First of all, don't all tell me to use the search function, because I already did!

I'm weighing my financing options for my new MCS. I'd like to know what you did, and why. Specifically, did anyone out there choose the MINI Select financing, with the lower monthly payments and the balloon payment at the end? If so, why? What's the advantage vs. leasing in your opinion?

I kind of think that leasing might be a good hedge against long term reliability/quality problems. I could get out of the car at the end of the lease, and warranty, if I wanted to. On the other hand, I could just buy it at that point. Given my current circumstances, I think I'll be able to afford more per month in a few years (i.e. when the lease ends) than I can now.

On the other hand, you could argue that I'd just be dragging out the interest, and making the total cost higher in the long run.

Anyway, I just wanted to pick everyone's brains about financing/leasing, to see if I could pick up any nuggets of info that I haven't found in other threads.

Thanks for any insight you can offer!

 

I went with the select. Keeps the payments low, keeps the down payment low. You could pay extra each month if you want to reduce your final payment. My fiance is expecting her MCS soon, and she is going select as well, and for the same reasons.

 

Different view: I looked at Select and said no way because it wasn't much better, financially, than a lease. I don't remember the exact figures, but I believe under the Select plan I could pay $300 a month for 48 months, then owe a $13,500 balloon... or put a few thousand down, pay $340 a month for 48 months and own the car afterwards.

The car wouldn't be worth $13,500 after four years, so on the Select plan you are ALWAYS upside down. In return for a little lower monthly, you never build any equity in the car.

So I did it the old-fashioned way. It was no contest. You got to add up the total cash out the door for the whole ownership period.

 

This is the first car that I plan on never getting rid of, so I don't mind having to re-finance at the end. Plus, you can always pay extra on your monthly. Also, with select, the car is yours - no milage limitations. Lease, it's theirs.

My baloon will be much less than 13900 as well. The way these cars do not depreciate, when I have to re-fi, the value to loan should still be higher.

 

>>Different view: I looked at Select and said no way because it wasn't much better, financially, than a lease. I don't remember the exact figures, but I believe under the Select plan I could pay $300 a month for 48 months, then owe a $13,500 balloon... or put a few thousand down, pay $340 a month for 48 months and own the car afterwards.
>>


So the select only saved you $40/month vs. a traditional loan? You must have put down a lot of $ up front!

Anyone else want to chime in on this topic? Please?

 

Excuse me whilst I biz-ump this thread.

 

OK, one more bump before I give up!

 

I went with the Mini select as well
I didn't want to lease. We put on too many miles, I have modified it some, I raced it a little. I wanted to own it. Like most, I don't plan on getting rid of her for some time now.
I like the Selects lower monthly payments. It frees up a little more cash if needed. (I had to promise the wife to do a few home improvements)
You can always pay more, like a regular finance deal.
or you can refinance when the balloon comes due.

 

I'm dropping about 40% of the cost of the car as a down payment and financing the remaining 60% over 48 months. We've always been upside down when it came to the balloon payments associated with the smart buy type loans.

 

Oh believe me these cars will depreciate.They may not drop quite as quick as say a new beetle, for instance.But they certainly will depreciate.The select plan is basically an open-end lease that you can't give the car back at the end.It costs almost as much to do select in the end than if you did choose to lease and buy the car at the end.If you're not going to get rid of it, regular financing puts you way ahead at the end. I am proof that minis depreciate.I bought my 02 cooper s with sport/premium/leather with 15 k on it for 20k. The people I bought it from paid 26k out the door 11 months before.

 

Ha you all so got the 'great' depreciate bit completly wrong. My dad's car is an '04 and his car is still valued at over $19,000 according to Kelly Blue Book.

 

After about the second year, MINIs depreciate at a rate of about 8-10% per year--less in areas with higher demand--which is outstanding at any level. Also MINIs, like Corvettes and other specialty cars, retain higher residual values which makes them excellent lease prospects, if you want to go that route.

 

Well right know I am just looking for a new car, period and would greatly prefer it to be a MINI, my dad's first car was a MINI I want to follow this little tradition. We are both in the mortgage business and with it being slow right now MINI Select is very agreeable looking. Many experts expect the market to pick up by this time next year. With MINI Select can you pay above the payment each month?

 

Call Mr. Blue Book and have him send you the check to buy the car for what he says it is worth.

Blue Book is generally accepted to be high on MINIs and lots of other cars. It's a good guide to give you an idea of what the value is, but it's on the high side and if you try to stick to KBB value your car will likely sit on the market for a long time with little interest.

Ask anyone that has sold one recently, you usually have to price it below KBB to move it.