As inflation goes up, your money is worth less and so is your car. Your loan is is a constant. If you have a good interest rate say 3.9, like I got, you should NEVER put down one penny. You can use your cash for better things, including an emergency fund.

 

again? anyone? testing...

 

KBB gives your retail value as 20,700. I'd think you should be able to get that right now with how hard people are looking at getting into higher mpg cars. You could always put it up for sale at that price and when you get a bite you do your search for the car you want. there are also a few EB MCS's within 300 miles of you.

 

http://www.autotrader.com/fyc/vdp.js...en&cardist=273

 

I think that's a little more than people would really want to pay. I've been KBBing it alot, and although i could easily throw it in an ad for that, i don't think i'd get many serious bites.

i could TRY. And i've been thinking about it more and more, and it may also be smart for me to keep this one until it's in my name, and wait til i move out so i can keep the great gas mileage.

But if i see a great deal on the perfect mini, i WILL look into it. Just stinks when i jump on it too late :P

 

Ok, the loan is a constant. So you KNOW how much you lose every month. Inflation is a variable (and has been at record lows for a while.) So you're saying that you should keep BOTH variable depreciating assets (the car and the cash) as well as PURCHASING (processing fees) a third fixed cost liability (the loan.)
If you don't have the cash (i.e. need it for an emergency fund) and MUST have the car, I can understand. In a period of hyper inflation, a fix rate loan doesn't make sense (i.e. 5% inflation vs. 4% loan) as the cash you 'save' from the loan costs you 5%. (Scenario - you give me a 4% loan for $100. At the end of the year, I owe you $104. I put my $100 in the bank and now it's 'worth' $95 to buy other goods, but it's still $100 (plus interest.) Unless the bank paid me more than 4% interest, I lose.) In a period of hyper inflation, you want to buy goods NOW, because you'll be able to buy less of the same goods, with the same cash, in the future.

So I come back to the same conclusion. Given that you HAVE cash (or other liquid assets) a loan makes sense if you can earn more interest than you are paying. If you don't have cash and you want the car, well, a loan (or robbery) is the only answer though, isn't it?

 

What? No MFSW or seat heaters? Might as well drive it into the Atlantic.

<finance geek hat on>
Given an efficient market (but it's not) since you're swapping near identical goods (MINI), the cost delta (difference) SHOULD be the same as new (less depreciation.)
If the new delta was $3K (call it $3.25k, 'cause you want the MFSW, you know you do ) after two years, maybe it's dropped 25%, or roughly $800, so the delta is ~$2400.
Now if you're willing to take an older model, that should cut the delta somewhat, maybe $1500-2000. You'd have to do a market survey to see what similarly equipped/mileage cars from different years sell for.
Given your statement re: the last EB, you aren't willing to sacrifice mileage, which is an easy way to reduce the delta.

So you should expect to pay $400-$900 more, plus transaction costs (tax, reg fees, loan payoff fees, new loan fees.)

However, the market is not perfect. With flexibility you can take advantage of fluctuations in the market, and the imperfect, emotional/timing decisions of individual buyers and sellers. In that scenario, you put your car on the market, and wait for someone with cash (or cash equivalents) who NEEDS your car RIGHT NOW, and soak 'em for all they're worth . THEN you wait for someone with the car YOU WANT, who NEEDS cash RIGHT NOW, and low-ball them until they cry.
Unfortunately, in this scenario, you have to walk 8 hours (or bus?) to and from work each day between the time you sell your car, and you find the right one. If you had another car (or cash), your options would be greater.

Your scenario (financially) is near worst case (sorry ). You need to find the car you want, and simultaneously find someone who wants to buy your car. This can, of course, be done, but you either have to be very lucky to find the right buyer and seller at the right time, or use market mechanisms (i.e. car brokers) to make it work. You can unload your car quickly, but it will cost you (lower sales price.) Luck is free, market mechanisms cost money ('cause hey, it's how they make their living.)
<finance geek hat off>

My advice as a finance professional - be lucky.

 

I gotta agree. I don't undertsand the "NEVER pay cash for a car" statement. Not that I do that anyway but it seems like a good idea to me unless there is zero interest financing which there never seems to be on any car I want to own.

Plus the concept regarding times when inflation exceeds interest may make some sense but how often is that the case and if or when it is the case how can you see that that would be the case for 3 or 4 or 5 years consecutively. Plus I can see that when you have a loan even in times when inflation exceeds interest well then when you make loan payments you are paying with theoretically less valuable dollars. Unless you are playing the international market I am not sure what good that is. In the dollar amounts we are talking of concerning car purchases $20,00 to $30,000 the inflation vs interest differences when calculated out must be very miniscule.

 

My thoughts EXACTLY!

Here ya go, TSB:

https://www.northamericanmotoring.co...ad.php?t=53891

Solves all your problems.

(Yes, I know it won't just bolt onto her car... )

In the end it boils down to the fact that what we want isn't always the best choice financially. Otherwise, we'd all be driving Hyundias and this site wouldn't exist.

 

you mean this isn't a hyundai website?!?! aww crap!

 

If i could put a supercharger on my car... i'd do it. Keep the body of a Cooper, with the engine of an S.

 

Hyundai - now THAT'S craptastic!

I would have bought one, but it's much easier to spell MINI.

 

i only got it because we're both...mini.

 

one day if you have a late growth spurt you could grow a few inches and ruin your whole persona! then what? you'll be the average height bus?

 

my mom is 4'11.

my grandmother WAS 4'11.

my OTHER grandmother is 4'11.

i don't think i have anything to worry about.

I'm liking that idea of Bump-S for my plates if i got an S though. I've been telling everybody.

 

Maybe it is... We'll wake up one day and find out that BMW didn't buy the MINI... Hyundai did.. and this has all been an elaborate ruse... :impatient

 

damn.. well if hyundai bought them instead I'm gonna have to go buy a few rolls of duct tape to hold it together when things start falling off!

 

All genetic evidence to the contrary, should this happen, then perhaps:

The pink blur FKA TBS

Hmm..

BmpPnkS

Lends itself to a couple of interpretations. Of course, we mean Bump-pink-*** (as in Bumpass, VA) or Bump Pink's S or (nevermind... it's too late on Friday to start being creative) :smile:

 

me and my mini could both be pink blurs

 

Now you are talkin! Make em think they got spanked buy a MC!

I love the BUMP- S plate idea

 

Get an emblem with a subdued S. Or ghost S in a slightly different color paint.

 

so IS there a supercharger out there for the Cooper?

i stayed out of all the performance threads on purpose. Stayed away from almost EVERY aftermarket thread, actually. I've only been to one, maybe two aftermarket mini sites since i bought the MINI.

I spent hours on them before hand, with a page long list of things i wanted to do to my dream mini.

Today, i did it. I searched performance stuff. I went to aftermarket parts sites. Stupid, stupid me. And it was all because i thought the other day "why not put a SC on an MC?" This way i won't have to move onto yet ANOTHER car. I like the look of the MC, why not stick with it? My insurance will stay the same, my payments will stay the same, and i can keep my title of the Short Bus... unless i decided to paint it :P

I had a BIG mod bug on my miata. Big. I didn't want it again, not til i paid this car off. But how can i wait so long? I enjoy the Cooper for what it is now... but part of me wants to just buy something for it now. Even if it's just a CAI. As i said before, i like loud. I spent 25k miles in a loud car. Never got sick of it. I loved it. I want another

I had two riceburners in front of me yesterday when two of my friends were with me. An integra was in front of me, and a Civic was just getting into the left turning lane after they both chased each other through traffic. The integra honked at the civic as the civic got into the turn lane, so i got giddy, pushed in the clutch as i was driving past the civic, revved my MINI. Now, i was wearing pigtails, bunny ears, and driving a little stock cooper with the short bus and napolean dynamite on the back. Their faces were priceless when they saw who revved as they went by. They ended up pulling back out of the turn lane and ducked through traffic to catch up. They revved up at me and took off. I just kept at the speed limit. They slowed down so i could "catch up" then stared at me in the rear view mirror laughing.They signaled for me to follow them when they turned again, but i kept going. I thought, that would have been alot funnier if i had a more agressive sound.

i want to find my little mod bug

 

Oh, that's not good.

I thought i was imagining things when i got back from the Dragon and i checked my checking account by phone and it said i had about 400$ more than i thought i had. So i just budgeted like i really didn't have that 400$ while i checked my loan account, car payment went through this month. Checked my insurance account, that went though. checked my cell phone account, that went through, too. Went through my receipts, and all my purchases were cleared, and i recounted the cash i pulled out for the trip, comparing it to what my statement said i pulled out of the ATM. Even. How i miscalculated having 400$ more is totally beyond me. PLUS, i got paid today.

Oh, temptation is SO hard to resist. Come here, my little CAI.

Ok, i should PROBABLY throw it in savings...

 

no, there isn't a MC supercharger available. The fundimental problem with the supercharger/turbo charger route for the MC, besides the fact that the transmissions aren't happy with that kind of power, is that even if one was available it would cost you several thousand dollars to install a super charger or turbo charger, and for that price delta you could have an S and get the other upgrades that come with it (sport seats standard, sport suspension plus standard, 16" wheels standard, a 6-speed gear box standard, and also get more robust engine internals).

Don't get me wrong, I'm a huge fan of the MC, but the supercharger/turbo charger route on the MC makes no economic sense in my book for the MC.

 

TSB: The best way I know to do that woud be to find a wrecked MCS and then transplant the engineand tranny as one unit. But you will need the engine mounts etc from the MCS.

Could be done but as with anything on the MC, they are gonna tell you it would be easier to throw cash at the dealership on a new MCS.

Do you like the looks of the 2007? Would you rather have a turbo over a Super Charger? If so you have time. If not, you had better get your order in Quickly. 2006 will be a short model year as they have to reconfigure the hole factory for the 2007's. Remember that for 2007 and on the MC and MCS will both be turbocharged.