Update: I just ordered an '06 MCS from Patrick Mini in Chicago (got my production number today!)

OK, so now that I've ordered my '06, I'm starting to get that bug again about the '07... more torque.. easier/cheaper to mod turbo... direct injection... less weight(!)... cooler interior gadgetry... higher resale value(?)...etc!

Anyway, it's making me reconsider the lease vs. buy thing again. I had figured out exactly what I want to do for a loan, and had bumped it out to 48 months for a smaller monthly payment.

I know I don't want an '07, becaus I'm *sure* either the '08 or '09 will be way more reliable and start to really take advantage of the new egine. Like I mentioned elsewhere, I'm waiting for that mystical 190hp/200lbft/AWD/MCS... maybe in '09?

Anyway... the REAL question is.. is it really worth it to lease a car for more than 24 months? What is the Mini Select leasing like (with the balloon payment) - is it a pretty good deal? Also, do I even have the option of leasing now that I'm buying out of state (woudln't I have to return it to the dealer in Chicago?)

All comments much appreciated

Thanks!

 

You can turn a lease car in at any dealership.

24-month leases are a good deal right now -- 70-something percent residuals, money factors depends on your credit, but they're competitive. You'll probably spend less if you buy it yourself and sell in 2 years laters -- maybe. But, there's the hassle of doing that, and the obligatory higher payments and/or higher down payment.

My car is in production and I'm 99% sure I'll be leasing for 24-months when it gets here. The end of that lease puts us into prime-time for the new MCS, and gives us the option of buying our current car (if the new one sucks), or giving it back to MINI if want the new car.

The downside (for me) is the inability to mod the car. Luckily the car comes set-up really well from the factory. I still might do some relatively cheap mods, that can be undone if I decide to turn back in (stripes, rear bar, etc.).

 

does leasing vs. buying on loan affect your credit report? IE, would i earn a higher credit score in the long run by buying on loan rather than leasing? I ask because a house purchase is probably not too far off in my future...

 

Neither one nor the other is better or worse for the credit report, to my knowledge. BUT if you will be buying a house, your debt to income ratio will play a part in that credit decision. With the lease, your debt is less and your monthly payment is presumably less and therefore your debt to income ratio is better. Theoretically then a lease is better for the house purchase possibility.

 

That's my understanding as well. It's the sum of the financial obligation that impacts credit score, not whether something is a lease or a loan. Typically a lease is a smaller obligation than a loan, for the same vehicle.

 

Good to know.

This is all making me lean towards leasing the car, especially since after 2 years i can just drop it back off at my local dealer. And in the mean time watch the quality of the '07 go up and get an order in for an '08 or '09.

 

Are you using the "MINI Select" with the ballon payment at the end? I'm trying to understand how this payment plan is different than a traditional lease??

 

No. Stay away from that plan. It's bad for you.

 

can you clarify that statement?

 

I found this on the miniusa leasing info:

"Important Note: If you do decide to lease or purchase a new, custom-ordered MINI, we will be happy to extend the lease on your current MINI for up to six months until the new one arrives (sorry, this option is not available to OwnersChoice customers). Also, please keep in mind that if your next vehicle is a MINI leased or purchased through MINI Financial Services, we will be happy to waive the end-of-lease disposition fee on your current vehicle and the security deposit on your new MINI."

That's good to know, say for example I leased now for 2 years and march '08 I still have to wait 6 months for my '09 model I can do a quick "re-lease."

I'm wondering, though, with such high resale value on the MINI if it would be better to own, then buy a new one and just wait for the new one to arrive before trying to sell the old one. That way i can also throw in a pulley and CAI, etc.

choices choices....

 

Still trying to figure this out... and MINI ships soon so I'll have to deicde soon!

I was running through the miniusa financial calculator and I cam across this little note:

"Amount financed must be at least $7,500."

I was trying to give a reasonable trade-in value of my MCS after 2 years, and according to all the blue books out there it shouldn't lose $7500 after 2 years and only 20k miles (even at trade-in value).

Is this a limit of the calculator, or does MINI just refuse to lease a car unless you're going to pay at least $7500 over the life of the lease?

If so, that's $300+/month for a 24 month lease - NOT worth it! I could easily turn around and sell the car for a loss of around $5k max after 2 years.

Thoughts?

 

You're not taking everything into consideration. Use a lease vs. buy calculator, like on cars.com or edmunds.com.

 

What's wrong with the MINI Select plan?? I don't fully understand how it works.