[Pauline]

Hello

I had a call from the dealership who I have my Cooper on order with today.

Apparantly Mini have just reduced their finance rates in the UK to 3.5% APR....this is pretty competitive, seeing as the lowest APR I could find was Lombard at 6.6%

Has anyone used Mini Finance? Are they OK? Anyone got any feedback on this low APR??

[Bonjour]

That's pretty darn good. I think the rate was around 10% when I was ordering back in February, but fortunately was able to pay cash for mine.

I probably would have considered finance at 3.5% though.

[SteveBrass]

Hm. 3.5%apr is VERY cheap - less than bank rate. Is it definitely apr or flat rate? 3.5% flat is about 7% apr.

If it really is 3.5% apr, then it's a good deal - can't think how they are managing it. Do bear in mind though that on HP there will be an acceptance fee and final payment fee - these increase the apparent apr.

[Pauline]

I don't know why, but I'm sceptical about it!

I just spoke to the dealership again and they said the finance was all approved for me. The monthly repayment is a LOT lower than Lombard were offering, over the same period.

And there's no arrangement fees....I just wonder if Mini are trying to increase their finance sales??

[smeg24]

are you sure it doesn't have a "final" payment as well ?

[Pauline]

Think I'll double check!!

[chughes163]

3.5% is amazingly low - let me know if its right!

[scott321172]

The b a s t a r d s, if it is 3.5%APR and not Flat Rate. I haggled for an hour to get 6.9% in March!!!!

AAHHHHHHH!!!

[Fullupo]

just got my finance approved too. On a standard monthly repayment sceme it was 4.4% I think, and thats flat rate. No offence mate, but i think your mistaken. Ask the dealer what the flat rate and apr is

[stormcrow]

3.5% is Flat rate on MINI finance

[Pauline]

*confuzzled*!

So what's the difference between a flat rate and an APR rate???

If my monthly repayments are less on the Mini deal than the Lombard deal, surely I'd go for the Mini one??? Except if there are any arrangement fees??

Any accountants out there?!

[Bullett]

All credit agreement should quote % rates as AER these days dunno exactly what that means but they must all quote the AER rate in the same way so it's easy for us punters to compares different offers.
The bottom line is see waht the monthlys are and compare over the same period.
I would be very tempted with 3.5% I actually have the cash to pay but have another loan at a higher rate that would be paid off if I could get that deal. (8.5% on the other loan)

[Bullett]

Oh it stands for Annual Equivilent Rate.

Went I looked at MINI finance on the web they quote 13.9% which is silly money.

[Fullupo]

hmm, stormcorw, are u sure that flat rate is 3.5% cos if it is im gonna get on the phone to my dealer!

[yidaho]

Quote:

Originally posted by Bullett
All credit agreement should quote % rates as AER these days dunno exactly what that means but they must all quote the AER rate in the same way so it's easy for us punters to compares different offers.

This web page explains the differences, and there is a difference between APR and AER, which is demonstrated on the page, i.e. a situation may arise where one finance company's APR may be lower than another, but the latter will have a lower AER. Probably doesn't make a huge difference, but it's worth checking out.

[Bullett]

Good explaination, but I believe that all consumer credit companies must quote in AER which is always calculated in the same way unlike APR which can appear the same but depends on how each compnany calculates it.

[MarkMINI]

The 3.5% is flat rate. The reason they don't quote the APR straight away is that you can get two finance quotes for the same APR yet the monthy payments are different due to way the APR is calculated.

I was told that the 3.5% flat rate was equal to 7% APR, yet when I got quotes for personal loans for as low 6.6% APR, the monthly repayments were no lower than MINI finance.

Also, MINI finance is Regulated Finance, not a Personal Loan which is also better. Your dealer will be able to explain.

Hope that helps

Mark.

[SteveBrass]

The purpose of the AER is to allow level playing comparisons. When comparing monthly repayments do check whether some sort of payment protection is being included; a lot of online quotes default to include it (it's very lucrative for the lender). Also be aware that a HP agreement will probably have arrangement fees and option to purchase fees - typically £80 and £40. These add to the effective cost of borrowing. Also be aware that a personal loan means the car is yours - you can sell it when you wish, even if the loan is still not paid off. Which? the Cosumer's Association suggest comparing APR's. Also check out the following site.
http://www.oft.gov.uk/Consumer/Your+...y+and+credit..

IMHO, look at the APR's first, check for fees etc, watch out for payment protection costs, and then compare monthly repayments - based of course on the same deposit, over the same period of time, with the same residual value.

[Pauline]

Thanks for all your help! I'll go back to the dealer today and double-check everything

[epicdream]

The thing that put me off Mini Finance was the "final payment" part. The thought of paying money over 4 years for the priviledge of driving a Mini was a bit too cheeky.

At least with my personal loan, at the end of the term, the car is mine and I dont have to pay an extra 4 grand on top (what they quoted me!)

Neill