MINI2

BritishRacingMini · Sep 10th, 2007, 07:02 AM

Just wondering if anyone has had any extreme experiences with Mini Select. Due to low depreciation the Mini Select deal seems very good. I wondering if I should go down this route or just pay cash.

Any views welcome.

Martin L · Sep 10th, 2007, 07:44 AM

PCP is a rip off.
Sit down and do the maths and basically for a couple of grand more you can actually OWN the car at the end rather then paying a huge fianl payment to own.

It is a no brainer to go with a normal bank loan.
Cash isn't a great route either if you can get a loan lower then bank interest rates.
I managed to get 4% APR from BMW earlier in teh year

rec · Sep 10th, 2007, 09:20 AM

well, i went on PCP and it's fine for me as I am planning on giving the car back anyway by swapping it out for an S in a couple of months.

ALD0 · Sep 10th, 2007, 09:29 AM

May as well lease the car if you go down the PCP rooute as you never own the car unles ya pay that massive balloon payment at the end!

bigpoppa81 · Sep 12th, 2007, 06:13 PM

im thinking about getting a mini on the lease plan becuase i dont mind not actually owning the car, and i want to have lower monthly payments. If i can get a cooper s for cheaper than it would cos to get a bank loan and take it out over 5 years then so be it.

on the lease plan what are the limitations? ie can you put cooper s wheels on it it if did not have them already?

ALD0 · Sep 13th, 2007, 07:40 AM

Quote: Originally Posted by bigpoppa81 (original)

im thinking about getting a mini on the lease plan becuase i dont mind not actually owning the car, and i want to have lower monthly payments. If i can get a cooper s for cheaper than it would cos to get a bank loan and take it out over 5 years then so be it.

on the lease plan what are the limitations? ie can you put cooper s wheels on it it if did not have them already?

You may as well get a 3 year lease, think it's about £300 a month, yes you could put different wheels on it,although you would obviously have to check and notify insurance company, also if the tyres under the lease plan are included which most are they would only pay for tyres to replace the wheels that were on the car at start of leasing I think.
Only downside toleasing is mileage restrictions and also cosmetic damage on returning the vehicle.

Hat · Sep 13th, 2007, 08:00 AM

personal leasing is a much better option that PCP.

PCP is the most expensive way to buy a car; the rates are always sky high & you're paying interest on money you are not actually borrowing, ie the balloon amount. you'd be much better taking out a personal loan for longer than you need & paying it back early

MBmini · Sep 13th, 2007, 11:43 AM

i disagree!

everyone preaches that the SELECT scheme is a rip off but i feel that's wrong.

you put down an affordable deposit and the repayments work out cheap because you're not financing the total value of the car - hence this makes a £20k car affordable to a larger proportion of consumers.

the guaranteed future value (or final repayment) is always very modest, this means that you should always have equity in your car when you come to sell or swap.

i have just ordered a mini - put £3500 down as a deposit, i will pay £220 a month and at the end of my term, from analysing used mini's on the market that have done similar mileague, of similar age, spec etc of what my car will have done, i'm very confident i will get nearly all of my deposit back. to conclude, my £17.5k is only going to cost me £220ish a month and i'm sure i will get the bulk of my deposit back - if thats a rip off, then i'm happy as larry to be ripped off!

SELECT - makes expensive cars affordable - consumers benefit, BMW benefit, i don't have any hard feelings!

don't listen to the sceptics - why finance the full amount and own more of a poor investment, which we all know cars are!

ALD0 · Sep 13th, 2007, 12:40 PM

Yopu have just contradicted your self there saying cars are a poor investment and then raving on that after looking at MINI's second hand market, you are confident in getting all or majority of your deposit back?

Either way of paying isn't really classed as a good investment, market trends change (Launch of Traveller) Fuel prices rise/Insurance prices rise, interest rates rise, more people in debt, less people will buy new cars or more people will buy new cars (with companies stupid enough to lend them money) and the newish second hand car market gets over flooded.
Other companies launch new models which may be more appealing to them than a MINI.

Whatever way you buy a new car, plough 17k in to it and you will lose money on depreciation, pay to lease the car, the car is never in fact yours and that is 'dead money' but you don't have to worry about maintenance, taxing the car or worry about depreciation either!

Hat · Sep 13th, 2007, 01:42 PM

one thing i will say regarding PCPs - check the mileage limit carefully. there are usually big penalties for going over an agreed mileage as obviously this affects the value of the car at the end of the term

MBmini · Sep 14th, 2007, 08:17 AM

there's no contradiction - cars are a poor investment and mini select is a good way to manage that investment by allowing bmw to take on most of the risk.

Martin F · Sep 14th, 2007, 09:31 AM

Quote: Originally Posted by MBmini (original)

i disagree!

you put down an affordable deposit and the repayments work out cheap because you're not financing the total value of the car - hence this makes a £20k car affordable to a larger proportion of consumers.

Not true. The way Select, or any other PCP scheme works from the finance providers viewpoint is that the finance provider buys the car and then charges a monthly amount to cover interest on the amount financed and a further sum to reduce the capital outstanding to the amount of the balloon payment at the end of the finance period.

And to reflect this the APR is calculated on the amount outstanding, including the balloon payment, over the term.

The advantage to the buyer is that you can effectively pay as you drive and to the dealer it is that you may not want to make the balloon payment so hopefully will buy another car at the end of the PCP period.

The best way of saving is to get a low APR. Sometimes a loan over a longer period than the PCP can offer better value as well.

KostaLot · Sep 14th, 2007, 10:19 PM

My mileage penalty is 1.5p per mile if i remember rightly. Not bad!

ALD0 · Sep 16th, 2007, 10:45 AM

Quote: Originally Posted by KostaLot (original)

My mileage penalty is 1.5p per mile if i remember rightly. Not bad!

When I first started driving I bought a Fiesta and I'm sure it was 4 p a mile

I will say the good thing with PCP is put a low deposit down and pay ya monthly installments, when you have paid half the full outstanding balance, you can just give the car back to the finance company and end the agreement...

Sep 10th, 2007, 07:02 AM	#1
BritishRacingMini MINI2 Newbie Join Date: Aug 2007 Location: Planet Earth Local Time: 01:21 PM Posts: 11 Offline	Finance - The Good, Bad and Ugly Just wondering if anyone has had any extreme experiences with Mini Select. Due to low depreciation the Mini Select deal seems very good. I wondering if I should go down this route or just pay cash. Any views welcome. Open is the Business

Sep 10th, 2007, 07:44 AM	#2 (permalink)
Martin L MINI defector Join Date: Mar 2002 Location: Harefield Local Time: 01:21 PM Posts: 13,597 Offline	PCP is a rip off. Sit down and do the maths and basically for a couple of grand more you can actually OWN the car at the end rather then paying a huge fianl payment to own. It is a no brainer to go with a normal bank loan. Cash isn't a great route either if you can get a loan lower then bank interest rates. I managed to get 4% APR from BMW earlier in teh year MINI, RX8 and MX5 - Done those............. It's now TTime Unofficial MINI2.com bean counter

Sep 10th, 2007, 09:20 AM	#3 (permalink)
rec Not a happy bunny. Join Date: Oct 2006 Location: Scotthall MINI Often Local Time: 01:21 PM Posts: 1,217 Offline	well, i went on PCP and it's fine for me as I am planning on giving the car back anyway by swapping it out for an S in a couple of months. Got an R56 ? Flaunt It ! http://www.mini2.com/forum/general-d...st-ya-r56.html

Sep 14th, 2007, 10:19 PM	#13 (permalink)
KostaLot Team VaVaVoom 2008 Join Date: Jul 2006 Location: Morecambe Local Time: 01:21 PM Posts: 980 Offline	My mileage penalty is 1.5p per mile if i remember rightly. Not bad! 330 BHP + 0-60 in 4.3 Seconds = 2008 Elf Renaultsport Clio Cup Team - I'm looking for sponsors, pm me if interested

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Sep 10th, 2007, 09:29 AM	#4 (permalink)
ALD0 MINI2 Master My Classifieds Join Date: Jun 2003 Location: Chester Local Time: 01:21 PM Posts: 9,434 Offline	May as well lease the car if you go down the PCP rooute as you never own the car unles ya pay that massive balloon payment at the end!

Sep 12th, 2007, 06:13 PM	#5 (permalink)
bigpoppa81 MINI2 Regular My Classifieds Join Date: May 2006 Local Time: 01:21 PM Posts: 163 Offline	im thinking about getting a mini on the lease plan becuase i dont mind not actually owning the car, and i want to have lower monthly payments. If i can get a cooper s for cheaper than it would cos to get a bank loan and take it out over 5 years then so be it. on the lease plan what are the limitations? ie can you put cooper s wheels on it it if did not have them already?

Sep 13th, 2007, 07:40 AM	#6 (permalink)
ALD0 MINI2 Master My Classifieds Join Date: Jun 2003 Location: Chester Local Time: 01:21 PM Posts: 9,434 Offline	Quote: Originally Posted by bigpoppa81 (original) im thinking about getting a mini on the lease plan becuase i dont mind not actually owning the car, and i want to have lower monthly payments. If i can get a cooper s for cheaper than it would cos to get a bank loan and take it out over 5 years then so be it. on the lease plan what are the limitations? ie can you put cooper s wheels on it it if did not have them already? You may as well get a 3 year lease, think it's about £300 a month, yes you could put different wheels on it,although you would obviously have to check and notify insurance company, also if the tyres under the lease plan are included which most are they would only pay for tyres to replace the wheels that were on the car at start of leasing I think. Only downside toleasing is mileage restrictions and also cosmetic damage on returning the vehicle.

Sep 13th, 2007, 08:00 AM	#7 (permalink)
Hat cook pass babtridge My Classifieds Join Date: Oct 2002 Local Time: 01:21 PM Posts: 15,800 Offline	personal leasing is a much better option that PCP. PCP is the most expensive way to buy a car; the rates are always sky high & you're paying interest on money you are not actually borrowing, ie the balloon amount. you'd be much better taking out a personal loan for longer than you need & paying it back early

Sep 13th, 2007, 11:43 AM	#8 (permalink)
MBmini MINI2 Newbie Join Date: Feb 2007 Local Time: 12:21 PM Posts: 14 Offline	i disagree! everyone preaches that the SELECT scheme is a rip off but i feel that's wrong. you put down an affordable deposit and the repayments work out cheap because you're not financing the total value of the car - hence this makes a £20k car affordable to a larger proportion of consumers. the guaranteed future value (or final repayment) is always very modest, this means that you should always have equity in your car when you come to sell or swap. i have just ordered a mini - put £3500 down as a deposit, i will pay £220 a month and at the end of my term, from analysing used mini's on the market that have done similar mileague, of similar age, spec etc of what my car will have done, i'm very confident i will get nearly all of my deposit back. to conclude, my £17.5k is only going to cost me £220ish a month and i'm sure i will get the bulk of my deposit back - if thats a rip off, then i'm happy as larry to be ripped off! SELECT - makes expensive cars affordable - consumers benefit, BMW benefit, i don't have any hard feelings! don't listen to the sceptics - why finance the full amount and own more of a poor investment, which we all know cars are!

Sep 13th, 2007, 12:40 PM	#9 (permalink)
ALD0 MINI2 Master My Classifieds Join Date: Jun 2003 Location: Chester Local Time: 01:21 PM Posts: 9,434 Offline	Yopu have just contradicted your self there saying cars are a poor investment and then raving on that after looking at MINI's second hand market, you are confident in getting all or majority of your deposit back? Either way of paying isn't really classed as a good investment, market trends change (Launch of Traveller) Fuel prices rise/Insurance prices rise, interest rates rise, more people in debt, less people will buy new cars or more people will buy new cars (with companies stupid enough to lend them money) and the newish second hand car market gets over flooded. Other companies launch new models which may be more appealing to them than a MINI. Whatever way you buy a new car, plough 17k in to it and you will lose money on depreciation, pay to lease the car, the car is never in fact yours and that is 'dead money' but you don't have to worry about maintenance, taxing the car or worry about depreciation either!

Sep 13th, 2007, 01:42 PM	#10 (permalink)
Hat cook pass babtridge My Classifieds Join Date: Oct 2002 Local Time: 01:21 PM Posts: 15,800 Offline	one thing i will say regarding PCPs - check the mileage limit carefully. there are usually big penalties for going over an agreed mileage as obviously this affects the value of the car at the end of the term

Sep 14th, 2007, 08:17 AM	#11 (permalink)
MBmini MINI2 Newbie Join Date: Feb 2007 Local Time: 12:21 PM Posts: 14 Offline	there's no contradiction - cars are a poor investment and mini select is a good way to manage that investment by allowing bmw to take on most of the risk.

Sep 14th, 2007, 09:31 AM	#12 (permalink)
Martin F Making it add up Join Date: Apr 2006 Location: Sussex Local Time: 01:21 PM Posts: 620 Offline	Quote: Originally Posted by MBmini (original) i disagree! you put down an affordable deposit and the repayments work out cheap because you're not financing the total value of the car - hence this makes a £20k car affordable to a larger proportion of consumers. Not true. The way Select, or any other PCP scheme works from the finance providers viewpoint is that the finance provider buys the car and then charges a monthly amount to cover interest on the amount financed and a further sum to reduce the capital outstanding to the amount of the balloon payment at the end of the finance period. And to reflect this the APR is calculated on the amount outstanding, including the balloon payment, over the term. The advantage to the buyer is that you can effectively pay as you drive and to the dealer it is that you may not want to make the balloon payment so hopefully will buy another car at the end of the PCP period. The best way of saving is to get a low APR. Sometimes a loan over a longer period than the PCP can offer better value as well.

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Sep 16th, 2007, 10:45 AM	#14 (permalink)
ALD0 MINI2 Master My Classifieds Join Date: Jun 2003 Location: Chester Local Time: 01:21 PM Posts: 9,434 Offline	Quote: Originally Posted by KostaLot (original) My mileage penalty is 1.5p per mile if i remember rightly. Not bad! When I first started driving I bought a Fiesta and I'm sure it was 4 p a mile I will say the good thing with PCP is put a low deposit down and pay ya monthly installments, when you have paid half the full outstanding balance, you can just give the car back to the finance company and end the agreement...