i am currently torn over getting into a mini by choosing the mini select financing which would mean rolling over my payments into the new mini payments. what i don't like is paying for something that i no longer have, as well as the balloon payment at the end.

problem is is that i have fallen in love with the mini! i have become obsessed in trying to find a solution to owning a new mini and accepting paying for something i no longer have.

i would be teriminating my nissan altima lease early.

what i don't understand is how the balloon works, is it some kind of a "scheme" (which i don't think mini would actually do), and can i return the mini at the end if i don't want to pay the balloon payment?

the select is affordable even with the altima's lease payments built in.

advice?

thanks!

 

As I understand it, the mini select is a purchase program that works similarly to adjustable rate mortgages (ARMs): pay little for a short period upfront, then pay for the balance (applied interest and principal) after that period is up. As this is a purchase plan, you do not have the option of returning it like a lease--unless of course, you sell the car early. However, keep in mind that because you've made very little repayments to the principal loan, you'll be VERY upside down on your loan.

Also, keep in mind that APRs after a certain period could go up which means that you could be paying a lot more interest on your initial loan.

And finally, I really can't recommend rolling over your payments from your current car to the financing of a new one. Basically, you're paying interest on the interest of your current loan.

At the end of the day, it's your money and you can choose whichever option fits your need/desire. However, when desire trumps need, you'll end up paying through the nose.

 

exactly what i am fighting with: desire vs. logic, and i know that i will lose by paying through the nose.

if i hated the altima, i'm pretty sure i'd do it throwing caution to the wind.

but i really love the mini, and would almost pay for the remaining payments upfront.

waiting until next summer is really a long time away.

thanks for the advice!

 

Sure thing. I'm sorry that it's not exactly what you'd hoped for, but keep in mind that every new model year brings upgrades. I waited 8 years to get into mine (not suggesting that you wait as long), but I can definitely say that it's been worth the wait.

 

That balloon payment is always a killer, either sell the car before you get to that point, or finance it another way.

 

How much longer on your lease. what are your payments now- getting out of a lease early is costly. Find out what your 10 day pay off is.

 

$4297 is total for payoff. mini wants to give me $3900 but of course roll those payments into new loan.

temptation is that i could be paying less or a tad more than what i am paying now for the altima @ $329 mo until 10/11--technically.

 

MINI Select is simple... low payments for a preset term, then the 'balloon' payment is the balance of the car's price. You either pay the entire 'balloon' payment at the end of the time period or you can finance the 'balloon' and have a few more years of payments. It is different from a lease in that you don't have the option of just turning the car back in - it is a purchase plan, not a lease.

 

I would say bite the bullet and wait. I know waiting is hard, I played with the configurator for years before enough ducks were lined up.
The money you will save in the end will pay for the mods you will want, and if you can wait until the end of a model year, MINI usually has very agreeable interest rates, but you may be limited with selections.
Tough call, best of luck, whatever you decide.

 

that's what i've decided to do: wait. told the guy i can't see financing 4,000 bucks for something i no longer have. this sucks!

 

if it's any consolation, i think that you made a very financially sound decision. the last thing you want is to have a cloud of debt casting a shadow on enjoying a new toy. hang in there.

 

You can also sell the car at the time the balloon payment is needed if you want to pay the debt off. In my case, the balloon payment is probably a little under what a fully loaded 5 year old Clubman S will be worth $14,000.

I love the MINI Select plan. No mileage restrictions, no fear of modding it since it's not returned, low payments..was $250/month for me before I decided to roll the extended warranty into it..and that's still just under $300/mo.

Yes, the dealership will make a nice chunk of change in interest (fixed) from me over the course of 5 years..not the cheapest way to buy a car, but since I've had a MINI for the past 7 years...I'm driving what I want, it's reliable, and I love it!

These are always personal decisions. Do what's in your best interest, not necessarily what you want!

 

I've thought about the Mini Select plan too, but I won't have a trade in, so there will be on rolling anything over into it. Of course, there is the big balance at the end, but the only reason that I would like the lower payment rate is in case of an emergency loss of job, health, something like that. I have NO INTENTIONS of making the low payments, and will try and pay it off in three years. The double, or triple payment thing is my intentions, unless of a problem, which I don't foresee, but one never knows.

Buying with the big balloon at the end, isn't really a good way, but if you can either, save for that payment, find a bank that will loan you $15K on a six year old car, or do as I intend and make multiple payments when you can. Just my humble thoughts.

 

i was thinking of the fact that i could always trade it in or sell it and only be 1-2 thousand off the mark of the loan--which wouldn't be so bad if i rolled it back into the new payment of a new mini, or save at least 3 thousand in order to pay off remaining balance as long as i came close to the balloon payment amount.

i told the salesperson that i would've taken the mini base hardtop, just cold package, for $310 mo throwing in stripes, but i didn't make the deal, because i just can't see myself living with an extra $4000 rolled into the payments from the altima. that tacks on $65 extra a mo for five yrs.

maybe i can see $1-2 thousand rolled into payments.


does the mini select rate stay the same all of the time, or is there a possibility that mini may offer 0% financing? highly unlikely, right? has the rate ever gone up on a select?

also, does anyone know if mini has ever had a 0% financing on minis in the past?

 

0% right now on the MINI convertibles. I got 0.9% on my new Clubmman...that's hard to beat!

 

spoke to the salesman at a mawah, nj dealership, and he told me about 0.9% financing, but i don't think that applies to the mini select. that's what i need to get into, unless i can make economical payments using the 0.9% without putting thousands down. i told him to call me with some numbers, told him what the other dealership was offering, and i am still waiting for his response.

i will call him tomorrow.


also told him that the other dealership was only taking off $500 sticker, and i thought they could do better. he sounded like he agreed.

hopefully he will work up something realistic and reasonable.

 

cozy828: I don't know about the .09%, I'd like to know more about that, but my deal was/is $1000 plus the Xenon's with the Adaptive System free. I got a couple of other things free too, but all in all it was over $1500. off the sticker. Yes, I jumped at that deal, but still went for more freebies.

 

The current financial offers are pretty well explained at MINIUSA.COM.

 

This may be true, but that is only for the 2010's. What most of us are curious about is what they will be offering for the 2011's. Or, at least in my case.


The current financial offers are pretty well explained at MINIUSA.COM

 

Who did you deal with at Prestige? That's where I got my Mini from about a month ago. I went to Terry Glatman who was very honest and not pushy at all.

I had been trying to get a Mini for a while and had been following the select financing rates a lot over the past year. It varies significantly by month and model. The Clubman's usually have the better rates. I've seen regular cooper hardtops as low as 1.9% (this past August) all the way up to 5.9% for the Select Financing. I haven't ever seen it drop to 0%. The 0.9% number was for a traditional finance, and going the traditional would probably make your payments significantly higher.

The long and short of the Mini Select is this: you finance only a portion of the car and the balance of the loan is due after your term is up. When you get to that point you have 3 options: #1) buy the car outright, #2) finance the rest of the payment (but remember, it's now a used car and finance rates are significantly higher but you'll also be financing a lesser amount than when it was new) and #3) sell the car either to another party or trade/sell it to the dealership. In the case of option #3, you have to be careful... everyone always seems to say how easy it would be to sell the car to someone else but at this point you still won't have the title in-hand since the bank still owns the car. You would have to come up with the balloon payment for the bank to release the title and most people won't buy the car unless they see the title ahead of purchase.

Sorry for the long explanation but figured the more info, the better. I hope it works out for you one way or another and good luck

 

thank you very much for all of your advice.

i am currently talking to shawn at prestige. he, too, is not pushy, and seems to be very knowledgeable. i haven't had a chance to speak to him today; will definitely speak to him tomorrow.

the long explanation was clear and precise: well worth reading!

thanks again!

the 0.9% is on a finance not on the select.

that's what i figured on the 60 month option.

 

also, doesn't the select percentage rate pertain to your credit standing?

 

was that $1500 off sticker and freebies, or were the freebies totalling $1500? also, what is the adaptive system?

 

Yes, that's $1500 including the Freebies, well except the floor mats and rear bumper protecter are above and beyond that.

The Xenons are the HID lights and the adaptive system is the new feature for use with the Xenons that turn when you turn the steering wheel. It's new for Mini this year, but BMW and Volkswagon have had it for a couple of years. Actually the deal is $900. and $600 in the headlight system. I think that Mini wants that Adaptive headlight system out amoung us troops.

I was going going to order the Xenons anyway, so to me it is a $1500 deal.

 

That actually is true for all financing.