Just thought i'd share this recent experience i had leasing a 2008 mini, which hopefully others will fund useful. While i found lots of threads regarding mini financing for puchases, there was less on the subject of leasing.

There seems to be a misconception regarding money factors on minis - that because of the popularity of the mini, the money factor (proxy for interest rate) should therefore be higher. THe popularity of the mini is reflected in the price (its why most of us seem to be paying list price, or even higher), and the residual factor. The money factor is just the cost of money, which does not vary by car. Because most people don't look beyond their dealer for lease financing, they believe that they are locked into the high money factor that mini financial quotes. Here's my story.

When my mini arrived, they tried to push me to pick up the car right away and take their lease financing offer (a money factor of .00345, 8.3% interest rate). When i told the manager that i needed a little time to get the financing together (i had been given a wide time frame about when the car may arrive, and since rates change monthly and i wasn't sure which month it would fall, i hadn't arranged it ahead of time), since i had seen lower rates on Leasecompare.com. The following happened:

1. The manager told me i could take their lease financing offer but switch it out if i found a better offer within a week. What he explained didn't really make sense, but because the bootom line is that you can never get out of one financing and into another without a lot of extra costs, i told him no.
2. THe manager then told me that he couldn't keep the car any longer (first attempt to intimidate me into taking their offer). WHen I reminded him that he had taken $1000 deposit frmo me and that i had a legitimate right to look for financing given the high rate he was quoting, he backed down
3. He then asked what i thought i could get else where, when i told him something in the 20s (i.e. below .00300, or 7.2%, he acted skeptical). he then told me he had never heard of anyone completing lease financing outside of the dealership (interesting, since he had just told me minutes earlier i could trade out their financing if i found a better offer within 7 days).

so i went away, found an offer with similar residual rate and MUCH lower money factor (.00229, or 5.5%) through leasecompare.com (the lease would come through US Bank). When i called the manager to tell him i'd be leasing through someone else, he asked me the rate and the provider, and he told me he could match it. He then said he always had the ability to source through US Bank instead of Mini financial, but didn't offfer that option because they are more difficult to deal with (likely story).

If i had known this ahead of time, i would have saved a week of headaches, and one less credit inquiry that is now reflected in my credit report. The dealership is i'm sure incentivized to get people to lease through mini financial at these higher rates. If you are informed for your conversation about the financing rates, you can probably handle the whole thing in one meeting and get them to match competing offers. Leasecompare.com will tell you the main deal points for a lease available to you from their network of financiers. Also, some dealerships may tell you that they will not deal with outside financiers for leases. I'd imagine if you threaten to take your business to another dealship that will, they'll probably change their tune (do this before you order a car if you are having it custom built!)

one word of caution, make sure you are aware of the other lease points besides residual and money factor, most specifically the lease acquisition fee. I was in the room signing the papers when they sprang on me an acqusition fee that was a several hundred dollars higher than i thought was right. BUt since i didn't have that figure from the competing offer on hand, and i hadn't hammered out this point previously, i didn't have a leg to stand on.

good luck.

 

You are right. I've leased cars through other financiers over my experiences. You can do this in a couple different ways.

1. Dealers always work with a number of finance companies. Ask them for a comparison. You're right, they prefer to deal with their own financial arm, and if they have incentives it can work in your favor, but not in the case of the Mini or any other hot selling car.
2. Remember that from a dealer's perspective, they are selling the car; to you, or the bank. So you can take the cash deal to any bank, or leasing company and the sales still goes to the dealer, and the financial transaction is between you and the bank.