Cash or Finance?
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573 Posts
I was told by a couple of dealers that they could match the best APR I can get anywhere else, wonder if they know I can get a 7.9% APR graduate loan from HSBC? 
Andy
Andy
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150 Posts
How about leasing the car?
If you love it after 3 yrs you can buy it.
If you want to upgrade, in 3 yrs. you can probably get an Alpina version!
Or if you hate it , just give it back.
Intrest these days must be pretty low.
If you love it after 3 yrs you can buy it.
If you want to upgrade, in 3 yrs. you can probably get an Alpina version!
Or if you hate it
, just give it back.Intrest these days must be pretty low.
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883 Posts
Just out of interest, are there any special terms and conditions for applying for or using MINI HP Finance that aren't mentioned in the 'MAKE ME YOURS' brochure? Are there any snags if someone is self employed (like I could be in the near future)?
Has anyone been asked to provide any additional guarantees? I have often seen in the small print of HP loans "Additional guarantees may be required" but I have never been personally asked for them - for my previous car it was simply the case of the salesman asking me to sign two or three different documents. Is it the same for MINI HP Finance?
Has anyone been asked to provide any additional guarantees? I have often seen in the small print of HP loans "Additional guarantees may be required" but I have never been personally asked for them - for my previous car it was simply the case of the salesman asking me to sign two or three different documents. Is it the same for MINI HP Finance?
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2,441 Posts
I can get a 7.7% loan via work. But I am intending to pay in full in cash. This is subject to me selling my present mini, but hopefully this won't be a problem. I'm not a big fan of loans, after having just sat down and done some maths, all going well can scrape funds together for my MINI....fingers crossed on a few factors !
Cash
Cash has to be best value for money if you think you'll keep the car for a reasonable amount of time.
I hate paying interest on things. There's no sign of any 0% finance deals in MINI showroom windows yet but, if they don't soon sort out the lock and windows problems it's only a matter of time.
Cash has to be best value for money if you think you'll keep the car for a reasonable amount of time.
I hate paying interest on things. There's no sign of any 0% finance deals in MINI showroom windows yet but, if they don't soon sort out the lock and windows problems it's only a matter of time.
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150 Posts
Do you know what the residual percentage is for the MINI?
I'm thinking of leasing, but the dealers in the States know nothing about the leasing/financing structure, let alone anything about the car!
I'm thinking of leasing, but the dealers in the States know nothing about the leasing/financing structure, let alone anything about the car!
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330 Posts
Cash is best, but I'm not rich.
The dealers can match whatever you can find. Do a search, then ask them to match Fuzzywuggle and sons bankers offer of 2% or whatever. Thats what I did, and they did match the best APR I could find. (8% when I took delivery, so 7.9% shouldn't pose a problem). The big advantage to this is that you can look for personal loan rates, but the dealer will arrange a car loan - car loans look better on any subsequent credit search, so if things change and you need to remortgage your home to pay for that wild night with Cameron Diaz and her identical twin sister, you can.
The dealers can match whatever you can find. Do a search, then ask them to match Fuzzywuggle and sons bankers offer of 2% or whatever. Thats what I did, and they did match the best APR I could find. (8% when I took delivery, so 7.9% shouldn't pose a problem). The big advantage to this is that you can look for personal loan rates, but the dealer will arrange a car loan - car loans look better on any subsequent credit search, so if things change and you need to remortgage your home to pay for that wild night with Cameron Diaz and her identical twin sister, you can.
Official Mini Dealer Loan Rates
what sort or rates are you all getting from the dealers?
Im looking at putting around £10k cash down and finance the rest, but interested to see they dont offer 0%
Whats the best that anyone has got and we can use that as a tool on ours!
what sort or rates are you all getting from the dealers?
Im looking at putting around £10k cash down and finance the rest, but interested to see they dont offer 0%
Whats the best that anyone has got and we can use that as a tool on ours!
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59 Posts
Cash is obviously best but.....
Disagree LMB regards the finance co. interest due vs. car loan interest due - If you wanted to pay back your loan/finance early (for whatever reason) then an interest rebate would be made in accordance with the consumer credit act (rebate on early settlments) regulations which would be the same in both cases, different rates maybe but the same result.
If your car gets tanned within the first year then your policy should cover you for a car of the same spec as the one robbed.
Disagree LMB regards the finance co. interest due vs. car loan interest due - If you wanted to pay back your loan/finance early (for whatever reason) then an interest rebate would be made in accordance with the consumer credit act (rebate on early settlments) regulations which would be the same in both cases, different rates maybe but the same result.
If your car gets tanned within the first year then your policy should cover you for a car of the same spec as the one robbed.
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59 Posts
Sorry for the long winded reply but...
Mini finance states in their small print that they are bound by the CCA rebate regulation I mentioned earlier to give you a rebate of interest as per the terms laid out by that regulation if you want to settle early (which is exactly the same terms quoted by the several banks that I have paid back loans early to) - either because you want to come out early or because you are paying back insurance claim payout dough.
The shortfall insurance was explained to me as a way of covering your arse for any differential between what your insurance company decides is market value for your car, which should only be relevant after the 1st year as you whould be entitled to a like for like replacement in the fisrt year, and the actual amount of dough you still owe the finance company, taking into account the fact that most people spend 2-3 grand on extras which will not be reflected in the depreciated market value - certainly not at cost anyway.
i.e. you spend 11600 + 3K on extras = 14600
one year down the trade value guides will be listing your cars market value as being the depreciation of an 11600 car - ok the extras would make it a more saleable second hand prospect and may protect its value to a degree but you'd still be looking at an insurance payout figure of say 9500 (total guestimate)
My understanding is that the Mini shortfall insurance would then payout the differential between your insurers payout and the finance companies "amount owing figure" which should be calculated inclusive of the rebate as per the cons. credit act (rebates for early payments) regulations which mini finance quotes in their literature.
If anyone is looking in from Mini dealerships/finance please tell me if I'm wrong - cos that was how it was explained to me !
Mini finance states in their small print that they are bound by the CCA rebate regulation I mentioned earlier to give you a rebate of interest as per the terms laid out by that regulation if you want to settle early (which is exactly the same terms quoted by the several banks that I have paid back loans early to) - either because you want to come out early or because you are paying back insurance claim payout dough.
The shortfall insurance was explained to me as a way of covering your arse for any differential between what your insurance company decides is market value for your car, which should only be relevant after the 1st year as you whould be entitled to a like for like replacement in the fisrt year, and the actual amount of dough you still owe the finance company, taking into account the fact that most people spend 2-3 grand on extras which will not be reflected in the depreciated market value - certainly not at cost anyway.
i.e. you spend 11600 + 3K on extras = 14600
one year down the trade value guides will be listing your cars market value as being the depreciation of an 11600 car - ok the extras would make it a more saleable second hand prospect and may protect its value to a degree but you'd still be looking at an insurance payout figure of say 9500 (total guestimate)
My understanding is that the Mini shortfall insurance would then payout the differential between your insurers payout and the finance companies "amount owing figure" which should be calculated inclusive of the rebate as per the cons. credit act (rebates for early payments) regulations which mini finance quotes in their literature.
If anyone is looking in from Mini dealerships/finance please tell me if I'm wrong - cos that was how it was explained to me !
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657 Posts
GAP Insurance and Early Termination Insurance (ETI)
LMB,
I agree with "gonnandgotone" here. Sorry!
OK it's boring and middle aged, but all he say's is true... but there is more (BTW I am not a financial advisor, so please do your own investigations based on my information - don't just take my word for it)!
GAP Insurance (for stolen/written-off Lease Vehicles)
If your car get's 'tanned' as he put's it, and you are paying what's known as GAP insurance (you can also pay it as a lump-sum at the start deal, it's on average £150 for 3 years cover), then this cover's you for any difference between the insurance pay-out and the outstanding finance on the car. It simply means that you can insure against the un-insured loss of funds. All leasing companies have different types of GAP. Some pay a fixed amount (£5000 for instance), some offer to settle the debt on the outstanding finance. Please read each one and weigh up what you think you need.
Early Termination Insurance (ETI)
This facility isn't always available form all the Leasing companies, but it's is worth considering. ETI pays out if:
- your made redundant,
- your employer goes out of business,
- you suffer critical illness,
- become too sick to work and pay the bills.
I've found that all Leasing companies are different, so you really need to read that small print. Some pay for a limited time, others pay a lump sum, etc., etc. Worth knowing that ETI exists though I think.
Finally, nearly all the PCP (Private Contract Purchase)leasing companies that I've looked at make you the "Registered Keeper" of the vehicle. So it is (dependant on your payments) yours. It's as much your's as if you'd got a loan at the bank to buy it.
Hope all my meanderings help.
PS: Take a look at "http://www.moneysupermarket.com" for a fantastic loan comparison program. You can even find a new credit card whilst your there!!!
PPS: Do a search in "http://www.google.co.uk" for "PCP CAR LEASE" or goto central leasing databases like "http://www.uk-carleasing.co.uk/index.asp". Best of luck.
LMB,
I agree with "gonnandgotone" here. Sorry!
OK it's boring and middle aged, but all he say's is true... but there is more (BTW I am not a financial advisor, so please do your own investigations based on my information - don't just take my word for it)!
GAP Insurance (for stolen/written-off Lease Vehicles)
If your car get's 'tanned' as he put's it, and you are paying what's known as GAP insurance (you can also pay it as a lump-sum at the start deal, it's on average £150 for 3 years cover), then this cover's you for any difference between the insurance pay-out and the outstanding finance on the car. It simply means that you can insure against the un-insured loss of funds. All leasing companies have different types of GAP. Some pay a fixed amount (£5000 for instance), some offer to settle the debt on the outstanding finance. Please read each one and weigh up what you think you need.
Early Termination Insurance (ETI)
This facility isn't always available form all the Leasing companies, but it's is worth considering. ETI pays out if:
- your made redundant,
- your employer goes out of business,
- you suffer critical illness,
- become too sick to work and pay the bills.
I've found that all Leasing companies are different, so you really need to read that small print. Some pay for a limited time, others pay a lump sum, etc., etc. Worth knowing that ETI exists though I think.
Finally, nearly all the PCP (Private Contract Purchase)leasing companies that I've looked at make you the "Registered Keeper" of the vehicle. So it is (dependant on your payments) yours. It's as much your's as if you'd got a loan at the bank to buy it.
Hope all my meanderings help.
PS: Take a look at "http://www.moneysupermarket.com" for a fantastic loan comparison program. You can even find a new credit card whilst your there!!!
PPS: Do a search in "http://www.google.co.uk" for "PCP CAR LEASE" or goto central leasing databases like "http://www.uk-carleasing.co.uk/index.asp". Best of luck.
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59 Posts
Cheers wayne, I was hoping I hadn't gone out on a limb there !
BTW just re-read my post apologies for some of the spelling but it is past my bedtime now !
Update - LMB to quote your example you wouldn't be owing the finance company 18500 you would be owing them 18500 minus the rebate calculated under the terms of the blah blah repayment act thingy - which should amount to the same final amount if you were paying back a bank loan rather than finance as the banks subscribe to the same consumer credit act as BMW finance
BTW just re-read my post apologies for some of the spelling but it is past my bedtime now !
Update - LMB to quote your example you wouldn't be owing the finance company 18500 you would be owing them 18500 minus the rebate calculated under the terms of the blah blah repayment act thingy - which should amount to the same final amount if you were paying back a bank loan rather than finance as the banks subscribe to the same consumer credit act as BMW finance
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