How Much Does it REALLY Cost to Buy United Miles? Let’s Break It Down!

The short answer is: buying United MileagePlus miles typically costs around 3.5 cents per mile, plus a 7.5% excise tax. However, this price can fluctuate based on various factors such as promotions, purchase volume, and your MileagePlus status. So, let’s dive deeper into the true cost and the smartest ways to buy United miles.

Understanding the Base Cost of United Miles

United Airlines, like many other airlines, offers the option to purchase miles directly through their website. The standard price is consistently around 3.5 cents per mile (USD). This might seem straightforward, but this is just the starting point. You also need to factor in the additional costs.

The Excise Tax Factor

Adding to the base cost is a federal excise tax of 7.5% on each transaction. This is a standard tax levied on various goods and services, including the purchase of airline miles. Always remember to factor this into your calculations to get a true sense of the cost per mile. So, if the base cost is 3.5 cents per mile, adding 7.5% brings it to roughly 3.76 cents per mile.

Transaction Fees and Limits

While there are no explicit transaction fees beyond the excise tax, there are annual limits to how many miles you can purchase. Generally, MileagePlus members can purchase up to 175,000 miles per year. However, United frequently runs promotions that allow you to exceed this limit.

Unlocking Potential Savings: Promotions and Bonuses

The key to buying United miles strategically is to capitalize on promotions. United frequently offers bonuses that significantly reduce the effective cost per mile.

Types of Promotions

These promotions can take various forms:

• Bonus Miles: Receive a percentage of bonus miles on top of your purchase (e.g., buy 50,000 miles, get an additional 25,000 miles).
• Tiered Bonuses: Bonus miles increase based on the number of miles purchased (e.g., buy 10,000 miles, get a 20% bonus; buy 50,000 miles, get a 50% bonus).
• Discounts: Receive a discount on the per-mile price (e.g., save 20% on all mileage purchases).

Maximizing Promotional Offers

To make the most of these promotions, consider the following strategies:

• Subscribe to Email Alerts: Ensure you’re subscribed to United MileagePlus email updates to receive notifications about upcoming promotions.
• Check United’s Website Regularly: Visit the United MileagePlus website frequently to see if any current promotions are available.
• Evaluate your Travel Needs: Before buying miles, have a specific redemption in mind to ensure that the cost of the miles is less than the cost of purchasing a ticket outright.

Example Scenario: A Promotional Advantage

Let’s say United is offering a 50% bonus on purchased miles. You decide to buy the maximum 175,000 miles. With the bonus, you’d receive a total of 262,500 miles (175,000 + 87,500). Factoring in the base cost and the excise tax, your effective cost per mile drops significantly. If we calculate the base price of 175,000 miles to be $6,125 and then add the 7.5% excise tax of $459.38, we get a final cost of $6,584.38. Now, if we divide this by the 262,500 total miles received, that means each mile costs you roughly 2.5 cents.

Alternatives to Buying Miles Directly

Before rushing to purchase miles, explore alternative avenues for accumulating MileagePlus miles. These strategies often provide a more cost-effective way to boost your mileage balance.

Credit Card Spending

Co-branded United Airlines credit cards, such as those offered by Chase, are excellent for earning miles on everyday spending. These cards often come with lucrative sign-up bonuses and bonus miles on specific spending categories like travel and dining. Plus, some cards give you perks such as free checked bags or priority boarding.

Transferring Points from Partner Programs

Another great option is transferring points from partner programs like Chase Ultimate Rewards or Marriott Bonvoy. These programs often have transfer bonuses, further enhancing the value of your points. Keep an eye on the transfer ratios and potential transfer bonuses.

Flying United and Partner Airlines

The most obvious way to earn miles is by flying with United and its Star Alliance partners. Ensure you’re a MileagePlus member and that your frequent flyer number is attached to your booking.

When Buying Miles Makes Sense

Buying United miles isn’t always the best option, but there are situations where it can be advantageous:

• Topping Off an Account for a Specific Redemption: If you’re just a few thousand miles short of a dream trip, buying miles can be a quick way to bridge the gap.
• Taking Advantage of Redemption Sweet Spots: Look for situations where redeeming miles offers significantly better value than paying cash for a ticket. For instance, premium cabin redemptions on long-haul flights can often provide exceptional value.
• Leveraging Promotional Offers: As discussed earlier, substantial bonus miles promotions can make buying miles a cost-effective strategy.

Important Considerations Before Buying

Before hitting that “buy” button, consider these critical factors:

• Redemption Availability: Check award availability before buying miles to ensure you can actually book the flights you want. Award availability can be limited, especially during peak travel seasons.
• Expiration Policies: Be aware of United’s mileage expiration policies. Miles can expire after a certain period of inactivity. Having activity in your account will keep the miles from expiring.
• Value of Redemption: Calculate the value you’re getting for each mile. Divide the cash price of the ticket by the number of miles required to redeem it. If the result is significantly higher than the cost per mile, then it’s a good deal.
• Compare to Cash Fares: Always compare the cost of buying miles and redeeming them for a flight to the cash price of the same flight. Sometimes, paying cash is simply the cheaper option.

FAQs About Buying United Miles

1. Can anyone buy United miles?

Yes, generally anyone with a United MileagePlus account can buy miles. However, new accounts may have to wait a certain period before being eligible.

2. Is there a limit to how many miles I can buy per year?

Yes, the standard limit is 175,000 miles per year, excluding bonus miles earned through promotions.

3. How long does it take for purchased miles to appear in my account?

Miles usually appear in your account within 24 hours, but it can sometimes take up to 48 hours.

4. Are purchased miles refundable?

No, purchased miles are generally non-refundable.

5. Can I buy miles as a gift for someone else?

Yes, you can buy miles for another MileagePlus member, provided you have their MileagePlus account number.

6. Do United miles expire?

Yes, United miles can expire if there is no account activity within 24 months. Activity includes earning or redeeming miles.

7. What forms of payment are accepted for buying miles?

United typically accepts major credit cards such as Visa, Mastercard, American Express, and Discover.

8. Are there any restrictions on using purchased miles?

Purchased miles are subject to the same redemption rules and restrictions as miles earned through flying or other activities.

9. Can I use purchased miles to upgrade my flight?

Yes, you can use purchased miles to upgrade your flight, subject to availability and fare class restrictions.

10. Is it better to buy miles or pay cash for a ticket?

It depends. Compare the cost of buying miles and redeeming them for a flight to the cash price of the same flight. Evaluate your other earning options as well. If you are short of miles for a particular redemption, buying may be better. However, purchasing miles is usually the best approach when there is a promotion.

11. How can I check if there are any current promotions for buying United miles?

Check the United MileagePlus website or subscribe to their email alerts to stay informed about promotions.

12. What is the best strategy for buying United miles?

The best strategy is to capitalize on promotional offers, have a specific redemption in mind, and ensure the cost of the miles is less than the cash price of the ticket.

In conclusion, buying United miles can be a valuable strategy, particularly when leveraged with promotional offers. However, it’s crucial to do your homework, evaluate your travel needs, and explore all available options before making a purchase. By understanding the costs, benefits, and potential pitfalls, you can make informed decisions and maximize the value of your MileagePlus miles.