Hi all,

I don't plan on making any mods, driving more than 12,000 miles a year, or getting crazy in the car. I did the lease calculator on the website, and the monthly payment was so low! So I am starting to think maybe this could be a good option for me. Is there a way to buy the car minus what you paid in at the end of a lease? What is everyone's opinions on lease v. buy? ANY info would be extremely helpful, thanks!!!

 

There is a way to buy the car at the end of the lease, but usually if you calculate the total (the buyout which they tell you when you sign the lease) plus all the monthly payments you have made, it works out to be more then the car was worth new. When you lease a car you are basically paying for it's depreciation.
I did lease my first MINI, but wound up turning the car in early (I wanted a 'vert and the mileage restrictions on the lease didn't work well with how much I drove).

 

Im leasing my car...Sort of...
My Bank here in Toronto has an option called the "Royal Buy-back Car loan". Basicly i went into the dealership, found the car i liked (car had to be no more than 3 or 4 years old i believe), went to the bank, they approved me for the price of that car, bank cut me a cheque, brought the cheque to the dealership and bought the car "cash".
So now im just dealing with the bank and not BMW financial. I saved a ton of cash up front (no upfront fee's), and i have the option to walk out of the 'lease' whenever i want without penalties.
Here is the link. Not sure what your banks have in the US.
http://www.rbcroyalbank.com/RBC:RCL3..._car_loan.html

 

I don't see where you have the option to walk out anytime w/o penalties, just at the end of the agreed time frame. Oh, what other "upfront fees" would you have to pay otherwise? Taxes are a given, same as here in the US.

 

Fare warning.... once you start driving your Mini you may find that the miles rack up rather fast. I've had my JCW for 4 month now and have 6,000 miles on it. If you really want to lease, I would suggest getting an option for extra mileage. Lastly, and this is a personal choice, I've never wanted to lease: if you own the thing you have more power over it. Granted, if you get a loan the bank mostly owns it, but at least there's an end in sight and no BIG buy-out payment at the end. If you're going to turn the car over in a couple of years maybe leasing is the way to go. IMHO

 

The mini lease on MINI.COM is low because it does not include dealer cost for extras (ipod hook up, etc) and fees.
You must include the above plus last month lease payment, deposit, aquisition fees, taxes, DMV, etc.

When you figure the lease at mini.com, add something like $2000 to the price. Depending on which state the extra costs vary.

Needless to say, I went with the Mini lease. Couldn't find anything to better including my Credit Union.
I also have uncle sam helping me pay for the lease because I have a business too.

 

I'm leasing because I have to, very long story with regards to visa's and what not, but I don't regret it. It's costing me money, as Meg noted, but I like the idea that I can turn the car in a 18 months and get an 08 .

If leasing makes sense then go for it, otherwise finance the car for roughly the same payments and live with a longer payment period.

 

The only really "negative" thing I heard was that you have to purchase a premium insurance policy. This is something that I heard...I have never leased before, but just an idea to check on the insurance

PS: do whatever you can do to get one though! these cars are a blast!!!

 

I tend to only lease commuter cars since I would rather drive something new, not have to worry about it getting scratches and dings, and won't have to pay for the whole car. I just don't like to get attached to cars I would use on a daily bases.

 

Yeah i was skeptical too at first...but my bank offers it

"renting" cars is the best way to go. (unless you want to do mods). Cars depreciate so much that why not get the best out of a new vehicle and trade it in a couple years for something newer

 

^^ you can mod it as long as you keep your stock parts and just put it back together at the end.

 

Whether you finance or lease the car you are required to have full or 'premium' coverage. Remember either way the bank still owns the car........if you pay cash then you can have whatever coverage you want.

 

I've checked into leasing several times. Buying looked like a better deal every time.

Of course, since I plan on keeping the MINI forever, paying for it and still not owning it just didn't seem like a good deal.

 

Buying is much cheaper in the long run vs leasing. I have only leased a car once in my life (A 1997 Acura 2.5TL) and while the experience was more positive than most, typically you'll get nailed at the end of the contract with charges such as disposition fees, excess mileage, wear and tear, etc.

Leasing may be cheaper at the beginning but it tends to be expensive at the end. You have nothing to show for at the end of the lease and you don't own the vehicle. Leasing is best described as a long term car rental with the exception that you are responsible to maintain and service the car on your own dime.

People have this false idea than when you lease you can basically beat the crap out of the car. Au contraire! When you lease you have to be even more careful maintaing your car, watch where you park it, tend to dings and scratches and such. If you return a car that looks like has been through a war zone, the lease company/bank will make you pay dearly for the damages.

If you are not the **** retentive type, don't lease.

I much prefer owning my vehicles. There is something to be said about pride of ownership.

Out of curiosity, I always inquired lease money factors (Interest) and rates with my MINI dealer and in most instances leasing came out a lot more expensive than buying the car outright.

Unless you are a business owner and you can deduct the use of the vehicle on your taxes, leasing, in my view, is not the most favorable option for most people out there.

Besides, the mINI has such high resale values, why do you want to tie up yourself to a never ending thread mill of car payments (Leasing)?

Leasing also forces you to purchase the highest coverage limits possible because the car is not legally registered in your name's but the bank. Obviously the bank wants to protect itself in case something happens.

When you buy or finance a vehicle, the bank holds a lien on the title, but the car is leaglly registred in your name, hence you are not required to carry the highest coverage limits in your insurance premium. Yet another reason why buying/financing is still a cheaper deal than leasing.

Think of it this way..... Financing more expensive upfront (Downpayment, taxes fees) but cheaper during the time of the loan and at the end you own an asset with some value. When you finish paying the car, you get your title of ownership and no one will care how many dents or scratches the car has or how many miles it has piled up or how many accessories you have added.

Leasing is cheaper upfront (Inceptions + downpayment + 1st month payment), you can spread the taxes over the life of the lease, you may have a lower monthly payment, but the real costs do show up at the end with fees, hidden fees, wear and tear and other charges that can add up to a lot of dough. You don't own the vehicle and have to either lease another new car (Never ending cycle of payments) or buy/finance and start from scratch again.

The choice is clearly yours!

 

Your credit rating also determines whether the lease money factor rates will be favorable or not to you. Aside from wear and tear, excess mileage is a killer on a lease. Since life is unpredictable, today you find yourself driving no more than 12K miles a year, but what would happen if you change jobs or even move somewhere else and all of a sudden your mileage doubles??

Leasing impose stiff penalties should you decide to change your mind after signing the paper work. Leasing does not make it any easier to get out of a car or a contract. Actually it is easier to sell or get rid of a financed car than it is to dump a leased one.

If the low monthly payments seems to good to pass up on a lease, think about all the other variables long and hard before jumping into the leasing bandwagon.

And on a last tought, if you have to lease a car to be able to drive it, probably you are buying too much car for your budget and realistically, you can't afford it either if you were to buy it out right.

I am not saying that every individual that leases can't afford the vehicle if they were to purchase it, but the vast majority of people are lured into leasing because otherwise the item would be well beyond their financial reach.

Be careful with leasing. Become well acquinted with all the nuts and bolts and understand what you are getting yourself into before signing papers. The low monthly payments are just a very, very small part of the picture.

 

I couldn't agree with C4 more! Leasing makes sense if you're only planning to keep the car a very short time or you have a business that will allow you to write off the lease payments.

From my perspective it's nice to know that I will ultimately own the vehicle outright. Of course I tend to payoff cars early and then enjoy being car payment free for a couple of years before I purchase a new vehicle.

 

Lots of good advice in this thread; C4 brings up many good points.

The only thing I would add is this:

The original poster mentioned buying the car at the end of the lease.

Leasing in my opinion is good only for someone that does not want to own the vehicle for more than the term of the lease. If you're going to buy it at the end, you'll save money in the long run by financing (unless by some strange chance the manufacturer was throwing a lot of incentives onto a lease and NOT doing the same for a finance, which is rare but has happened). You have to pay a acquisition fee right up front -similar to points on a mortgage, so you're starting off several hundred dollars in the hole.

Where leasing can work is for someone who wants a new car every two or three years, and doesn't mind paying a little bit of a premium for that. You have a relatively low fixed monthly payment, and when the lease is up you don't have to worry about going through the hassles of selling on your own, or getting hammered by a trade in. And if for some reason values remain really high, you still have the option to buy it out and sell on your own nd pocket the profit.