If there's one thing I have learned from these forums, it's that there is a wide diversity of opinions on every topic, even "benign" ones like "is leatherette good".

In statistical terms: there is a high mean (lots of knowlege) with a large variance (lots of diverse opinions).

 

White Mountain and CDMini both make excellent points.


Generally speaking, as an individual, you are better off financing than leasing. Especially with a mini, where the actual value of the car in a few years will undoubtably be better than the residual that they are quoting you.

Many years ago when buying my first (of many) new BMW, I asked the salesman (after the sale) why he was pushing the lease so hard. "Because we can usually sell the car for sticker" was his response.

EVERYONE: Be aware that dealerships also make money on the financing. If you can't negotiate the price of the car (or even if you can ) you can always try to negotiate the financing rate. Just be prepared - in other words, go to your bank first, set up a loan, and then when you're at the dealer and they say "you can borrow for 8%" tell them that you can get 7% at the bank, and they need to beat it. If they do, fine, if they don't, then go to the bank and use them. Chances are, most dealerships will at least meet if not beat the competitive rate (unless your credit sucks).

You can also get financing via the Internet at competitive rates.

I have no issues with businesses (including car retailers) making a profit, I just have issues with the greedy ***** who take advantage of uneducated or unsuspecting customers. I have been ripped off so many times that I think I've learned most of their tricks. Although I'm sure I'll get screwed again in the future some other new way.

Michael

 

^---what he said

 

Wat he says. I made the mistake of leasing ONE time....never again. Buy a less expensive version and build equity.

Cheers

 

I'm going to the dealer on at lunch and I'll report back on what quotes I got...

 

OK this is what they quoted me:

Mini-S MSRP 26,700
ColdWeather Package
Sport Package
DSC
FogLamps
Xenon W/ powerwashers
17inch all season Slights
Limited Slip Diff
Auto Dimming Rear View Mirror
Special Headliner
Nav /w on brd comp
multifunctional wheel
8spkr H/K (this makes a big difference from the stock one)
------------$26,700--------------

36month Lease
12,000 miles
$407.50 per month
2531 down
free floor matts
pay off 17,889
---------------------



60month Finance
$528.12 / month
2,500 Down
5.4%
free floor matts
----------------------



What do you guys think? These #'s are in my range both Finanace and Lease, I would like to know if anyone was able to get the Dealer to drop MSRP? This man would not give me way to a penny, he would only give me free car matts.

 

I assume 26,700 is pretax??? 5.4% is a pretty good rate... I'm financing through a credit union and they gave me 4.5%... the best i could do with a bank or with MINI financing was 6% and my credit is A+. I guess you have to decide which works better for you but personally leasing makes me nervious... The mileage and no customizing make me nervous. I guess its a personal choice. The down payment on the lease makes me nervous too... thats a lot of dough to lay out for what amounts to a rental! At least with the finance you own something. You also need to consider on a lease how they might screw you on the back-end of the lease.

MSRP is what you will end up paying... never less. A jerk might actually try to charge you more! I've never heard of anyone paying less than MSRP on a new MINI

 

I used the figures you gave. I find the IRR (internal rate of return) to be slightly higher for the lease, so the loan is a bit cheaper. I assumed the cost to be what you quoted (I ignored sales tax) and that the down payment occurs at the same time as the first monthly payment. I assumed you buy out the lease at the end and keep the car.

If you intend to keep the car, I'd go with the loan, as it is cheaper and gives you more flexibility about using the car.

 

if you can afford the finance I'd definately go for that over the lease. after 2 years or so you'll probably be even on the finance and from then on you're slowly building equity. with a lease you would lose any equity you get after you get right side up in the loan. after the 36 months you would have more in equity than just the 80/month you would be paying over the lease. so in essence if you got another new car at 36 months you would have the entire amount of the equity to use for a down payment... with a lease you'd need to come up with another down payment to get into another car... or buy it out which would cost a lot more in the long run.

 

I would do the finance.

5.4% is a great rate from BMW. You must have excellent credit.

There are some things about a lease that stink.

If this is your only car, you will rack up miles well above 12,000/year.
Everyone says that they can keep the miles down, personally I fight myself everyday NOT to drive the car and I own it.

The dealer makes you pay for every little ding, scratch and foul smell on return.

Forget about aftermarket mods, even the simple things like tint. Unless you want to spend extra time and money removing them.

There is no reason you should put a down payment on a lease. That only brings down the monthly payment not the total cost. You're just giving them 5 payments upfront to offset the low payment.

I got my MINI from Prestige, they are great.