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19,262I 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.

'14 CTS Vsport; '98 Volvo S70 base; '14 Town&Country Limited; '09 LR2 HSE. 40-car history and counting!

2When 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.

7719,262'14 CTS Vsport; '98 Volvo S70 base; '14 Town&Country Limited; '09 LR2 HSE. 40-car history and counting!

45,853Something that you wouldn't get back on the lease..

regards,

kyfdx

MODERATORPrices Paid, Lease Questions, SUVs

219,262'14 CTS Vsport; '98 Volvo S70 base; '14 Town&Country Limited; '09 LR2 HSE. 40-car history and counting!

184In 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

yourchoice.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.

38,515Furthermore, $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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519,262You also want to find out what of that $1500 down is actually going towards cap cost reduction.

5MSRP: $21,700

L.E.V. %: 68%

Lease-End Value: $14,756

Lease term: 36 mos

Documentary fee: $35.00

Initial Cap. Cost: $22,150

Cash Cap. Reduction: $527.29

Total Cap Reduction: $527.29

Total Add Cap Cost: $825

Adjusted Cap. Cost: $22,447.71

Lease factor: .00320

Base Monthly Rental: $332.70

Monthly Tax: 9.1%: $30.28

Total Monthly Payment: $362.98

Security Deposit: $400

License Fee: $124.25

Cap Reduc. Tax: 9.1%: $47.98

Amount Due at Start: $1,500

Customer Cash Down: $1,500

Total Sales Tax: $1,138.06

Total Working Cash: $1,500

VSC Tax Rt/Amt: 8.8%

19,262I'm not clear on what is going on here. I would think your initial cap cost is the selling price, but why is it $450 over the MSRP? Are they charging you over MSRP? Or is that MSRP excluding destination? Destination, however, is $550. Hmmmm... So are they giving you $100 off the car, then adding destination? Or are they overcharging you $450 for the car? This is the question I am unable to ascertain by looking at this list of numbers. What did the sticker on the car say? The sticker should have included destination.

19,262something else i just noticed, though. What is this additional 8.8% VSC tax thing at the bottom of your list??

19,262Your total fees listed here are:

$35 doc fee

$400 security deposit

$124.25 license fee

*********

$559.25 total

What about an acquisition fee?? I don't see that anywhere. Let's say, out of good faith, we estimate that the $972 they made disappear out of your down payment is going towards all of these fees (including the elusive acquisition fee).

If that's even the case, then why the heck is the cap cost $1275 above the MSRP?? I would have thought that was all the fees, but apparently its not.

I'm not an expert by any means, and maybe there is an explanation for all of this, but what I'm seeing so far does not look right at all.

45,853The $825 is the acquisition fee.. This is marked up $200 over the base fee of $625.

If you add up all the other fees, 1st payment and security deposit, they come to about $970.. So, $1500 upfront minus the $970 is the $530 cap cost reduction.. Subtract this from the $22,150 selling price, then add back in the $825 acquisition fee, and the numbers match..

I even get the same payment, down to the penny..

Now.. I don't know the base money factor (Car_man would)... but, I'd bet that it is marked up, just like the acquisition fee...

To recap...

$450 over MSRP for the selling price..

$200 markup on the acq.fee

Maybe a marked up money factor..

Actually, this is typical for a MINI lease..

If it were me (and it isn't), I'd rather buy the car.. Even at that selling price, once you add 9% tax and the fees, the payment would be around $440/mo. for 60 months, if you put down the same $1500.. and got a 6% APR on the loan.

Just my $0.02

kyfdx

MODERATORPrices Paid, Lease Questions, SUVs

19,262where do you come up with $970 fees, though? I'm missing $50 somewhere.

Your total fees listed here are:

$35 doc fee

$400 security deposit

$124.25 license fee

*********

$559.25 total

$362.98 first month

*********

$922.23

45,853Tax on the Cap Cost reduction... Somewhere around $50..

MODERATORPrices Paid, Lease Questions, SUVs

19,262Of course ... after all this ... it doesn't seem like our poster has come back to respond. I hate when that happens.

519,2625I SO excited to have the car finally (had to wait 5 months for it)!! She's beautiful and zippy!

19,262So did they still mark up the MSRP by $400 on the purchase? At least you didn't have to pay the acquisition fee this way.

Enjoy.

45,853If that turns out to be the case, you might end up even farther ahead..

Congrats on the new car!!

MODERATORPrices Paid, Lease Questions, SUVs

5Thanks again for all your guidance.

116Like many people on these boards I depend on your assistance when purchasing/leasing cars and in this case I would like to know the October 2006 money factors and residuals for both the Mini Cooper and the Mini Cooper S for 36 months and 12K miles.

Thank you for all of the information and assistance that you provide.