I am planning on buying my MINI in novemeber...my config puts it arund $21,000....i plan on putting $8000+ down on the car....my only debate is if I should just finance with the dealer or just do it through my bank (bank of america) and go to the dealer with full cash.

Any suggestions?

 

I financed through the mini select program, so I can have a low payment and then sell when the balloon payment comes up, because then it will be time for a new MINI!!

 

I got pre-approved for a loan at a CU with a very good rate (much better than BofA), and when I got to the dealer, I told them I'd finance thru MINI if they could beat the rate, and they did. Of course, the monthly payment was only a few bucks lower, and the loan was really brokered thru Capital One, but letting the dealer do the loan was simpler and faster.

gl

 

What APR is Mini offering? I wasn't planning on financing, but if they come up with an offer I can't refuse (around 3% or less APR) then it would be worth considering. What are the lowest financing rates people have obtained?

 

I have a feeling you wouldnt find that rate anywhere... banks have a better deal and they are still anywhere from 5 to 7....dealer you are definatly looking at 6.5-7

Im definatly going to consider the mini select plan...but is it worth puting $8000 down with that or just wait for the balloon payment?

 

I did the mini select plan as well. I put down $7500 on a $27,450 car. Payments for 2 years were $218 with big a$$ balloon payment at the end. At that time, I will either pay it off, or get a new one...

 

I went with the Credit Union. Mini could not beat my CU rate of 5.44%.

 

Capital 1 via Costco

2 weeks ago obtained 5.9%/ 60 months

Fed lowered rates yesterday...should be able to find something close to 5.5% soon

The above assumes credit rating of 750+

 

How good are the interest rates for the Mini Select Plan? Do you know what the effective APR of your loan will be, assuming you pay it off in full before the ballon payment?

 

Go into your delivery with check in hand from searching on your own. Mini can usually beat it.

Funny thing is that we found our best rate through Capital One. The dealership was able to offer us a better rate through SunTrust. We have 2 checking accounts and 2 savings accounts with them, personal and business. They couldn't give us a better rate than Capital One when we were searching, yet the dealership did it for us. Go figure.

 

I seem to recall something around 7% is what I was told. I have not looked at contract since the day I signed it.

 

Have a credit score of about 700, I was told my APR range would probably be between 6.9-8.9%, which is not really too bad. I'm sure I could find a better rate if I went thru a credit union or did some digging.

I might consider doing the mini select program. I'm still exploring options since I have a few weeks before delivery.

 

Never, never, ever finance from the dealer unless you want to pay 3% higher interest rate. That's what the dealer adds on to the rate their bank gives them when you finance thru the dealer.

Go to a credit union. That's their life, their reason for existing, their passion...

 

go through a credit union, with a 700 you can easily get around 5.5-6.0, my first car i financed through navy federal cu and with my mini im with USAA.

 

USAA was 5.99% Navy Federal was 5% flat. As an old retired Navy guy I went with Navy Federal. Saves about ten bucks a month.

 

I just found out from my MA that the Mini Select Plan actually has a higher interest rate than traditional financing. Basically you're making interest only payments for the initial term until the principal is due in a ballon payment. It's not really a good deal at all.

 

I've tried the 'get the loan check before hand and pretend you're paying cash' and the dealers really don't seem to give a carp. I think most, if not all, of them would actually prefer you fianced through them because then they're making money two ways (profit from the sale + loan interest). So it's not really necessary to actually get the loan money first.

Your best bet? Get pre approved at your bank (or a local credit union which seem to have much better loan rates (we're talking up to 1% lower even than a bank you've had an account with for years)) and then see if the dealer will beat it.

 

Ouch!

 

I always walk into a car dealership with some pre-arranged financing. Check with your credit union / bank. Get pre-approved for an amound and interest rate. When you make the deal, see if Mini can beat the financing you already have secured. That keeps you from being at the mercy of the dealer.

 

Edmunds.com currently lists MINI as offering 6.65% financing up to 66 months.

 

this is not quite true...

your interest rate on a MINI select is about 1% higher, this is the price you pay for the convenience of lower payments.

The balloon value is set using a similar percentage as what MINI uses for their lease residuals (i.e. 65% after 3 years for a Cooper S), so you're paying 35% of the principal plus interest over the 3 year select.

 

For me it was either Mini Select or a Lease. Yeah Mini Select isn't a fix all, but for me putting down $7900 on a lease and not being able to do anything to my car...or having to take it all off before I return it and having limited miles doesn't make any sense. Mini Select is a very small payment in my case $191, I can do what I want to the car without limited miles and sell it at the end...or keep it. I like to do stuff to my car and drive it! I usually finance, but we have an Audi A4 Avant that we are paying $400 a month on. It all works out in the end, and we all can get what we want. So look at what you want to accomplish and figure out how to get that.

 

when i bought mine my dealership said they would match any interest rate that my bank would give. so i financed it at the dealership one less place to go and by the way they financed it through bank of america

 

I went to the dealer prepared to go with my credit union if they couldn't beat the rate. Capital One also offers a "blank check" that you can bring with you, and either use or not use.

I told Mini I got 5.74% from my CU and they said right off the bat they most likely wouldn't be able to beat it -- they offered 7.75%.

 

rates change all the time, but right now with tier 1 credit (750+) and amount financed <100% MSRP, a dealer should be able to get under 6% through the big banks on a regular retail loan, which is close to many credit union rates.