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MINI Cooper Lease Questions

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  • qbrozenqbrozen Posts: 16,895
    in addition to the above, I'm curious as to the residuals on the Mini. Specifically, for me, it would be the MCS coupe.

    With the insane resale value on these, I would expect leases to be extremely low.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    I don't have the numbers, but I think the lease payments will surprise you (not in a good way)..

    High residuals help.... but, factor in market-level money factors and selling prices at MSRP, and the lease payments aren't anything to write home about..

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • tommyg12tommyg12 Posts: 158
    my thoughts were the same about low payments with high residuals, but seems that's not the case. From a few days of research and dealer quotes, 4 year lease payments with close to $25k msrps, seem to average $415 - $450.

    My wife's Solara Convertible lease payments with a $30k selling price, 4 year 0 down, is only $398. I was really hoping that the Mini would be closer to the low-mid $300s.
  • qbrozenqbrozen Posts: 16,895
    interesting.

    well, i guess since its a hot car, the money factor is higher than most cars (??)

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    BMW is not currently providing any sort of support on Mini leases. As a result, if one was to lease one through its captive finance company right now, it would have to use the standard money factor. I believe that BMW FS' standard factor varies a little bit depending upon what area of the country one is in, but it is probably around .00300 or a little over in most areas right now.

    Car_man
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  • drsezdrsez Posts: 1
    I just signed a lease for 36 mo. I am paying $525/mo including tax with just paying $1,815 at signing which includes 1st month and doc fees,etc. MSRP is $31,450. Did I get a good deal?
  • cvpacguycvpacguy Posts: 14
    Hey Car_Man, any idea what the current MF and residual value would be on an '06 Mini Cooper for 24mos and 30mos with 15k per year in Southern California? Thanks!
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    Hi cvpacguy. BMW is not currently providing any sort of lease support on the Mini Cooper. As a result, if you were to lease one through its captive finance company right now, you would have to use its standard lease money factor. This number varies by region, but it should be around .00280 or so. The residual value for a 24 month lease of a base 2006 Cooper with 15,000 miles per year is currently 72%. The residual for an otherwise identical 30 month lease should be 67%.

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  • mattinlamattinla Posts: 7
    Just leased a 2003 Mini S - all options but the Nav. Negotiated price was $18000. I looked at the leasing work sheet, and it looks like net cap cost after our cash down and trade was $16,600.

    I remember the money factor being .00385. Base lease was $235, with tax $248 for 48 mos/10K miles (I really don't drive more than that, so it's OK). I've plugged into the leasing calculators, and it seems like it was am OK deal.. and the money factor seems OK for a used car... any comments?

    Thanks
  • jamaica77jamaica77 Posts: 4
    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!
  • qbrozenqbrozen Posts: 16,895
    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.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • miniloverminilover Posts: 2
    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.
  • mattinlamattinla Posts: 7
    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.
  • mattinlamattinla Posts: 7
    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.
  • qbrozenqbrozen Posts: 16,895
    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.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,881
    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..

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • miniloverminilover Posts: 2
    Any idea if different dealers charge different money factors?
  • qbrozenqbrozen Posts: 16,895
    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.

    '13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '08 Town&Country

  • saabgirlsaabgirl Posts: 184
    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.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,518
    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.

    Car_man
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