Hello all. I posted here last summer for the first time, as I was thinking of buying a Mini. Well.. here we are almost a year later... and I am finally ready to get one (probably in June/July).

So I was just wondering..... has anyone here done the Mini Select program to buy a Mini. I guess it is sort of a cross between a lease and traditional financing. Any input or information on this program would be great.


Thanks!

Bill (future owner of a BRG Mini!!)

 

"Mini select" in reality works just like a typical lease contract, but the main difference is that the car is registered in your name, not the bank's like in traditional leasing, thus does not require you to purchase insurance policy with the highest coverage limits (100/300/300) and instead you can use your own "acceptable" coverage limits just as if you would have purchased or financed the vehicle.

To me the main advantage of MINI Select is not having the added expense of higher insurance costs typical of lease contracts. In some states where leasing a new vehicle may be more expensive to higher taxes, MINI select is a better option. I have been told than here in Florida, it is cheaper to lease outright a new MINI than do MINI Select, so talk to your accountant to find out how does this apply to you.

Also keep in mind that MINI Select may have higher "money Factor" or "Interest rates" than a comparable traditional lease contract.

I purchased my MINIs outright. I did lease a car once and while it was a good experience overall, I never liked the fact that I had to return a nearly new car and have nothing to show for at the end of the lease. I take pride in ownership (Specially when MINI is concerned) but for some people leasing works out better in thier own particular financial situation.

 

Thou the interest rates are a little higher, they're usually at the end of the note making your payments lower during the lease period. If after the end of the term you decide to keep it, then you can re-finance the ballon payment. I've leased the last 3 new cars I've owned. This option also has another plus to it. Should the car you buy turns out to be not so good, then at the end of your lease you give it back to the bank and walk away.

 

Just remember, in MINI select, you have no choice but to buy the car at the end of the lease, and, from what I remember, BMW will not finance that purchase. I went with traditional lease, and will purchase at the end, or turn it over one of these days.

 

If you look at the total dollars you're putting out under MINI Select versus just buying the car via traditional financing, they are MUCH MUCH higher with MINI Select. You are paying through the nose in the long run to have a slightly lower monthly in the first years of the MINI Select program. I asked for a MINI Select quote when I was buying my MINI last year... I wanted to finance about $15,000... don't remember the exact numbers, but I believe under MINI Select I could have paid about $300 a month for three years, then owed a balloon payment on top of that of about $12,000. With standard financing I could pay $330 a month for four years then own the car outright.

As I say, I could be off a little, but I remember thinking the MINI Select option was a shockingly bad deal.