Last post on Nov 25, 2013 at 4:06 PM
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MINI Cooper, MINI Cooper Countryman, Car Leasing, Coupe, Convertible, Hatchback, SUV
#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.
#41 of 798 Re: 2006 Cooper S Lease money factor [minilover]
Jul 16, 2006 (9:54 am)
Wow, minilover, the money factor that you were quoted is really bad. Even though BMW is not providing any sort of lease support on Minis right now, its standard lease money factors are a lot better than that. BMW Financial Services' current buy rate lease money factor for consumers who lease a Mini and qualify for its top credit tier is actually around .00385 and for consumers who qualify for the next tier down it's .00310 - .00315 or so. BMW FS' exact standard money factors vary depending upon what part of the country one is in. Your money factor for this car should be much better than this unless your credit is in really rough shape.
Furthermore, $6,500 is way too much money to put down when leasing. If your leased vehicle is totaled in an accident or stolen and never recovered that $6,500 will just disappear. If you have that much money to put down on your lease, you would be much better off using it to make additional security deposits. Each additional deposit that you make, up to seven additional, will reduce your car's money factor by .00007.
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#42 of 798 Re: 2006 Cooper S Lease money factor [mattinla]
Jul 16, 2006 (10:42 am)
Hi mattinla. See my previous post for info on Mini's money factors. As far as their acquisition fees go, BMW FS charges an acquisition fee of $625 in most states. If you are asked to pay more than this, there is a good chance that the dealer you are working with is trying to mark your car's factor up to add additional back-end profit to your deal.
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