MINI Cooper MINI Select

[MontegoMack]

MINI Cooper had a purchase program called MINI Select. Low initial payments and then a balloon payment of the value of the car (in my case the MINI Countryman) at the end of the term. No mileage restrictions (despite the lease like payments). 

Does anyone have any experience with this program?

What are the down sides that aren't so clear?

Who does MINI (may be BMW financing) pull?

[marty56]

I have never used a program like that but if you want to keep the car beyond the initial term of the loan, I might be tempted to do that.  Based on your credit at the end of the loan and value of the car, you could get a good refi rate for it.  If your iincome allows, you could save money in a CD to be able to put towards the balloon paymnt at the end.

My next car might be a BMW and if they had a program like that, I would consider doing that or a lease.

[Anonymous]

Actually in Europe that is the prefered form of Financing. Lets you get into one of those E class Mercedes or BMWs on the cheap and encourages trade ins after 3 or so years.

[MontegoMack]

Looks like they only offer the program through the end of the month. 

I hate the pressure of making such a big purchase with someone else's timeline.

The program itself sounds awesome!

[Anonymous]

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@MontegoMack wrote:

Looks like they only offer the program through the end of the month. 

I hate the pressure of making such a big purchase with someone else's timeline.

The program itself sounds awesome!

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Then waiting until you're better positioned might make more sense.

I haven't shopped for a car in a while but think some of those awesome deals are really only for people with better credit ratings. I think people see 0% or "We're gonna give you candy!" on commercials, test drive the car, and then convince themselves the instant gratification is more important than interest rate.

In general, I'd argue dealerships have a lot more flexibility when people have a down payment saved, great credit, and a willingness to walk away.

[Anonymous]

Does anyone know what kind of score they are looking for on this program?  Currently at 658 (TUC).

Also, I have an open car loan that I am going to pay off after a private party sale.  I owe about $2K on it.  Should I wait to go shopping til that payoff updates on my report, and that amount comes off my credit useage?

I have heavy useage on four accounts (85%), and a tax lein, which are holding my score down, but I have no late payments in the past eight years

Trying to figure out if leasing is even a possibility for me.  

Anyone?

Thanks!

[Anonymous]

Whenever I hear "balloon payment", I walk away.

Any type of loan with the combination of words "variable", "rate", "balloon", and "payments" within the same sentence... tends to give my wallet a stroke.

[Anonymous]

I I am not mistaken, the cool thing about the Mini program is that the balloon payment is at your option.  You can drive the car for the period of time prior to the balloon, and at the time the balloon is due, you can choose to walk away, or move in to somethig newer.  Or, you can choose to pay the balloon.

Going to the dealership in a while here to check it out, but I think after April 30, it is only available in Illinois and Texas (according to the Mini website).

More to come.

[boomhower]

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@Anonymous wrote:

I I am not mistaken, the cool thing about the Mini program is that the balloon payment is at your option.  You can drive the car for the period of time prior to the balloon, and at the time the balloon is due, you can choose to walk away, or move in to somethig newer.  Or, you can choose to pay the balloon.

Going to the dealership in a while here to check it out, but I think after April 30, it is only available in Illinois and Texas (according to the Mini website).

More to come.

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Do you have a link to it?  Unlimited mileage with the option to walk away sounds like a big money loser for the lender. 

[Anonymous]

It isn't unlimited mileage.  Just like a regular lease, you choose your level.  I am looking at 15,000 miles a year.

If you go to the Mini site, and buil your own, then select "Owners Choice"  (it may only show as an option if you select IL or TX as your state).