MINI2

Armand Tanzarian · May 13th, 2002, 04:57 AM

The Mini purchase plan finance is about 14%apr. The good news is that Direct Line Car purchase plan is about 8%.

I'm looking to finance a new cooper and using Direct Line instead of MINI saves me £30 a month and the final payment is £1000 less.

Frank

spanky2k · May 13th, 2002, 05:06 AM

Ouch! Thats quite a lot! I heard that most people went for finance other than MINIs. Their insurance isn't very good either apparently. Poor show.

Ooh, look, my 300th post! Yay!!!

Kinster · May 13th, 2002, 05:11 AM

That's the way it is!

cmt · May 13th, 2002, 05:14 AM

It's always worth trying to get them to match a quote you have obtained elsewhere. They did for me but that was HP, not PCP.

Mini Beemer · May 13th, 2002, 06:39 AM

On Saturday when I finally got round to purchasing mine, I showed the BMW Business Manager person (different from the Sales person) a Direct Line printout/quote from the web - he gave me the usual sales pitch, and talked about all financing options... but at the end of the day matched the quote from Direct Line, which as you say is around 8%.

Armand Tanzarian · May 13th, 2002, 10:06 AM

Apart from using Direct Line for the loan. Loan Payment protection of £200 per month can be had for £12 per month from freeinsuranceuk.com. This compares to the £30 per month that Direct Line charge.

Frank

KenL · May 13th, 2002, 10:33 AM

Is there any advantage to taking HP rather than a loan to buy a car?

dietcokeplease · May 13th, 2002, 11:19 AM

Sometimes there's an advantage.

Usually when manufacturers offer really realy low rates of finance they only offer it on HP. HP means that the car belongs to the finance company until you make the final payment. This gives security to the finance company as they have something to repo in the event of default.

Personal Loans aren't usually secured on anything and therefore you can spend it on what you like. If you default on a loan it will be harder for the bank to collect money from you as the procedure is more drawn out.

Overall there's no real difference between them. Paying cash today won't normally get you more discount. Getting finance from a dealer will mean that he will get commission and earn more dosh = more dosh for you to chip away from him!

robby · May 13th, 2002, 12:48 PM

The dealers will always match the market rates. Mine didn't even bother to even suggest that I sign up to 14%APR. So long as you look as though you know what you are talking about and take a few adverts with you, they will match the best market rates. The good thing about MINI finance is that you can walk in to the dealership in the morning, like I did, make an instant decision and drive out with your new MINI in the afternoon!!

cpaulr · May 13th, 2002, 02:46 PM

My dealer was really good, when I mentioned that I was getting my own finance, he didn't just match it, he bettered it, and then gave me my arrangement fee back before my first payment went out.

Can't fault em for that!

Milquetoast · May 13th, 2002, 06:39 PM

The creepy thing is that the 14% interest rate is not the rate you'll actually be paying because it is an APR. I suppose it's a moot point anyway, since Direct Line and other lending institutions also quote APRs (so you are comparing apples to apples). But the real rate is the effective annual rate: for 14% APR, the EAR is almost 15%, for 8% APR, the EAR is only 8.3% (assuming monthly payments). So in actuality, by going with the 8% loan, you are doing even better than what the 6% difference in APR would indicate.

I'll be using an equity line of credit to get my car - 6% interest and the interest is tax deductible (at least in the US

).

Lee Bradshaw · May 15th, 2002, 07:02 PM

I got my Mini in London at 6% APR!

Guess i am just a jammy geezer!!!

Lee

May 13th, 2002, 04:57 AM	#1
Armand Tanzarian MINI2 Newbie Join Date: May 2002 Local Time: 10:09 PM Posts: 6 Offline	Mini Finance taking the ! The Mini purchase plan finance is about 14%apr. The good news is that Direct Line Car purchase plan is about 8%. I'm looking to finance a new cooper and using Direct Line instead of MINI saves me £30 a month and the final payment is £1000 less. Frank

May 13th, 2002, 05:06 AM	#2 (permalink)
spanky2k MINI2 Crash Test Driver Join Date: Feb 2002 Location: Brighton Local Time: 11:09 PM Posts: 1,384 Offline	Ouch! Thats quite a lot! I heard that most people went for finance other than MINIs. Their insurance isn't very good either apparently. Poor show. Ooh, look, my 300th post! Yay!!! Spanky2k Officially the worst MINI driver in the Universe!!!

May 13th, 2002, 05:11 AM	#3 (permalink)
Kinster BarWeetGarNarWeetNinnyBon Join Date: Jan 2002 Location: Location: Location Local Time: 11:09 PM Posts: 2,709 Offline	That's the way it is! Hyper Blue/Blue MCSC with Chilli 'No man will make a great leader who wants to do it all himself' A. Carnegie

May 13th, 2002, 05:14 AM	#4 (permalink)
cmt MINI2 Lurker + Sponsor Join Date: Jul 2001 Location: Westhoughton, NW Eng Local Time: 11:09 PM Posts: 1,211 Offline	It's always worth trying to get them to match a quote you have obtained elsewhere. They did for me but that was HP, not PCP. Currently driving: Silver Volkswagen Lupo GTi, 6 speed, 125bhp

May 13th, 2002, 11:19 AM	#8 (permalink)
dietcokeplease Official MINI2 Fluffer Join Date: Jul 2001 Location: Spearmint Rhino Local Time: 10:09 PM Posts: 5,315 Offline	Sometimes there's an advantage. Usually when manufacturers offer really realy low rates of finance they only offer it on HP. HP means that the car belongs to the finance company until you make the final payment. This gives security to the finance company as they have something to repo in the event of default. Personal Loans aren't usually secured on anything and therefore you can spend it on what you like. If you default on a loan it will be harder for the bank to collect money from you as the procedure is more drawn out. Overall there's no real difference between them. Paying cash today won't normally get you more discount. Getting finance from a dealer will mean that he will get commission and earn more dosh = more dosh for you to chip away from him! There is just one moon and one golden sun; And a smile mean friendship to ev'ryone; Through the mountains divide, and the oceans are wide; It's a small world after all.

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May 13th, 2002, 06:39 AM	#5 (permalink)
Mini Beemer MINI2 Regular Join Date: Mar 2002 Location: Glasgow Local Time: 10:09 PM Posts: 122 Offline	On Saturday when I finally got round to purchasing mine, I showed the BMW Business Manager person (different from the Sales person) a Direct Line printout/quote from the web - he gave me the usual sales pitch, and talked about all financing options... but at the end of the day matched the quote from Direct Line, which as you say is around 8%.

May 13th, 2002, 10:06 AM	#6 (permalink)
Armand Tanzarian MINI2 Newbie Join Date: May 2002 Local Time: 10:09 PM Posts: 6 Offline	Apart from using Direct Line for the loan. Loan Payment protection of £200 per month can be had for £12 per month from freeinsuranceuk.com. This compares to the £30 per month that Direct Line charge. Frank

May 13th, 2002, 10:33 AM	#7 (permalink)
KenL MINI2 Master Join Date: May 2002 Location: Edinburgh Local Time: 11:09 PM Posts: 5,210 Offline	Is there any advantage to taking HP rather than a loan to buy a car?

May 13th, 2002, 12:48 PM	#9 (permalink)
robby MINI2 Newbie Join Date: Apr 2002 Location: coventry Local Time: 10:09 PM Posts: 33 Offline	The dealers will always match the market rates. Mine didn't even bother to even suggest that I sign up to 14%APR. So long as you look as though you know what you are talking about and take a few adverts with you, they will match the best market rates. The good thing about MINI finance is that you can walk in to the dealership in the morning, like I did, make an instant decision and drive out with your new MINI in the afternoon!!

May 13th, 2002, 02:46 PM	#10 (permalink)
cpaulr MINI2 Newbie Join Date: Nov 2001 Location: Nottingham Local Time: 10:09 PM Posts: 28 Offline	My dealer was really good, when I mentioned that I was getting my own finance, he didn't just match it, he bettered it, and then gave me my arrangement fee back before my first payment went out. Can't fault em for that!

May 13th, 2002, 06:39 PM	#11 (permalink)
Milquetoast MINI2 Regular Join Date: Apr 2002 Local Time: 02:09 PM Posts: 104 Offline	The creepy thing is that the 14% interest rate is not the rate you'll actually be paying because it is an APR. I suppose it's a moot point anyway, since Direct Line and other lending institutions also quote APRs (so you are comparing apples to apples). But the real rate is the effective annual rate: for 14% APR, the EAR is almost 15%, for 8% APR, the EAR is only 8.3% (assuming monthly payments). So in actuality, by going with the 8% loan, you are doing even better than what the 6% difference in APR would indicate. I'll be using an equity line of credit to get my car - 6% interest and the interest is tax deductible (at least in the US ).

May 15th, 2002, 07:02 PM	#12 (permalink)
Lee Bradshaw Leeroy Brown Join Date: Mar 2002 Local Time: 10:09 PM Posts: 352 Offline	Poor bastards!!! I got my Mini in London at 6% APR! Guess i am just a jammy geezer!!! Lee

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