I'm considering buying a Mini Hardtop very soon, using the select payment ownership program to maintain low monthly payments for the first 3 years.

Is (are) there any snags, hitches, or hidden misgivings within this offering?

 

I'd like to know this as well. I'm taking delivery in October/November and I plan on going with the Select plan for the low payments.

 

From what i recall they are similar to a lease where you have to buy out the end. So think of it as two loans. A 3 year to cover the depreciation (like a lease) and then the remaining balance owed. So if you then do another 3, 4, or 5 year loan to cover that. I think you are better off just doing a lease or a 5 year finance off the bat.

 

First off it depends which state you are in. TX and IL are Ownership States. All others are MINI Select.

How it works.

MINI Select -

Make low monthly payments just like you would on a lease. but at the end of the time period 3, 4, 5 years there is a Ballon payment due. You then have two choices. (NO mileage restrictions as on a lease though.)

1. Make Balloon payment in full

2. Refinance the balloon payment to another loan.

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Ownership -

Same as above but with Over Mileage just like a lease and you have a third option at end of low payments time, and that is to return the car.

So if you are in TX or IL it is similar to a lease except that you can modify the car and not have to return it to original like on a lease.

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My comments. In the long run the cost is higher i.e. initial loan payments and balloon payment add up to more than what a regualr loan payment will add up to over time.

If you really plan on getting rid of the car when the low payment time is up then go with a straight lease. At least in some states that can be deducted off your taxes in some way or another.

 

We ended up getting 0.9% financing via BMW Financial services... might want to snag that deal before it goes away.

MINI Select isn't a terrible way to go, if you do something smart with the money you are saving on monthly payments. If you were to put, say, $100 a month into an investment, at the end of those four years you would be sitting on a bit o change. Now, if you spend the money you are saving on stickers and MINI trinkets... well, you know. I tried out MINI select once before, and loved it. At my balloon payment I just traded the car in and the dealer paid the car off and then applied the rest towards my new car. To each their own, I guess.