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$350 lease fee
$800 tires
$1000 - $2500 extra miles
$? other damage/dings ,etc.
Could be a large number, $3000-$5000, so if they are willing to do that maybe you've made an easy negotiation.
I'll have to tell my wife to beat the crap out of her car for the next two years.
LOL! Better option is to maintain a leased vehicle as if you were planning on keeping it forever. When I turned in my Range Rover Evoque the dealer said it was the cleanest he'd seen in years and he cut me a check large enough to handle the drive offs on my new Clubman
I leased the wife an Infiniti EX35 in 2012. Come 2015, I needed to get out of it 3 months early. So I paid the 3 months off, and handed the dealer the keys.
Infiniti writes me that I am delinquent PER CALIFORNIA LAW, even though my obligation was satisfied. I would have to wait until the thing goes to auction, then they will zero out the paperwork.
Strange comes next, they say even if the auction bid is lower than the car's residual, I wont need to pay anything. Im wondering, what the F#$@?
So three months pass, and I receive a check from Infiniti for $2,600.00, plus the last 3 payments of around $1200.00. They said the auction netted $2,600.00 more than the residual, and PER CALIFORNIA LAW, they needed to give it to me as if I paid the residual, and then sold it at a profit. Including the payments I made while it was back in their possession.
Also PER CALIFORNIA LAW they state early termination/obligation satisfied on my credit record.
Oh, and the wheel curb rash, and door dings were not deducted!!!
The rules are so weird, Ill never lease another car in CALIFORNIA again.
I came out smelling like a rose, but that was crazy.
I leased the wife an Infiniti EX35 in 2012. Come 2015, I needed to get out of it 3 months early. So I paid the 3 months off, and handed the dealer the keys.
Infiniti writes me that I am delinquent PER CALIFORNIA LAW, even though my obligation was satisfied. I would have to wait until the thing goes to auction, then they will zero out the paperwork.
Strange comes next, they say even if the auction bid is lower than the car's residual, I wont need to pay anything. Im wondering, what the F#$@?
So three months pass, and I receive a check from Infiniti for $2,600.00, plus the last 3 payments of around $1200.00. They said the auction netted $2,600.00 more than the residual, and PER CALIFORNIA LAW, they needed to give it to me as if I paid the residual, and then sold it at a profit. Including the payments I made while it was back in their possession.
Also PER CALIFORNIA LAW they state early termination/obligation satisfied on my credit record.
Oh, and the wheel curb rash, and door dings were not deducted!!!
The rules are so weird, Ill never lease another car in CALIFORNIA again.
I came out smelling like a rose, but that was crazy.
For MINI and BMW leases, there's an early termination option that stipulates "realized value." This amount can be determined by disposition of the vehicle by MINI in a "commercially responsible" manner (the auction), or by appraisal or by a mutually agreed amount, meaning the dealer can finalize the return right then without the multi-month wait. Also, BMW/MINI often offers "pull ahead" programs wherein the last few lease payments are waived if you get into another MINI or BMW.
But the main point is, one of the considerations if one leases is the commitment for the full term of the lease. And, since these cars depreciate a lot in the first couple of years, and the residuals on the MINI lease contracts are often inflated as a way to lower the monthly payments, that fat residual amount needs to be satisfied and can present a challenge if one needs to terminate a lease early.
So, my JCW finally arrived! On my way to pick it up, my MA called me and told me that the 2.9% rate that I "locked" in when I ordered my mini in Aug cannot be applied to my purchase. His explanation was that MINI Financial Services no longer lock the rates at the time of purchase, but he agreed it was their fault for not checking it. So... My option was to either take 3.31% and $500 loyalty or try to find another lender. Long story short, they found me a 2.3% loan with BoA and gave me $500 more for my trade in. Pretty happy with that!
P.S. Make sure to check your mini's paint and, in my case, bonnet alignment on arrival and let your dealer know asap. My roof has hundreds of tiny scratches and the bonnet does not close perfectly flush. I know it's not an extremely expensive car, but I do not think these things are acceptable for a brand new mid-$30K car.
So, my JCW finally arrived! On my way to pick it up, my MA called me and told me that the 2.9% rate that I "locked" in when I ordered my mini in Aug cannot be applied to my purchase. His explanation was that MINI Financial Services no longer lock the rates at the time of purchase, but he agreed it was their fault for not checking it. So... My option was to either take 3.31% and $500 loyalty or try to find another lender. Long story short, they found me a 2.3% loan with BoA and gave me $500 more for my trade in. Pretty happy with that!
The 3.31 is on 84 months. Unless you have fair to poor credit??
Special APR
Requirements and Restrictions:
Special APR for qualified customers based on credit tier approval.
0.9% APR financing for 48 months at $21.22 per month, per $1,000 financed. 0.9% APR financing for 60 months at $17.05 per month, per $1,000 financed. 0.9% APR financing for 72 months at $14.27 per month, per $1,000 financed. 3.31% APR financing for 84 months at $13.35 per month, per $1,000 financed.
Special APR Month Term Start End
0.9% 48 09/01/2017 10/31/2017
0.9% 60 09/01/2017 10/31/2017
0.9% 72 09/01/2017 10/31/2017
3.31% 84 09/01/2017 10/31/2017
EDIT
NEVER MIND, they stick higher rates for JCWs, yeah its 3.31%
Does anyone have any thoughts on what a reasonable discount would be on a new 2017 JCW Hardtop (2 door) with a sticker price of around $38,000?
I realize there isn't a huge volume of these cars, but I also assume there should be a reasonable discount given that 2018s are here.
Thanks.
I think $5-6K is possible + Any Incentives ($500 loyalty and USAA $1000 if applicable), plus you can take advantage of 0.9% for 72 months financing until 10/31.
The 2017 JCW at my local dealer was offered to me at almost $6K off in August.
Wow - that's much better than I had imagined. Do others have similar experiences?
Originally Posted by 67morris
I think $5-6K is possible + Any Incentives ($500 loyalty and USAA $1000 if applicable), plus you can take advantage of 0.9% for 72 months financing until 10/31.
The 2017 JCW at my local dealer was offered to me at almost $6K off in August.
All you can do is make an offer and see what happens!!
There is a small $825 "dealer contribution" amount on the JCW lease. Check out the MINI USA special offers page on their web site. The lease deal on the JCW is listed so, from that, you can deconstruct money factor and residual percentage by reading the details in the fine print. Residual is 60% on a three year lease.
The low finance rate is good on JCW's IF they're 2017. But the extra cash incentives are not on the JCW -- though there may be money hiding that the dealer can bring into play, but none is advertised.
Using the 60% residual, MINI is saying the cars depreciate 13% per year for the first 3 years. So a 13% discount would be the MINIMUM, and I'd start deeper than that.
On a $36,000 car, 13% discount would be $4,680, as an example. So $5,000 ~ $6,000 discount is maybe possible on a car that's been sitting.
As has been explored in prior posts, to get these deep discounts (if the dealer will do them at all) one needs to be ready to go -- ready to buy today -- and willing to walk away and keep shopping.
If a dealer knows that, for the right numbers, a qualified prospect will sign on the dotted line, the dealer is going to put forth the best offer if the alternative is a ready-to-buy prospect will walk away.
Lots of variables -- number of competing dealers in the region, inventory, trade-in value to the dealer, credit worthiness of the prospect.... Not a one size fits all proposition but, yes, serious discounts are getting snagged these days.
When specifying a residual value, such as 60%, is that percentage applied to the MSRP or to the actual selling price? If to MSRP, there must be some really low lease payments out there after a 10-15% discount is applied to the MSRP.
When specifying a residual value, such as 60%, is that percentage applied to the MSRP or to the actual selling price? If to MSRP, there must be some really low lease payments out there after a 10-15% discount is applied to the MSRP.
Lease residuals are always calculated from MSRP. So, in the case of the JCW offer, the residual is 60% of MSRP.
To make a lease a great deal, one negotiates the selling price of the car down.
Payments are based on the difference between the selling price (cap cost) of the car and the residual. So higher residuals and lower selling prices equal the best deals.
The residual cannot be negotiated. It's set by the lender, in this case MINI USA.
Further comment on how leases work. Because this is where people who do not understand the ins and outs of leasing can get confused and tripped up in the Finance office.
The advertised deals on MINI USA do not assume the negotiated selling price of the car will be less than what is listed in the example "special." So the $399/month lease deal is made to sound like that's the only special payment. NOT TRUE.
The lease special is the money factor and the residual. The MSRP and the FINAL AGREED UPON SELLING PRICE of the car will determine the payment amount.
That same $399 car might be snagged for $350 or maybe less, depending on how low the dealer will go on the final agreed upon selling price of the car. Just as if it were a purchase.
The ONLY thing about the MSRP is the residual is calculated as a percentage of the MSRP. After that, MSRP is a meaningless number. But the dealer hopes you don't know this.
All you can do is make an offer and see what happens!!
There is a small $825 "dealer contribution" amount on the JCW lease. Check out the MINI USA special offers page on their web site. The lease deal on the JCW is listed so, from that, you can deconstruct money factor and residual percentage by reading the details in the fine print. Residual is 60% on a three year lease.
The low finance rate is good on JCW's IF they're 2017. But the extra cash incentives are not on the JCW -- though there may be money hiding that the dealer can bring into play, but none is advertised.
Using the 60% residual, MINI is saying the cars depreciate 13% per year for the first 3 years. So a 13% discount would be the MINIMUM, and I'd start deeper than that.
On a $36,000 car, 13% discount would be $4,680, as an example. So $5,000 ~ $6,000 discount is maybe possible on a car that's been sitting.
As has been explored in prior posts, to get these deep discounts (if the dealer will do them at all) one needs to be ready to go -- ready to buy today -- and willing to walk away and keep shopping.
If a dealer knows that, for the right numbers, a qualified prospect will sign on the dotted line, the dealer is going to put forth the best offer if the alternative is a ready-to-buy prospect will walk away.
Lots of variables -- number of competing dealers in the region, inventory, trade-in value to the dealer, credit worthiness of the prospect.... Not a one size fits all proposition but, yes, serious discounts are getting snagged these days.
Good luck and let us know!!
Good luck with this line of thought.
Best time to lease a car is to wait for the July/August prior to the next MY. Incentives are heavy, MFs are aggressive, and residuals are still good.
Using the depreciation curve to calculate the proper selling price is going to sink some ships. A better plan is to keep an eye on discounts, incentives, and lease fine print to calculate the best deal. On something like a JCW, you're not going to find many dealers willing to dive that far below cost to move a car unless there's some money filling in the back end from the manufacturer.
Best time to lease a car is to wait for the July/August prior to the next MY. Incentives are heavy, MFs are aggressive, and residuals are still good.
Using the depreciation curve to calculate the proper selling price is going to sink some ships. A better plan is to keep an eye on discounts, incentives, and lease fine print to calculate the best deal. On something like a JCW, you're not going to find many dealers willing to dive that far below cost to move a car unless there's some money filling in the back end from the manufacturer.
Hey Zillon!! Good to hear from you. Hope you've landed on your feet.
FWIW, when I was doing the deal on my Clubman last year, there was a JCW 2-door sitting on the showroom floor with a big red tag on it and a deeeep discount posted. The Sales Manager told me they'd tried everything to move that car but, due to odd color combo and whatever, even at the low price there were no serious bites.
So, Zillon knows of what he speaks -- MINI dealers aren't in business to give away cars or lose money on deals. Don't be heartbroken if you don't get 4 or 5 grand discounted from the MSRP, but, you never will know until you try..... right car, right time, last year's model, well-qualified buyer ready to do a deal -- anything can happen.
Hey Zillon!! Good to hear from you. Hope you've landed on your feet.
FWIW, when I was doing the deal on my Clubman last year, there was a JCW 2-door sitting on the showroom floor with a big red tag on it and a deeeep discount posted. The Sales Manager told me they'd tried everything to move that car but, due to odd color combo and whatever, even at the low price there were no serious bites.
So, Zillon knows of what he speaks -- MINI dealers aren't in business to give away cars or lose money on deals. Don't be heartbroken if you don't get 4 or 5 grand discounted from the MSRP, but, you never will know until you try..... right car, right time, last year's model, well-qualified buyer ready to do a deal -- anything can happen.
I'm on my feet for now, but I don't have high hopes. Need to get settled in the new house, and then start searching.
Having the rug pulled out from under me at MINI hurts.
Hi all, potential new Mini owner. My wife has always wanted one and with the VW buyback, we figured it was a perfect time.
I was wondering if this is a good deal on this Mini or should we keep looking. The info is below. OTD with everything would be 27,293.86. We normally finaance through USAA but may opt for BMW financing if they can beat 2.99.
Any thoughts or opinions would be appreciated. Thanks!
With USAA I believe you can get an additional $500 discount. Also, MINI is currently running 0.9% on 2017s until the month end. Not sure if $500 loyalty discount can be had here too.
With USAA I believe you can get an additional $500 discount. Also, MINI is currently running 0.9% on 2017s until the month end. Not sure if $500 loyalty discount can be had here too.
Yep just checked the dealership website and it does apply. Not sure if it "stacks" with the already discounted price but it does not hurt to ask. 0.9 would be awesome. I should qualify for the best rate. Thanks!
After they tack on the "processing fee," which is pure profit for the dealer, you are still enjoying about a 12% discount from MSRP. Subtract the USAA discount -- visit USAA to get the certificate -- and you are getting a solid deal.
If you qualify for the current special interest rate on 2017's, your payments will be a bit lower than what they're showing.
If you are very careful about any add-ons they try to upsell you, this is a great deal on a great car.
I would ask about that processing fee to see if they will waive or discount it. If they won't, then try asking for an offset additional discount. If they won't, ask them to explain exactly what the "processing" involves. (You may wish to tell them you understand that in states like California, where labor costs are very high, the dealers only add about $80, so why is it so much more in your state???) If they say it has to do with preparing the car for sale, tell them it's your understanding that this is included in the price of the car from MINI. If they push back, and claim MINI doesn't reimburse them for prepping the car for sale, call MINI right there and ask them to clarify if the selling price of the car includes an allowance for the dealer to prepare the car for sale.
But 12% off, plus the USAA, plus the special finance rate, is, indeed a great deal as it stands.
After they tack on the "processing fee," which is pure profit for the dealer, you are still enjoying about a 12% discount from MSRP. Subtract the USAA discount -- visit USAA to get the certificate -- and you are getting a solid deal.
If you qualify for the current special interest rate on 2017's, your payments will be a bit lower than what they're showing.
If you are very careful about any add-ons they try to upsell you, this is a great deal on a great car.
I would ask about that processing fee to see if they will waive or discount it. If they won't, then try asking for an offset additional discount. If they won't, ask them to explain exactly what the "processing" involves. (You may wish to tell them you understand that in states like California, where labor costs are very high, the dealers only add about $80, so why is it so much more in your state???) If they say it has to do with preparing the car for sale, tell them it's your understanding that this is included in the price of the car from MINI. If they push back, and claim MINI doesn't reimburse them for prepping the car for sale, call MINI right there and ask them to clarify if the selling price of the car includes an allowance for the dealer to prepare the car for sale.
But 12% off, plus the USAA, plus the special finance rate, is, indeed a great deal as it stands.
Good luck!
Great info thanks! I am heading over tomorrow. I'll let you know how it goes.
It is a blast to drive! Handles similar to the 2 door but offers convenience. Love it in black as well. Seems like a great deal. I think they are having issues selling these, from ALL4's post above they are down 30% in Sept y/o/y.
Local dealer here wouldn't be offering up that kind of deal at this point on a 17.
