OK, I have noticed that the APR financing of 1.9% has been extended for yet another month. I've already checked with my MA and know that I qualify for this deal. Here's the problem: I want to order my MC (OxyB/w, chrome exterior, white sport stripes, tuscan beige/anthacite interior... needless to say this one's not at my dealership, lol). But I can't know for sure whether the financing rates will still be this low come June/July (although it doesn't seem unlikely, given the current economy).

I have enough to pay cash, but can't access this money until August/September. Anyone know if I'd be allowed to order now, see if the financing is there in July, and if not leave it at the dealership until August when I can pay cash? (no way in heck I'm paying 5.9%!) Is that kosher? I'm asking my MA as well, just want to know what you guys think.

 

IMO... paying cash up front is always a better deal on a car, period. No interest payments, no fees, no financing. I would wait until you have access to the money to order, then order and hand the dealer a check for the car when you pick it up.

There is no advantage to you to finance the car at all, unless, of course, you need a car asap, in which case, you'll be paying the price for taking advantage of financing the car now.

 

Sorry, I forgot to mention, I would save money by taking the 1.9% financing, as the money would be in my money marketing account, which earns around 3%. So it actually does make financial sense to prefer the financing for 36 months instead of parting with it all up front.

 

Depends on how bad you want the car.

Scenarios as I see it:

1) You order now, and get your car sometime in June. The financing is still there, you put down some money on the car, and put the rest in your money market.

2) You order now, and get your car sometime in June. The financing deal is no longer there, and you get something like 6% from a credit union or something. You put down some money on the car, and pay it all off in August when you get access to your funds.

3) You wait until August to order, get your car sometime in September, and pay cash for the car with your newly acquired funds.

I'm going to guess that the 1.9% won't last all the way to September... so, if you don't order now, I think you'll just end up paying cash.

 

So, you don't think I can order it now, and if financing is high in July, wait to buy it until August? I've never bought a car before, so I don't know how nice they would be about letting it sit in the lot...

 

I don't think you can no. I think the dealer can sell the car out from under you if you do and MINIs fly off lots in the summer. They won't want your car to sit on the lot for a month.

 

When I was in ordering my car, there was a form that stated you ARE required to pick up your Mini within 3 days of it arriving on the lot. I think there are charges otherwise. You have to understand that every car on a dealers lot costs them money. Your car sitting there for a month would cost them the space of a vehicle they could possibly be selling and in that way you are costing them money.

Good luck either way you choose though! For me, I would probably wait till I had the money and just pay it off.

 

If you order a custom order, you have to put $1000 down I believe.

If you don't take order when the car arrives, you forfeit that deposit and the car goes on the lot and can be sold.

 

OK, thanks everyone for your replies. I'm going to just have to compare what the price differential is between the 3 possible scenarios (1.9%, cash, and 5.9% for 2 months + cash), and see if I feel comfortable taking this risk. I doubt it's by more than a few hundred dollars either way, so maybe I'm overthinking it...

 

Is there a reason why you could not order the car now, get the financing, then simply pay it off when you get your cash in August? Under the law the bank cannot impose a penalty for paying it off early (like they used to in the old days).

That way you get the low APR and eliminate the debt come August.

Am I missing something?

 

I bet its less than you think. I think the difference in a $15000 loan at 1.9% for 3 yrs and 2.9% at 4yrs is $400 interest.

So, floating it for 2 months is probably nil.

 

If they order now, they wont get it until June, and the financing only applies when you take delivery... so its up in the air whether it will still be there or not.

 

That's a good point. And I forgot that I can pay probably $10,000 up front in July (I have some money, just not enough to buy outright). So if need be I could pay $10,000 in July, take out a $15,000 loan, and pay it back in 2 months. Total amount lost to interest would be like $147, I think.

I'm finding it more difficult to wrap my mind around the money saved versus cash when using 1.9% financing and the money is being kept in a 3% MMA for 36 months, and depletes each month. I feel like this is some GRE problem from hell... I should probably just call my dealership on Monday!

 

Because I was bored:

15k @ 1.9% = $46 interest in 2 months
15k @ 5.9% = $72 interest in 2 months

<$30 difference.

Go order that baby

 

Yay, thanks.