How does the dealer control how high or low they can make the balloon at the end of the loan?

I'm assuming that a person has to put down as much as possible in order to make the balloon less, but my salesperson said he can make it as high or low as I want.

Point is I really don't want to put more down than I have to.

 

Just my opinion, but if you have to arrange a balloon payment type of loan, you can't really afford the car.

 

The maximum balloon percentages are set MINI Financial Services and vary by model

 

And, the amount down is irrelevant to the calculation of the balloon amount -- more down will of course lower your payment (you are essentially paying the loan down from the amount financed, which would be lower with more down, to the balloon amount).

 

Just an FYI - I have been screwed over twice by MINI Select. Both times, when I went to trade in my car, I was upside down because of the balloon payment that would have been necessary at the end. It's definitely a way for someone to afford more of a car than they typically would, but the downside is that you will have to hang onto the car for a long time to make it worthwhile. if you want to trade it it before the end of the finance contract, you will be upside down.

For my Countryman, I went with traditional 1.9% financing through MINI Financial. I had to roll a $5400 difference into the purchase price. They payment is $100 more per month than I was paying for my 2010 R56, but once I make the last payment, I'm done. No balloon or anything else.

 

I have never heard of a balloon payment for the purchese of a car. I have leased cars that had a residual payment at the end of the lease. At the end of the lease you basically had 3 options (1) turn the car in (2) pay off the residual amount either by financing it or paying cash or (3) sell the car and pay the residual amount and keep any money that was left over. Maybe California laws are different(would not suprise me)

 

It always amazes me that financing a car is so mainstream, what happend to paying cash?

 

Really?...the Economy!

 

Or you'd have no problem paying cash, but could do with the addition to your credit file like me. At 0.90% its cheaper than paying cash.

 

Good point. If your cash is invested and making more than 0.90%, it doesn't make sense to pay in cash.

Or maybe you just like to keep your cash on your side of the ledger and can easily fit the monthly payment into your budget.

There are plenty of financially sound reasons for financing vs. paying in cash.

 

MINI Select strikes me as a horrible deal. I'm considering a lease, but favor the 1.9% finance deal to purchase with 20% down (positive equity from my previous vehicle). By this option, I literally pay nothing out of pocket.

I'm wondering what other products the MINI Finance guy will foist on me. I would like opinions on MINI's extended warranty program and the extended maintenance agreement. Any thoughts?

 

You definitely do not want to "refinance" a financed car loan, doesn't matter how much you want the car.
Our MINI purchase 5+ years ago was financed through our Credit Union, if you have the option of joining one I'd go that route.

Our latest Auto Loan (6 days ago) is also through our Credit Union, but not a MINI...we walked in, told the dealer what we wanted to buy, sat down to talk trade, got a very fair trade in value, then handed them a check for $3000, total down over $8,000...that's the way you buy a car, remember you can always pay more a month, but once the Payment is in writing that is what you are expected to pay, nothing less!!

With a reasonable payment "SMAUG 2" will be paid off sooner than our other 2 cars, my MINI was paid off in 3yrs. 3mo. and 3wks. on an 84mo. loan, my Husband's Kia Soul was traded in on our new 2013 Mazda 3 i Grand Touring Hatchback!!