Please be honest...

I would like some feedback please. I went into the dealership yesterday to "order"my new 2008 Mini Clubman S.Here is a breakdown of my car:

Dark Silver, Leather Lounge(Black), Premium Package, Multi-func. steering wheel,Chrome line interior,Armrest,piano black , Xenon headlights, Aero kit.

The total was $ 30,600, I choose the Mini Select financing for 48 months, $ 2,000 Down Payment, my final agreed monthly payment is $ 463.84 (tax included), What do you guys think???Please advise!!!

Could I probably get more attractive financing deal without using BMW? I have excellent credit...

 

You did well. Personally, I really like BMW financing. However, others here have had very good experiences with PenFed. It offers a much lower interest rate. However, I am not sure if they have a program similar to Mini Select (which is a great program - especially if there is a possibility you might want to trade your car in later). Check out the discussions for "financing" or simply "PenFed" and "Mini/BMW Financial"
BTW - Mini/BMW Financial is rated tops when it comes to customer service.
Enjoy your new Clubman!
CJ

 

Sounds like you went with a lease... If you had financed $28600 your minimum payment would have been in excess of $600. So as long as you can live with the limits of a lease (low amount of mileage) then, yes, you did okay.

 

this is the second thread you posted....

 

https://www.northamericanmotoring.co...d.php?t=147185

 

Some things to consider.

Using Mini Select is great if you are planning on turning the car in after a short (2-3 year) period of time and then getting a new one. So lets look at the numbers. estimated depreciation number below is as stated to me 3 months ago when i was looking at using Mini Select to finance a car.

Lets say you turn it in after 3 years toward a new car. You did not state how much the taxes were so lets leave those out of the equation at this time.

Mini Select finance amount $28600
Monthly payment $463.84
Depreciation per year 9% (1st year $2754 2nd year $2506 3rd year $2279)
Trade in value after 3 years $23061
Monthly payments (463.824 * 36) = $16698.24
total money spent (16698.24 + 7539) = $24237.24

Now lets say you keep the car. after the 48 months

Mini Select finance amount $28600
Monthly payment $463.84
Depreciation per year 9% (1st year $2754 2nd year $2506 3rd year $2279 4th year $2075)
Trade in value after 4 years $20986
Monthly payments (463.84 * 48) = $22264
Total still owed on vehicle $20986 ( yes you still ow the depreciated value)
total spent for car = 20986 + 22264 + 2000 (down payment) = $45250 (wow)

Traditional Financing
Loan amount $28600
finance rate 8% (probably higher than what you can get)
Monthly payment $702 (approximate without knowing exact taxes)
Money spent on loan 702 * 48 + 2000 (down payment)= $35696

That equals up to a $9000 to $10000 savings.

If your credit is excellent as you say you could probably get down into the 6% - 6.5% range. which would save you even more.

Now when you sign up for Mini select they will tell you what the depreciation value is so that you do not get a surprise when you go to turn it in or pay it off. Also remember that Mini Select will give you limited mileage as well although it is more than a traditional lease (or at least in my case it was).

The reason Mini Select is good for short term owners is that they guarantee the trade in value which can not be dome thru traditional leasing or traditional financing.

Feel free to ask if you have questions

 

Wow-great insight and help- I decided to pay cash for my 08 Clubman because I can't keep up with all the numbers. Plus I don't like getting monthly bills in the mail.

 

You didn't include your interest rate, but be sure to check with your local credit union. Personally, I'd spend the $2k on something else. Accesorize!

 

You can only "do" what you can do....
The available possibilities are limited only by the options that you find.

Do you leave your invoice sticker on the window?

 

You could lease the same car for 36 months with $0 down for less....what kind of crazy interest rate are they making you pay that you only take $10k off the principal after 4 years?

 

the MSRP is 30,600, I was going to put 2,00 down for the 48 month Mini Select program. I believe the rate they factored was about 8%. You think I can lease the same 30,600 car for 36 months 0 Down and pay less monthly? My credit score is 750 +. I was not even sure if you cold build your own and lease it. I am certainly a rookie in the Mini world. The car wont arive here till late September so I have time to find whats best ....

 

Just a quick question - not meant to be critical - if the money is too much, why not deduct some of those options?

 

PenFed has a similar program which I am doing. Basically you get a lower payment up to 5 years with a final balloon payment at the end of the loan. The interest rate is 4.5% for up to 5 years which is .25% higher than their traditional finance program. Unlike a lease, you don't have the option to turn the car back into the bank. You have to send the balloon payment either to pay off the loan or sell the car and send them the balloon payment to complete the contract. The PenFed program is actually a good deal. If you stick with the program and make the balloon payment at the end you still end up paying the same amount in interest that you would have paid had you gone with the traditional higher payment over the life of the loan. The nice thing about having a lower payment is that you can send them more each month and have a lower balloon at the end and save money on interest. The best part of this program is that the car is registered to you and not you and the bank which means you have no mileage restrictions and can perform any mods you want without getting dinged for it at the end of the loan. Plus the money you save on monthly payments in the early going can be used for mods.

 

If you're credit is good and you know you want to purchase the vehicle, you might consider going to a local credit union for a standard auto loan. What's interesting is that some of them have extended terms to lower your payments. For example, at 84 months, your payment would be close to that of a lease. You could, at any point, pay off the loan early with no penalty - reducing the interest you'd have to pay.

For example, longer term auto loans in Phoenix are around 5.75 to 5.99 with FICO scores above 735.

Good luck!

 

Never, ever, ever, ever take out an 84 month car loan. EVER.

 

hmmm.. never's a pretty harsh word. If a person pays the payment continually for all 84 months, I agree it's not a good idea. My comment was toward rolling your own "select" and paying it off much earlier avoiding the extra interest. If a person prefers leasing, that's a different story.

In the end, it's all about what a buyer is comfortable with and we all different - why else would MINIs come with so many options?