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Discussion Starter · #1 ·
I've never leased a car but I am thinking about doing this with my MINI.

Have a good idea of the negatives and positives of leasing, but I would like to know what the monthly payment differences will be.

Any good lease calculators out there? I've checked on BMW's website just to get an idea.
 

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I've leased before, but had a trade-in, so I'd be interested in the response to this, too.
 

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It will depend on the residual value of the MINI.
BMW 3 series are about 62%, but no telling what the MINI will be. Volkswagen is about 58% w/ another 2% taken off for having the car in a 5 speed. My Mazda minivan is 54%.
This makes a real difference w/ a lease. Mileage is also a factor... it sucks if you get up on the mileage and are watching your odometer like the meter of a taxi.:(
I have found a good rule of thumb being $150 / $10,000.
Examples:
2000 BMW 323i Sell Price 31,000 : lease $460/mo
2002 BMW 330i Sell Price 33,000 : lease $498/mo

Money factor is important too...
I think BMW is about 2.3
It is less for a 330 than a 325... go figure.

I'm leasing mine. Pretty loaded it will be about $360/mo.
I'm guessing the S will be between $315 - $375.
 

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You can get a pretty good estimate of a lease payment on any mortgage calculator as a lease is nothing more than a loan with a baloon payment. In round numbers, suppose you leased a $24,000 car for three years with a $12,000 residual. The lease is a three year loan of $24,000 with a $12,000 baloon payment at the end. A lot of people talk about leases as though they were somthing magic when they are really just another way of paying for money. The only magic part is the many ways dealers can hide costs by adjusting the residual or having extra fees at the end.

Unless you are really sure you want to trade in at a pre-determined time, I always avoid a lease. Consider a 60 month loan instead if the monthly payments are a problem with shorter loans. You can still trade in after three years and pay off the balance - you will probably even get cash back at the end of the three years unlike the lease. The advantage of the loan is that you are not forced to sell the car, stick to special mileage rules or get ripped off if the dealer hits you with a surcharge because there is a scratch in the paint.
 

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Does anyone know what the lease rates will be for the mini?

I am guessing they will be the same as most BMW's right?

I am getting to the point where I might have to let my baby go and get something else much cheaper :(... I realy hope that dealers are not out to get people too badly up here in Canada.

I really don't want that to happen. Its been my dream to drive a new mini ever since I saw the first concept.
 

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S2000&CooperS said:
I've never leased a car but I am thinking about doing this with my MINI.
DO NOT LEASE a car, it is the single MOST EXPENSIVE way possible to finance a car. If it's the only way you can find to pay for it then you simply cannot afford the car to begin with and need to either buy something cheaper or not buy anything and save for a couple years.
 

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Leasing a car is fine.
I don't want an old (4yr) car.
I like new cars. Technology is also changing... you can get better cars cheaper. I also like the change.
In 3yrs I will get the Alpina or works version, if I like the car at all.
Plus, selling a car is the worst experience ever.
Buy a car if you plan on owning it at least 5-7yrs.
 

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coopercrazy said:
Leasing a car is fine.
I don't want an old (4yr) car.
I like new cars. Technology is also changing... you can get better cars cheaper. I also like the change.
In 3yrs I will get the Alpina or works version, if I like the car at all.
Plus, selling a car is the worst experience ever.
Buy a car if you plan on owning it at least 5-7yrs.
Whooh! I can see you and I are coming from totally different perspectives here. Sure wish I had the money you are wasting but that's your cross to bear.

I do plan on owning my MINI for a long long time, wish I had the patience to buy it used in about 4 years though as I could buy your "old" car for about 30% less than you paid for it.

But then, some people rent their furniture too.
 

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That has nothing to do with leasing. Cars depreciate the most when new so anyone who gets a new car will pay more. Anyone who changes cars every 3 years will be paying more than someone who keeps cars 6 years whether they buy or lease.

A good lease rate with a good residual value and no catches (e.g. fees to turn in the car) should cost the same as an equivalent loan. The advantage is that you don't need the 10-20% down but the big disadvantage for me is being told when to get the next car and how many miles to drive to avoid excessive fees. What do you do if your dream car in 3 years has as long an order backlog as the MINI and you are stuck with having to turn in the lease? I will be sticking with a regular loan and extending the length of the loan if I need to lower the payments.
 

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Okay, guess I was wrong all along. If you don't plan on keeping the car over a year or so, don't drive it, don't make any changes to it, and don't plan on ever owning it, a lease is a perfectly reasonable way to go.
 

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Discussion Starter · #13 ·
About $507 a month assuming no money down, 3% sales tax (the rate here in VA), 60 months, 8.5% rate
 

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So does anyone know what a $24,000 car will cost over 5yrs with a loan at 8.5%, monthly that is.

Using auto loan calulator from my Credit Union website:

$24,000 @ 8.5% for 5 years = $492/Month
 

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Discussion Starter · #15 · (Edited)
Well, my situation is this:

- WILL NOT be making any mods to the car other than maybe wheels
- I drive 60 miles roundtrip to work, drive 300 per week
- Take the S2000 to work on nice days
- Could lease the MINI, driving somewhere between 12-15000 miles per year, depending on how much I drive the other car
- My Integra is sliding towards unreliable at 187,000 miles
- Don't want to drive the S2000 to work everyday
- I REALLY dig the MINI, love it :D
- Would prefer a new car for commuting versus another used car
- I REALLY dig the MINI, love it :D
- Even though I keep cars for a long time, I would most likely trade it in about 3 or 4 years as the mileage will be creeping "up there" (not bad) and some other cool car will come along again
- The MINI's price is very attractive, affordable for most people

Did I mention that.......I REALLY dig the MINI, love it :D
 

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S2000,

If you have other cars to bounce the mileage off onto, then a lease might make sense.
At approx $500 / month, ouch.
Or if you put $10,000 down your payment will drop to about $350/mo.
I'm not one for sinking alot of cash into a heavily depreciating asset.
If you lease and put the $10,000 into Cisco...
By the time the lease is up it will be worth $15-$18,000.
I see it as $500 / month, regardless on how it is spent.
A lease will be $350; big difference.
I am not puting down buying a car, this is just my opinion.
Unlike others on this site(and elsewhere for that matter),
I do not believe my opinion is the right way! It is just an opinion.
Leasing is not a way of financing a car...
It is a way of RENTING one.
 

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Investing in Cisco

Or that $10000 invested into Cisco may be worth....$2000.00 :confused: You just never know. I convinced my wife and parents to buy into Cisco at $60/share. Hopefully one day they will forgive and forget ! :)
 
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