Hi, I'm looking at getting a 2014 Mini Hardtop, and I was just curious how easy or difficult it is to get the Mini Select financing. My credit score is around a 630, and between school refunds and work I make about $12,000 a year. I was just curious what they look at to finance an individual for a car, or if I'm still going to need my father to co-sign for the car.

 

Glad you're looking at joining the MINI family. Anyone response to your question would only be an educated guess. Your credit score is only fair, your income level for part-time work is modest. I would think it would be difficult for you to get any financing from a bank, credit union, or MINI without a cosigner for the loan.


Your first option is simply to ask the MINI dealer. Fill out the financing application and let them do the work. They want to sell cars, and many have some other external financing options (likely at a higher interest rate) outside of MINI Finance.


As a second option, if you are a member of a credit union, you should also check with them. Many credit unions (like mine) will help finance a lower income / credit score member who can't get credit elsewhere. But I still expect you'll need a cosigner in order to get a lower interest rate.

 

You Definitely will need a cosignor for a decent interest rate.

 

With such low income and a fairly low credit score, you will probably need a cosigner with regular income and good credit.

Not to sound like a "father figure" here, but as a student with limited income, do you really think it's appropriate to buy a brand new MINI right now? I know you probably see other students at your school driving brand new cars, but those are mostly people who are receiving support from their parents still or they are working their butt off while going to school.

I don't think buying a car with your federal aid refunds is the best idea at this point, but in the end of course the decision is yours.

 

Imo you would be crazy to buy ANYTHING NEW....
Heck, imo, buy a beater for $2000 cash (or whatever you can scrape up)....and save up....
Things in life have a strange way of happening unexpectedly...you buy a car with maybe a 3 year warrenty....but 5 years or more of payments...then you have bills...insurance... Nonwarrenty repairs...gas...rent...medical...dates....books... general life stuff.
With an income of 12,000$....many of it from LOANS for school you are getting refunded to live on....you have BIG bills to repay in the future... And most first job is often low paying....best NOT to have a car payment imo.....

 

You can't afford a new car and your credit is not good. Please don't buy a new car. When you can afford a new car then do it.

 

The likelyhood of doing it on your own? Zero.

MINI requires your yearly income to be greater than the price of the car you are buying. Your score isn't THAT bad, MINI only requires a 575 or higher, but with your low income and limited credit history there is zero chance they will buy you.

 

Reality check....
The loan (say $600+ or so if no downpayment) insurance (if in school, likely $200 a month), and gas (depends on where you go)is MOST of your income....

 

You cannot reasonably afford a new MINI on that income unless someone else is paying your rent and groceries.

You may be able to reasonably afford a used MINI. If you do consider that, here's some advice I offered in response to a similar question on reddit:

***
Get a Celica or Civic, unless you already do all your own wrenching and have a parts budget set aside. But if you must get a mini…

Avoid the automatic; they die expensively and at astonishing rates.

Avoid the supercharged models. They don't die expensively but they do wear out around the age you're talking about and can be somewhat costly to replace.

Check all for rust under the door sills.

Ask [all of these questions and check all the items](http://soopercooperinfo.com/Usedmini...questions.html). Seriously.

Read MotoringFile's [R50/53 Buyer's Guide](http://www.motoringfile.com/mini-r50r53-buyers-guide/) to learn the commonest issues with each model year.

For the love of god do not buy one with an automatic.

Join NorthAmericanMotoring.com and make friends. You'll thank them when you have repairs and they have advice and howto guides already written up.

Buy a service manual. Ideally, get the Bentley, but Haynes will so in a pinch.

Lastly, buy a Celica or Civic, and set aside the money you don't spend on repairs to buy a newer mini after you graduate.

Then, if you are like me, throw caution to the wind, do the wrong thing, and enjoy it while it lasts. :-)
***

Still reading? Spend $4000 on a used Honda Civic, Toyota Celica, or maybe a Scion (the xA has been around long enough to be cheap used).

Save your money. Get a better paying job. After doing both of those, then buy a new MINI.

But buying a new, premium (almost luxury) car on income barely above the poverty line? Just not a great plan, financially.

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I'm assuming that by "school refunds" you mean what's left over after paying for tuition, etc from your student loans.

Nobody needs to be buying new cars with student loan money. Defaulting on student loans is at an all time high and one reason might be because people pull crap like this.

You're in school, focus on school then when you graduate and get a career job you can buy a car. It will feel so much better that way too.

 

Actually, you may default but you cannot easily discharge student loans anymore. Any other kind of debt can be restructured or discharged in bankruptcy, but student loans only in very limited circumstances (among the three required elements is persistent poverty).

The original poster should think long and hard about the implications of that before using student loan money to buy a depreciating asset.

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The MINI select financing also includes a balloon payment at the end of the loan.

Maybe a good used one would be a better choice for you.

 

All good information here. Live within your means. If you're unsure now, it's probably a bad idea.

 

I know it sucks to hear the advice you are getting here when you are young and want certain things but, you are not ready to get a new car. Take the time and save money finish school and buy you one for your graduation.