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I seriously considered it... but ended up having a long enough wait for the car that I was able to save up a pretty big chunk for a down payment... so I decided to go with regular financing, instead.
__________________ Founding member of R56 Anonymous. Now repeat after me: "Hello. My name is ____. I'm a driving enthusiast... and I still like the R56!"
I like to be as careful and in control of my finances as possible and this just strikes me as far too similar to an A.R.M. for a house (and we're all seeing/suffering the effects of these). Personally, I think this is just a way that MINI is getting people to buy a car that they can't really afford. FWIW I think you should save up for a downpayment that will reduce your monthly payment to an affordable level. I decided I wanted to get a new car four months months ago but saved up as much as I could and held off from buying anything and just put in my order tonight on an R56 MCS with more options than I need and after putting 10k down on it the monthly payments will not be a problem. Not to mention you will actually have some instant equity.
I have over 10K from selling my previous car and put it to work while waiting for the MINI. The mutual funds at Vanguard.com are very good. I might just leave the money in there for longer because the return rate is higher than 20% per year. The auto loan interest rate is only 6.5%. I am going to put down a small down payment and let my money grow.
It's a hybrid of a lease and retail contract. I think for most people it turns into an eight or even 9 year loan (2 four year loans back to back). That's due to them not being able to pay off the balloon payment at the end of four years and having to finance the balloon.
Your payments may be higher on a 5 year loan but you'll save tons in interest doing the retail loan unless you are able to pay cash for the balloon (typically 50%-60% of the MSRP) at the end of 4 years.
__________________ Laser Blue/White MCS delivered 3/8/07. Off lease 5/17/09.
Tigger - 2009 JCW delivered 4/27/09, FMIC, boost gauge, Striped and tinted
Alta AccessPORT tune - 267wtq & 219whp
MINI #3 - 2011 White Silver/Black MCS. Delivered 5/11/11. All glass tinted;bobcat pads;OZ Ultra Leggeras;205/50/16 Starspecs
Thanks for ur input. I'll go for the traditional finance then..even the finance manager suggested i go for the traditional finance instead of MINI Select.
Thanks for ur input. I'll go for the traditional finance then..even the finance manager suggested i go for the traditional finance instead of MINI Select.
Mini Select is a good option for people who dont keep there cars longer then 3 years you dont have the leasing issues with milage, damage etc but you get the advantage of the very high residual 72% on my deal. Based on resale values and the fact my dealer will take the car back early (2 1/2 years) I should end up flat or even have a bit of equity in the car. Since I deduct 90% of my driving for tax purposes that chops yet another 1/3rd of the real cost of the payment so for me it works
Laser Blue/White MCS delivered 3/8/07. Off lease 5/17/09.
