Last post on Nov 25, 2013 at 4:06 PM
You are in the Prices Paid - Buying & Leasing Experiences
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MINI Cooper, MINI Cooper Countryman, Car Leasing, Coupe, Convertible, Hatchback, SUV
#31 of 798 2006 Cooper S Lease Questions
Jun 20, 2006 (6:33 pm)
My girlfriend is trying to decide between buying or leasing a 2006 MCS. The total purchase price is $25,450. In running these numbers through the MINI.com calculators, she gets about a $450/mo payment with 2500 down, 6%APR, and 60 month term. When she calculates a 36 mos lease with 1k cap reduction she gets a payment of $456 - which I assume is the result of the high purchase price and money factor? Furthermore, the "Mini Select" Balloon option for 36 mos and 2500 down comes to about $385 or so, which makes it the most favorable (and flexible) option.
Are the lease payments really more expensive than buying the car as the site shows right now? Based on the current residuals and money factors, is the balloon option the best way to go for the Mini? The Balloon option only allows you to re-fi or buy after you've finished the term, so it looks like you have to bank on the high residual and market factors like gas prices and demand to come out ok at the end?
Any insight or help you can provide us is greatly appreciated, and thanks for all the help you provide to us confused consumers!
#32 of 798 Re: 2006 Cooper S Lease Questions [jamaica77]
Jun 21, 2006 (5:37 am)
leasing isn't even an option when comparing these choices. If you choose to finance, you'd most likely have equity after 3 years of payments, vs nothing at the end of the 3 year lease. As you suspect, the MF in the Mini lease deal is just not favorable in the least.
I know nothing of their balloon note, but if you have to buy it at the end, it doesn't seem like such a good option. What is the rate on the balloon note? If its a very low rate, then MAYBE it could work in your favor if you are careful.
My personal opinion is to finance it. As long as the residuals stay ridiculously high, as they have been since the car was introduced, you'd at least be building equity pretty quick.
#33 of 798 2006 Cooper S Lease money factor
Jun 21, 2006 (8:36 am)
Picking up my mini today. Have been quoted MF of .00435 for 15K miles on a selling price of $29349. They are charging me a bank fee of $850. The MF seems to relate to an APR of 10.44%!!!!
When I do my own lease calcs (using something I got off the internet) my payment should be about $439 (incl CA sales tax at 8.25%.
the payment they quote (oh sorry...6500 down) is over $500.
I can't figure why the big difference.
And reading the above postings, seems like I am being screwed.
#34 of 798 Re: 2006 Cooper S Lease money factor [minilover]
Jun 21, 2006 (9:07 am)
I thought Mini's MF's were more in the .0038 range (9+%)...I paid an $800 bank fee. But $6500 down resulting in an over $500 payment seems like you are being screwed.
#35 of 798 Leasing pro's vs cons
Jun 21, 2006 (9:13 am)
It's true that you build equity if you finance, and if you lease, you are basically renting. However, if you have certain types of jobs (esp. self employed), there are situations where your lease payment is a tax deductible expense. Check with your accountant.And if you don't plan on keeping your car for a long time, leasing can make sense over financing anyway.
#36 of 798 Re: Leasing pro's vs cons [mattinla]
Jun 21, 2006 (9:36 am)
That's true ... if you are dealing with decent leasing rates. But if leasing will cost you more than financing, and you can't take a deduction, it doesn't make sense. This seems to be the case being discussed here since the leasing rates being offered by Mini are not favorable.
#37 of 798 If you bought the car...
by kyfdx@Edmunds HOST
Jun 21, 2006 (9:40 am)
You could put $6500 down, and probably have a payment around $500/mo. for 60 months... With the re-sale on a MINI, you would probably even build equity (maybe a lot of equity) over the next three years... You would certainly get your $6500 back out of it, after paying off the loan.
Something that you wouldn't get back on the lease..
#38 of 798 2006 Cooper S Lease money factor
Jun 21, 2006 (10:30 am)
Any idea if different dealers charge different money factors?
#39 of 798 Re: 2006 Cooper S Lease money factor [minilover]
Jun 21, 2006 (11:03 am)
well, its not necessarily what the dealer is charging, its the banks they work with. So, yes, if different dealers are using different banks, the rates can be different.
#40 of 798 Re: 2006 Cooper S Lease money factor [minilover]
Jul 13, 2006 (7:38 pm)
If you can take your car payment as a tax deduction leasing may make sense. But for everyone else, as your example shows, it's probably financially nuts, especially for a hot car.
In this case, you shovel in $6500. Then you shovel in another $500 per for X months. At the end, they keep all the money and you give them back the car. Nonono.
My .02 is that someone in this position should examine their options far away from the showroom floor and from any marketing propaganda.
If you must have a Mini, finance the base model trying for a down payment as close to 50% of the total deal as you can manage. Work the phone and Internet to find the best rate. Then, even if you do stretch out the payments, you'll have equity in the car which will protect you if you change your mind a year or two down the road. Plus, you can complete the loan early by paying every third week instead of every fourth week. (Or if you've found a really good rate, you may decide there's no reason to pay early, esp if interest rates go up.) But it will be your choice.
Applicable cliches: 1) A car is your biggest non-appreciating expenditure, so you need to understand where your best interests are, 2) For most buyers, leasing is a sucker's game, 3) You will lose any negotiation unless you are willing to get up and walk away, 4) Even after you have numbers that seem okay, say, "I need 12 hours to think about it."
You know the little voice that says you must have something, and you need to make the sales person think you're a good guy? Well fire it. He's probably cost you a fortune already.