What is the current residuals and money factors out there?
Specifically the S coupe, but would like to hear it all.
My lease is up in September, and i'm STRONGLY considering buying at lease end.
I was also told by an acquaintance that they were quoted low 200s for a 2yr lease on a loaded S convertible. with what... $10,000 down???

 

Yeah the MINI lease isn't really any good, which surprised me since these cars have much better resale. Anyway I was planning on leasing at first until I saw that my monthly payments would be less if I just went ahead and bought it. This was with 3k down on the car specced in my sig.
On a different note, I know MINI just had lease deals on the Clubmans but I think thy're over now.

 

Interesting that the leases aren't very good.
From what i understand, BMW as a company is hurting.

 

What are some good leasing companies?

 

If you are strongly considering buying any car off-lease, then it is likely to be financially smarter to just finance from the start. You'll have a lower payment for the first few years on a lease, but after you buy/finance it at lease end, you're likely to pay more in the long run.

 

Residual for a quote I just got was 65%
Money factor was .00345...8.28%

The residual is pretty good, but the rate is lackluster since it looks like everyone else around here is around 6-6.5% for new car financing.

 

BMW may be hurting, but MINI is running their factory at almost 100% capacity, and all their cars are selling at or near MSRP. Don't expect any great lease deals anytime soon, at least from MINI.

 

Hi everyone. I just wanted to introduce myself to every in the forums and share what I've learned about the lease process. MINI is a really great car to lease considering the very high residual value and low money rates. I was in the market for a 24month 10k mile lease and MINI was the perfect choice for my needs.

I put in my order last week for my MINI and I couldn't be more excited. Ever since I drove one through the zipcar service (I live in Brooklyn), I fell in love with the car. I'm a 6'9" former professional athlete and the car fit me like a glove, although good luck to anyone that wants to sit behind me.

Basically, my brother is the master of the BMW lease program having leased 3 in a row, and learning more each time. He taught me everything I needed to know about leases and how to get the best deal. I never set foot in a dealership which was his first piece of advice. I did my research and knew exactly what I wanted and how much I wanted to pay for it. I tweaked my spreadsheet and had it down to the penny. Patience is the key to this process, and it took me many emails and phone calls until I found a dealer that was truly willing to "work" with me.

I ended up going with Patrick at Westchester BMW/MINI in White Plains, who is extremely knowledgable about the product and has a great attitude. He understood that I was a serious customer right off the bat and worked with me to get very close to my ideal structure that I had laid out on my spreadhseet.

Knowledge is power, so do your research. You can get up to date Money factors and residuals from this site:

http://www.leasecompare.com/auto_lea...hp?f=18&t=3046

Also, like I said, be patient. In the end, you will get what you want.

Thanks to everyone who posts in these forums. You were a great help in my decision making process. Feel free to PM me if you have any questions.

Cheers

 

From the above posted link....

Mini Financial Services Lease Programs – April 2008

Listed below are the current manufacturer (captive) lease programs.

Special bank lease programs for these models are available through independent leasing source LeaseCompare.com. Click on the vehicle name for more information and to see payments details.

2008 Mini Cooper Coupe
24 Month – Residual 75% of MSRP – .00219 Base Rate
36 Month – Residual 66% of MSRP – .00219 Base Rate
48 Month – Residual 57% of MSRP – .00219 Base Rate

2008 Mini Cooper Coupe S
24 Month – Residual 72% of MSRP – .00219 Base Rate
36 Month – Residual 63% of MSRP – .00219 Base Rate
48 Month – Residual 54% of MSRP – .00219 Base Rate

2008 Mini Cooper Coupe Clubman
24 Month – Residual 72% of MSRP – .00219 Base Rate
36 Month – Residual 64% of MSRP – .00219 Base Rate
48 Month – Residual 54% of MSRP – .00219 Base Rate

2008 Mini Cooper Coupe Clubman S
24 Month – Residual 71% of MSRP – .00219 Base Rate
36 Month – Residual 63% of MSRP – .00219 Base Rate
48 Month – Residual 52% of MSRP – .00219 Base Rate

2008 Mini Cooper Convertible
24 Month – Residual 67% of MSRP – .00219 Base Rate
36 Month – Residual 59% of MSRP – .00219 Base Rate
48 Month – Residual 50% of MSRP – .00219 Base Rate

2008 Mini Cooper Convertible S
24 Month – Residual 67% of MSRP – .00219 Base Rate
36 Month – Residual 59% of MSRP – .00219 Base Rate
48 Month – Residual 50% of MSRP – .00219 Base Rate

Residuals posted are for 15K miles/year. Add 2% to Residual for 12k mi/yr and 3% for 10k mi/yr on all terms

Compare Lease Payments for Used Mini Models HERE

Use the following formula to calculate a lease payment:

(Cap Cost – Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Money Factor = Interest
Depreciation + Interest = Base Monthly Payment

NOTE: These lease programs are provided by dealer partners of LeaseCompare.com and are for reference only. Rates may vary by region. Your dealer has the option of offering you a higher rate. To make sure you are getting the best lease, compare these rates through an independent leasing source such as LeaseCompare.com.

Here is a great online publication about leasing: Auto Lease Insider.

 

I got a lease last march (2007). the cost of the car was $24650. 3 years and 45k miles. Nothing down for $350 a month.

 

Is that after TT&L?

 

All i paid when i picked up the car was TT&L, first month, and wheel/tire insurance. It was last year and my memory is a bit hazy, i can check when i get home.

 

The only time that leasing makes economic sense is if you can write most of the lease off as a business expense. Most people cannot. The only reason it seems affordable is that the monthly payments are less than financing an outright purchase. Over the life of the car , the additional cost of a lease can be as much as thousands of dollars. The imputed interest on a lease is typically more than double that of straight financing. At the end of 3 years, you've paid for half a car and are left with nothing.

 

I'm trying to figure out your math here. The base money factor for Apr08 on a MINI is 0.00219. So with top tier credit, the financing charge you are paying is (0.00219 x 2400) = 5.256%

I haven't done much research on financing cars, but what kind of interest rate do people with top tier credit get. I chose not to put money down, so simply put a lease is depreciation + financing costs (5.256%) + taxes per month.

MINI's have a very high residual value, 24 months and 10k miles is 78%. So basically I can buy the car for that value at the end of the lease or just give it back and get a new one. I don't have to go through the trouble of trying to sell a car in the market or getting ripped off on a trade-in.

I'd like to know how this can cost someone thousands of dollars more than financing a car? Even if you own a car, it's still going to depreciate.

For me, I think leasing a car was the best option but I guess it really depends on your situation. It's more a weekend car for me and my girlfriend, not business related.

 

Leasing may not be a bad option.

Take the capital saved and invest it. Hope that you make more than the 5%ish interest rate you are paying on the car. One plus side is that you don't have to shell out tax money up-front (yes, you're paying it over the lease as you use it).

You get a fixed buyout value at the end of the lease. If your car is worth more - buy it and then sell privately......

Does BMW FS do the multiple security deposit thing on Mini?

Cheers,

John.

 

bdr, i agree w/ you... BUT, i've leased 2 bmw's in a row coming into the mini.
After being in each of those for 1 year into a 3yr lease, i was already looking for my next car. Yea, most car nuts will do that. BUT, with 5 months coming due on my 2005 slightly modded MCS, I can't think of another car I'd want. I don't even want a new MCS. I LOVE MY mini!!!
I'm currently paying 380/month. If I have to pay $430/month for the next 3-4yrs, then fine. I'd consider a new 335i sedan, but l cant see spending double what i am now, for a car that may not excite me as much as my mini.

I don't know if BMW FS does the multiple security thing... i'm not sure every state does it.

I usually flip my cars... always like a new one, and being under warranty.
I think i'll keep my mini, and in 2-3yrs twin charge it and keep it as my 3rd car, next to a 5series for more family use.

BTW soonersdude, excellent info.
Mini's continue to rule on the residual side, must still have great resale value.
And a money factor of 219 is great... in sept 2005 it was about 280.

 

Just heard from my dealer - BMWFS does multiple security deposits in NJ!

John.

 

I'd be pleased to work the exact math for you if you give me the exact price for the car, the down payment amount (if required), the monthly lease cost, months of lease, and the guaranteed price that you can buy the car for at the end of the lease period the end of the lease period.

Here is an example using the lease numbers cited above:

Assumptions based on history:

cost of car (actual): 24,650
current (residual) private sale value (kbb) of a 3 year old car (2005) with 45k miles: $18,150 (Good condition only, not excellent)

If $24650k is financed at 6% (5% available at the local MINI dealer), the monthly cost of interest and depreciation is: $270 per month (use the PMT function in Excel).

That's $80 per month cheaper than the lease rate cited above for 36 months, for a total savings of $2880 over that 3 years.

The confusion that the leasing companies rely on is that the bank payments for that loan actually will come to $736 per month. But keep in mind that you will own a car outright at the end of that time worth $18k with no further payments to make. You can drop that monthly payment to $463 by extending the loan to 5 years.

 

Leasing can be a good deal if you find a dealer who's willing to work with you, and there are leasing incentives, such as manufacturer discounts or lower than market finance rates. However, one basic cost issue with leasing is that you're paying interest on the payments for the portion of the car you're leasing, PLUS the interest on the full value of the car on behelf of the lessor. So, the interest on a $25,000 car with a 50% residual at a 5% rate is not 5% of $12,500, or 5% of $25,000, but 5% of $25,000 + $12,500. That's why the lease interest charges tend to be expensive unless there's a deal on the rate.
That said, there's always folks out there who can, and do, negotiate decent lease rates. For most buyers, a purchase is cheaper in the long run.

 

Like you say, purchasing may be the best deal in the "long run", but my girlfriend and I wanted to get a small sporty weekend car for 2 years and see how it went. I wouldn't use the deal above to illustrate your point. Here are my details:

Price of Car New: $20,838
2yr Purchase Price: $16,614

24months, 10k miles, no money down

Monthly payment: $290 (includes tax, $267 without)

You seem to have good knowledge of the financing process, if I could have gotten a better deal for my situation, I'd love to hear your opinion. Thanks.

 

Any payment under $300/month, with no upfront costs, seems like a good deal to me!

 

I live in IL so I took the "owners choice" option that gives me the same terms as a lease, but I have full ownership of the car. So after 3 years I can walk away from the car (more than likely) and get a new mini, or sell it/trade it/buy it and I don't have the hassle as being a "lessee."

Here are my details:
Residual for a quote I just got was 68%
Money factor was 7.5%
Mini cost $25,000 ($27,000 with tax/title/doc)
$1000 down
payments of $400 a month
16,799 buyout after 36 months (36k miles for 3 yrs).

I recommend doing the owners choice instead of a lease if it is available to you in your state. (also, with it if you decide to buy it out you don't get taxed on your buy out like you would in a lease).

 

It all really comes down to the effective interest rate. Lease rates are typically higher than auto finance rates. In your case, the effective rate calculates out to 7.5% (the same as what poidog found). However, if you aren't ready for a commitment, the 2.5% differential you are paying for the flexibility to bail out in 2 years may be well worth it.

I typically forge a spiritual bond with my vehicles (I hold on to cars an average of 15 years), so the standard loan would make more sense for someone like me.

 

For those unfamiliar with leasing, hop across to bimmerfest for all the low down in the ask a dealer forum.

BMW leases are not a bad deal as in my opinion, BMW artificially inflates the residual value. If you can couple this with a good rate (see MSDs below) and trunk money (not likely on the Mini) you can get some really good BMWFS leases. My theory is that they want the cars back for CPO.....

If your dealer does the Multiple Security Deposits, this helps significantly lower the rate. For those that don't know, you can put up to 7 security deposits down at the start of the lease to reduce the money factor by 0.00007 for each security deposit. The good thing about security deposits is that if the car is totalled then that money is returned rather than cap cost reductions which you'll lose.

So, if you do MSDs then your rate could be: 0.00219-0.00049=0.00170 (or about 4%). These numbers are best buy rate and using Apr 2008 numbers.

On the April 2008 rates, I'm looking at about $380 for 24m or $370 for 36m on a 10k/year lease of a $25.5k Cooper S (inc. tax). Initial payment would be about $3750 (of which $2800 is security deposits and first month is in there too along with doc fees etc).

Hope this helps.

John.

 

This argument only holds true if people generally keep their cars for longer than 3-4 years. For people like myself, who are in and out of cars ever 2 years, leasing makes perfect sense.

For individuals without business write-offs, I explain leasing as a lifestyle choice. You will make smaller car payments than financing, and you will make those payments for the rest of your life (or until you want to change your lifestyle). In return, you will be able to afford a nicer car than if you were financing, and you will get a new car every few years.

Yes, leasing is without a doubt more expensive in the long run, but I'm trying to explain that you actually get some added value for that extra expense.