Now that the time is getting near, we are looking for finance options on our baby. Does anyone have any input on their experience with mini financing vs other options? What kinds of rates have you been looking at with Mini. We are looking at a traditional loan for probably 48 month duration.

 

If you're a Costco member, check into their auto loan program. Pretty good rates on traditional loans.

 

we do belong to Costco... I'll check that out.

 

If you are in California, I really like www.wescom.org

 

We looked at Costco but the rates weren't the lowest. We got the lowest rate from my wife's credit union, with my bank coming in 2nd. I really wanted to use my bank so I called them up and asked them to lower the rate, which they did.

Don't be afraid to ask for a lower rate...they can only say "no". Also don't forget to take into account gap insurance. The loan from my bank came with it but you can often buy it from the lender if you're interested.

Paul

 

I was told that Mini financial Services lowest rate was 5.69% by my MA for traditional financing. I was able to get 5.6% from a local credit union so I went with that. But since I had an 8 month wait I was also able to pay 1/3 down on the cost of the car.

The mini select financing did not sound appealing. Sounded like lower monthly rate with a big balloon payment at the end.

 

mini select sounds like an interest only mortgage.... i.e. better for the bank but attempting to sell to the customer without letting them know they are compounding their interest paid by not paying off any principal. if we go with mini finance, it will definitely be for a traditional loan

When did you get that rate from from mini? I just checked costco and they have 5.34 for 36 months. I called my dealer and they are looking into it but they seemed hestitant... which I thought was strange.

 

That rate quote was a few weeks ago (got the car on 4/1/06). Initially mini said I was in the best credit group and offered me a rate of 5.99% I went to the credit union and got a lower rate and went back to the dealer. That is when he told me that 5.69 was the lowest rate they offered.

The credit union could have given me 5.3% if I signed up for their credit card and started another account but it wasn't worth it to me.

 

5.25% for up to 5 years at Western federal credit union.

www.western.org

 

Not at all. MSRP on our MC was around $20k, and we went with the Mini Select plan. We're definitely paying off principal on the plan. At the end of 30 months, our balloon payment will be around $13k (our monthly payments are only $238). The Mini Select plan isn't for everyone, but it fit our financial plans for the next several years very well. That being said, I probably will go with traditional financing for our next car, as we are in a different place financially than we were when we bought our MC.

-Keith

 

The Mini Select plan isn't for everyone, but it fit our financial plans for the next several years very well. That being said, I probably will go with traditional financing for our next car, as we are in a different place financially than we were when we bought our MC.

That does sound better than what I would think - it totally reads like it is an interest only thing with a big surprise at the end. I totally get what you're saying and agree that it depends on the person and what is affordable - when I bought my first car out of college, I actually leased it b/c I just could not afford to buy or even put much of a down payment on it. Leasing was really the only affordable option for me at that time....

 

It took quite awhile for our paperwork to get processed since the Mini finance guy was on the phone with Mini Financial numerous times getting his questions answered. He said it was only the 2nd Mini Select plan the dealership had ever done that he could recall.

The main reason we did it was because we had gotten into a lot of credit card debt over the years, but last year we came up with a plan to get out of debt. We're putting $2000/month towards our debt until it is paid off (later this year). After that we had planned on making $1000/mopnth payments to the MC and have it paid off before the balloon payment is due.

We're strongly considering trading in our MC in for an MCS soon though, and if we go ahead with that (I'm going to the dealership tomorrow), we'll go with traditional financing through our credit union since we're almost out of debt.

-Keith

 

I had $24000 of my $29000 MCS, so I took the other $5000 from my Home Equity line of credit. The intrest rate is a bit higher, but I can get a tax credit. And I plan on having the car paid off in less than a year, which doesn't amout to much intrest. So I just walked into the dealer, handed them a check, and walked out with my car.

 

b/c we're not financing that much either but I called around this morning and it looks like the interest rates are 7.5 - 8% (because prime has been raised so much recently by the fed). Plus in NY there are higher closing costs. So I think a normal car loan is going to be the better deal.

 

congrats!!! That is great. It must feel liberating!! And kudos to you for having this type of discipline. The MCS will be a nice reward for you guys!

 

whaa??! what happened to the 5.xx% rates?

 

A friend of mine who worked at Costco said that with a Costco membership they often have agreements with car companies where you can buy around $500 or so over invoice.

Anybody know if MINI honors that??

 

I have 5.49% / 60 month through a credit union for my car, which I'll pick up next weekend. And that's still the rate published on their web page. When I was shopping for the car in November, it was 4.99%, but that approval was only good for 60 days and the rate went up while I waited for the car.

I might be able to get a quarter point lower if I shopped around enough, but I was very happy with my CU's service on a previous car loan and this one, so I'll stick with them.

 

When you keep hearing on the news that the Fed is jacking up interest rates a quarter of a point every time they have a have their Tuesday meetings...lets see, I think twelve times in a row now...it increases any interest rate which is based on the prime rate.

So in July 2005 I got a 5.75% APR from University Credit Union in LA and now their rate is 6.50%...what can you do, not a whole lot, if you're financing.

 

i thought maybe this was really recent...

got me scared...

capital one gave me a 6.2% "blank check" so I at least have that if everything else is worse when it comes time to finance in the next couple weeks.

 

Nope - Costco only gets ya $350 off of MSRP. Not much.

 

We did the select plan as my income will undergo a significant change prior to the balloon coming due (end of surgical residency adn starting practice). It keeps our payments affordable now, I own the car so I can mod it if I want, I can tade it in without a lease end problem, and I will just pay off the balloon payment at the end of my 24 month "select" portion. Car was $25,001 sticker, put $9,000 down at 6.9% and my total payment is $264/month. Better than what I was paying on my Mazda before it was paid off!

 

Would you mind saying what the balloon payment will be?

 

$15,600

 

If anyone has an aadvantage mastercard, they are willing to give me a 1.9% blank check good for the life of whatever I use it for. No fees or anything... as long as I make the min payments each month (which I will since this will be in lieu of a car loan). Just thought people might like the FYI if they have this card... sure beats the 6.5% new car loans. Unfortunately, I do not belong to a credit union and regular banks are not doing the 5.5%.