Thinking about getting another MINI - but that's not the crazy part. I'm thinking about trading in a 2010 Lexus IS350C I got in November to get said MINI.

The bad news is that I would be taking about a $10k hit in depreciation. But here's why I'm even considering it:

The numbers:
2010 Lexus IS350C - paid $53k, offered tenatively $43K, owe $36k (My cabrio kept a lot of it's value for a 4+ year old car)

If I were to get a new Clubman I'd drop my payment from $777 a month to $338 and my debt on the car would go from $36k to~$24K.

If I were to get a new Cabrio the numbers would be similar but the payment would be about $450.

I had been on the Dave Ramsey plan until I got the Lexus and the idea of having more money to pay of my debts and start seriously saving for the offsprings college and our retirement sounds really good.


So, am I crazy?

 

I don't think so. I am coming from Acura TL 2009 with Tech Pkg. and what I think in the additional of savings on the monthly payment is the driving feeling and premium quality of european cars that no way you get in Japaneese cars.

 

As Shakespeare put it so long ago; "This above all: To Thine Own Self Be True." I say, if you want it, you should go for it, as life is much too short.

 

I think the crazy part was paying $700+ per month for a freakin car, but that's just me.

 

It's all whether you think it's worth it or not.

I presume you bought the Lexus new? And you're going to buy the Mini new as well? And you're going to trade the Lexus in rather than sell it yourself? And did you do your research when buying those cars and know that you got the best deal possible?

Those are the most expensive ways to buy and sell cars. You always take a big hit when you drive a new car off the lot. And you always take even more of a hit if you trade in your old car to a dealer.

Try these things next time:

Buy used, not new.
Do your research and know what the car's really worth.
Never, ever, pay full retail or MSRP.
Sell your old car yourself.

Hard lessons to learn when you see your hard earned dollars disappearing by the thousands.

 

+1

 

Yeah, the monthly payment is what I look at every month and say "what was I thinking" - especially having gone over a year after having paid off my MINI before the trade in. As far as buying used, I'm looking at used MINI's online but the difference in price just doesn't seem to be that much - especially when you compare the 1.9 interest on the new ones with the 5% on what I could get on a used one.

 

Not even that, but a Lexus. That convertible was 53K?!??! At that price get a freakin BMW. what a rip off. So yes trade that in for a mini, much better car for the money.

What mini are you getting specifically? S, non S?

 

no... For me, it's just that. $777 could be a mortgage payment or rent, or retirement savings. There is no reason to be paying that for a car no matter how few years the loan might be for. Sorry. I just don't get it. I've owned nice cars. I have driven nicer cars. I love finer things.

But I don't afford it by getting into debt - especially if I feel like I am over-extending myself to do it.

At the end of the day, as cliche as it sounds - a car gets you from point A to point B. If you are vein enough that you have to have the most expensive thing on the road - go for it. Personally I am happy to own a nice car, that I got used, in perfect shape, for thousands upon thousands less and have paid off with no car payment.

Again, this is just me.

 

The depreciation on the Lexus is a sunk cost. What you do now has no effect on it at all so it should not be a relevant factor in your current decision.

 

Here's my Take on Things:
1) You're going to Lose what ever you do.
2) You will have more than Double $$ to put towards the Principal on the New MINI Loan. (777-380=397) This should help you pay off the New MINI Loan in Half the Time.
3) Pay Off the New MINI Loan ASAP, don't even L@@K at other Cars.
4) Once the New MINI Loan is Paid Off you will have that $777 to put into a Money Market/Investment Account and have that Retirement Nest Egg that we all need, but seem to NEED Material Things MORE.

I'm not going to Lie...I'm right there with you (not in your situation), I like the "Finer Things" too. I've also learned that by Paying off our CC's every month I now OWN all of those things I slapped Plastic down for Last Month (a New Samsung 32" HDTV, for our Bedroom, to be exact).

Not Molly of course, but I've got a Plan to Pay her off by April, on a 7yr. Loan=3yrs. of Pmts. Due to Medical Expenses (Heart Surgery) I may not make that Goal. We have a Rule too, only 1 Car Payment at a time, so paying off Molly will allow US to get my Husband a New(er) Car and get our Gas Guzzling '01 Dodge Durango out of our Driveway.

I have a similiar plan for our Mortgage. I put into Saving 1/2 of the Mortgage Pmt. every Payday, on the 2nd Payday I pay the Mortgage, as of May 14th our June Mortgage Pmt. has already been made. I don't know how to calculate how much in Interest we are Saving, but I do know that it is Saving us $$, regardless of the figure, I feel Great about being a Dave Ramsey Follower to a point!!

 

I'm going to look and see what the dealer has on the lot tomorrow when i go. They seem to have a pretty good selection right now and are seemingly very eager to get them off the lot. One thing I've learned from driving the 350 - at my age all horsepower is doing for me is tempting me to get into trouble. I'll probably drive non-s and see if I can live with it I'm looking at all three models two but my heart is probably in the drop-top.

 

Do it!

 

Get the new Mini!!!!

 

Isn't there a recall on LEXUS?

 

Not on the one I have inimini2007 - but I think it's the only model that doesn't lol.

 

How do you spell LEXUS? T-O-Y-O-T-A!

I bet you can get that JCW Convertible...close or over $40K.

 

If you wait for a few more months...you can get the new refreshed engine...or you can get a good deal with the 2010 that are left on the lots.

 

With the financing deal they have going on right now I'm mainly looking at the Clubman and Cabrio. Wish my better half could drive a manual because that is what I really want :(

 

Been out of the MINI loop, what are they doing with the engine again?

 

My wife's lease is up in Sep 10 on her 07 R56 MCS...

We are trying to extend the lease for up to 6 to 7 months so that we can go straight into the 2011 Countryman (Traveler).

We had Three MINIs but are now down to Two. We gave the R55 Clubman back. We currently have an R56 and an R52.

 

My 07 MCS Vert (R52) and 07 MCS HB (R56) are Autos...wife wants it that way.

 

Tex,

Look at www.motoringfile.com (MINI News) for the details of the refreshed engines.

The JustaCooper will be getting around 122 HP and the "S" should be getting around 180-182 HP.

Lorin

 

The only crazy part is that you want to trade in your car. Sell it private party! It may take a little bit of time but instead of losing 10K you'd likely only lose 5.

As for your better half. I was thinking the other day as I got into my better half's Subaru that I'm driving while he does my stereo system how thankful I am that we both drive manual so we never have problems if we have to drive each others cars. Teach your guy/girl how to drive stick! My little sister learned on manual, and I'm gearing up to teach my baby sister how to drive the MINI this summer. Everyone should know and if he/she doesn't want to know then they don't get to drive your car! That sounds like the perfect solution to me.

 

Interesting read on the article inimini2007.

Cavalier Cooper, as far as selling the car rather than trade in. How much would the effective difference be when you factor in sales tax. The few IS C's for sale are going for about 48K so there in fact is the 5k you were talking about. However, and maybe I don't know, if you don't trade in a car you don't get to deduct the difference in sales tax.

If this is true, lemme do the math out loud as I type (already got my shoes off for this). Texas sales tax is 6.5 percent. ~$27k for the mini times 6.5% = $1,755 - $5k = 3245. So that's not a bad difference. The trade is just so easy though :|