Hi guys, I plan on leasing a 2008 Cooper S for 3 years at 12Kmi/year. I figured out the monthly lease from the miniusa website. Is there anything I need to keep an eye out for when signing the lease, any gotchas or dealer scams to avoid? I plan on returning the car at the end of the lease, i was quoted a residual of 65% and 0.325 APR. Since I plan on ordering tomorrow, would appreciate feedback from those who have been through the process, just don't want to get ripped off. Thanks!

 

The residuals on the Minis are 77% at 3 years on the open market from what I just was reading in the WSJ. Best residual of any car!

65% is too low.

You are ordering on a Sunday????

 

65% is what is quoted at http://www.leasecompare.com/auto_lea...hp?f=18&t=3046 for 15K/mo for an S model. For 12k/year add 2% more so it should be 67% residual. Are all mini leases closed ended?

 

Leases are usually quoted off a residual and Money Factor. For my April lease on 2yr/10k it was 75% and 0.00230 (I have excellent credit).

You lease aquisition fee can be marked up. Base number will be $625, and it can be $825. Dealer doc fees vary too.

The MF can be marked up too - but that's harder to tell on Mini.

You can significantly lower your payments by offering Multiple Security Deposits if they are allowed in your state. Basically, every security deposit you offer up to a maximum of 7 will reduce the MF by 0.0004. MSDs are better than cap reduction - if the car is declared a total loss in the lease term, MSDs are refundable. Cap reduction isn't. If you're not an existing BMW FS lesee, you'll also be asked for a single security deposit.

Post your quoted residual and MF numbers. Your state would also be useful from a tax perspective.

Cheers,

John.

 

matthew here are the numbers I have from them Residual 65% APR 0.325 Term 36 months Mileage 12K MSRP/CAP 25100 Net Cap 24622.70 Cash down on signing for C/R Tax ($36.99), LIC ($304.75), Sec Dep ($400), Bnk Fee ($825) 1sst payment ($392)=$2500 Monthly payment 392.02 (363.82 + 28.20 tax) I am in california. Thanks for your help.

 

Of course if the car is worth more that the residual quoted, buy the car at lease end and sell it privately.

 

Leases have money factors not APR's the .325 money factor quoted equates to 7.8% which is pretty high vs financing. With that said you could buy down the money factor using MSD as another post mentioned. The dealers usually mark up .0020 basis points from the buy rate.

 

ymee,
I'm glad you feel comfortable enough to post these questions and information here on NAM. I also glad some other members have responded. I don't know much about leases, but recently saw a post on NAM that financial management is not appropriate. I disagree wholeheartedly and this is the reason I am glad to see the exchange you started.

 

At this point, I'm going to refer you to a thread on Bimmerfest - it relates and explains the terms in leasing.

http://www.bimmerfest.com/forums/sho...d.php?t=146090

As BMW FS and MINI FS are one and the same, it's highly appropiate.

Cheers,

John.

 

is the Buy Rate same as Base Rate and is it linked to your credit score? I have excellent credit and the first number the dealer gave me for Buy Rate was 0.325. I see from online sources that the Base Rate for MCS is 0.00219. Thanks

 

I see no reason to ever lease a MINI unless you're so strapped you can't afford the marginally [$40-ish] higher monthly payment. A low-mileage '02 MCS still sells for 70% its base price [options don't add value].

Why do you feel leasing is of value to you? If we were talking Chrysler or Ford I wouldn't bother asking as their residuals are crap the instant you drive off the showroom floor, but the MINI is the utmost exception.

 

Why lease?

1. It's a known payment for a period of time.
2. I know I want a new car every 2-3 years.
3. Somebody else takes the risk on depreciation.
4. The numbers are pretty close if you strike the right deal between leasing and financing - if you're going to be looking for a new car in 2-3 years.
5. Fixed buyout price at the end of the contract.

Leasing isn't for everybody but does work for some - me included.

John.

 

I saw base rate of 0.00219. The rate I got from the dealer was 0.00230. The max BMW FS will allow as markup on the rate is 0.0004.

When I researched, I found out that Mini does use regional rates. My 0.00230 rate was in NJ.

Cheers,

John.