BMW at the end of your lease, then you’ll need to have a vehicle inspection on your current car. You should schedule your complimentary vehicle inspection around three months before the lease-end to ensure you have time for repairs.
You are required to have a vehicle inspection before returning the vehicle. The inspection company will contact you to set up an appointment. At the time of inspection, the company will assess the condition of your BMW according to BMW standards. You will then receive a Vehicle Inspection Report outlining required repairs and associated costs. You can then complete the work before returning the vehicle and bring receipts, or you can pay for the charges outlined.
Option 1: Return BMW Lease
One option for the end of a BMW lease is to return the leased vehicle. BMW outlines the process for lease return on their website. The steps to return the lease include:
- Schedule the Pre-Inspection: Schedule your complimentary pre-inspection with a BMW center.
- Review the Results: Head to your "My BMW" account to review the pre-inspection results. You’ll be able to view your Vehicle Return Estimate with a list of repairs, remaining payments, etc. If you exceeded your miles, you may be able to purchase additional miles before returning your BMW.
- Repairs: Visit your local BMW Center for necessary repairs. Seeking repairs from a BMW center prevents the use of unapproved parts.
- Return Your Vehicle. When your lease comes to an end, schedule your final inspection and vehicle return. Note that using the free pre-inspection and making necessary repairs ahead of time streamlines your return.
- Obtain Your Vehicle Return Statement: Head to "My BMW" to view your vehicle review statement. You’ll also receive a hard copy in the mail two to three weeks after returning the vehicle.
Option 2: Purchase BMW Lease
If you plan to purchase the vehicle at the end of the lease, contact the BMW Center who originated the lease. Your contract includes the lease buy-out option price, and the center will help you arrange to purchase the vehicle after the lease.
A BMW Client Advisor will help you facilitate the buy-out transaction. At that time, they will create a new sales agreement. For the buy-out process, you must pay sales tax and re-register the vehicle in your name. The Client Advisor will also review options for financing the car.
Option 3: Return & Lease New BMW
Another end-of-lease option is to return your current vehicle and then lease a new BMW. You must follow the same steps for returning the vehicle (inspection, repairs, etc.). However, you should also articulate your desire to the BMW sales advisor.
Ideally, you should start shopping for the new BMW you’d like to lease or purchase before turning in your current vehicle. The sales advisor will walk you through options for leasing, financing, paying in cash, and more. They may also help you browse through certified pre-owned BMWs.
The sales advisor will help you with the lease-end turn-in for a seamless transition. This way, you can leave the current vehicle with BMW when you pick up the new one. Starting this process a few months before lease-end ensures that you have time to take care of the inspection and any repairs.
Option 4: Extend BMW Lease
BMW USA does not describe a lease extension as an option. You may be able to re-lease your current vehicle, but this is considered a re-lease rather than an extension.
If you are interested in re-leasing the vehicle, contact your BMW Center to negotiate one. Most centers allow you to re-lease for between one and three years. Contact your center to learn more about lease extension options at least three months in advance.
Note that certain BMW centers may allow you to extend your lease for up to six months if you choose to lease or finance a custom-ordered BMW.
BMW Lease-End Fees
- Disposition Fee: BMW charges a $350 disposition fee to turn in your lease. If you purchase or lease another BMW within 6 months of returning your vehicle, this fee will be waived.
- Overdue Services: If the vehicle is overdue on regular maintenance (like oil changes, brakes, etc.), you must pay a $750 fee.
- Wear and Tear: You will have to pay fees for cosmetic issues based on severity. However, you can reduce or prevent this fee by making the necessary repairs after your pre-inspection.
- Excess Mileage: The excess mileage fee will vary based on how much you exceeded the limit. The best way to reduce this fee is to purchase the miles at a discounted rate before the lease-end. If you exceeded the mileage by a lot, consider a high mileage lease in the future.
What Constitutes Wear and Tear?
These are BMW’s guidelines for excess wear and tear:
- Scratches or dents over 2 inches
- Cracks or collision damage on an external panel
- Aftermarket vinyl wrap or broken exterior parts not repaired following the manufacturer’s specifications
- Deeply scratched, bent, or buckled bumpers
- Decal removal damage
- Unremovable odors
- Service indicators for Brake Pads or Engine Oil
- Mechanical or engine warning lights
- Damage to the vehicle due to failure to keep up with scheduled maintenance
Lamps and Glass
- Broken lamps that allow water in
- Damage to the glass (cracks, scratches, stars, chips)
- Repaired windshield
Tires and Wheels
- Seasonal tires
- Repair plugs in tire sidewall
- Damaged wheels, alloys, or wheel covers
- Re-treaded tires
- Missing tires, or tires that don’t make the manufacturer’s specifications
- Missing equipment, including keys, tablets, etc.
- Aftermarket alterations
- Structural modifications by a third-party
BMW Lease-End Benefits
If you return your BMW with less than the contracted miles, you can earn "Unused Mileage Loyalty Credit" for the next BMW lease. You can earn up to $300 with the "Unused Mileage Loyalty Credit".
Furthermore, if you purchase or lease another BMW through BMW Financial Services, they will waive the disposition fee. To be eligible for the Waived Disposition Fee, you must finance or lease another BMW within six months of returning the current one.
Frequently Asked Questions
What are my options at the end of the BMW lease?
At the end of your BMW lease, you can purchase the BMW from the lease, return the BMW, or choose a new BMW to lease.
Where can I return my BMW lease?
You can return your BMW to any BMW center that will accept the vehicle. Only the center where the lease originated is required to accept your vehicle. If you would like to return your BMW to another center, you should contact the center ahead of time to ask if they will accept the lease return.
What do I need to bring with me when I return my BMW lease?
When returning your BMW lease, you must bring all of the items that came with the vehicle. You should bring all keys, accessories, and the owner’s manual. You must also bring your item repair receipts if you had excess wear and tear repaired.
Is my residual value, purchase price, or end-of-lease fees negotiable with BMW?
These terms and conditions are set at the beginning of your lease, and you will not likely be able to negotiate them upon turning in your leased vehicle.
Can I return my BMW lease before the lease-end date?
You can end your BMW lease early. However, you’ll have to pay a large termination fee as well as the rest of the depreciation value dictated by your original lease terms. Consider an alternative to ending the lease early.
What charges am I responsible for when my BMW lease ends?
You must pay the lease disposition fee and any fees for wear and tear or excess mileage. The fees will depend on the extent of damage and how many miles you exceeded the limit by. You can waive the disposition fee by purchasing or leasing a new BMW within 6 months of returning the current one. You can reduce the cost of excess mileage by purchasing miles for a discount after pre-inspection, and you can prevent wear and tear fees by handling necessary repairs before turning in the vehicle.
What constitutes wear and tear for BMW?
BMW has a helpful guide of what is considered wear and tear that needs repair. Some examples of excess wear and tear include large dents or scratches, bent bumpers, interior burns or cuts, mechanical warning lights, and a cracked windshield.