If you are in the market for a new MINI in Miami, you have a lot of decisions to make. Do you prefer a hardtop Cooper coupe, a larger Countryman, or even a MINI Convertible? What color and options do you want? Base trim or all the bells and whistles? However, one of the most important decisions you will make is whether to finance or lease a MINI. Whichever option you choose will be based on a number of factors, such as your creditworthiness, your driving habits, your budget, and your lifestyle.
Here at our Miami car dealership, it’s our goal to make your buying experience pleasant, easy, and hassle-free. To ensure that’s the case, here are some key pros and cons of buying and leasing a new car.
MINI Financing
Car Finance Benefits
If you are someone who likes to own something and keep it for a while, then buying a car may be the right choice for you. Once you pay your car off, you own it outright. You’ll also have the satisfaction of knowing that car in your driveway is yours for as long as you want to keep it. Financing a vehicle is also great if you plan to pass it down to your kids when they are ready to drive.
What about cost? In the long run, an auto loan will likely save you money compared to a car lease. Much like your home mortgage, a car loan helps you build equity in your vehicle over the course of 3-5 years. Whenever it’s time to sell, you can do so and get some money back in your pocket. Calculate your estimated monthly payments using our online tool.
Not only will you be saving the monthly payments, but you won’t have to worry about lease mileage restrictions, either. Plus, if you like to customize your vehicle, you’ll be able to do so without worrying about returning a leased vehicle to the dealership in its original condition, minus normal wear and tear.
Car Finance Drawbacks
Equity is an important concept when thinking about buying a car. When you first purchase a vehicle, it loses some of its value over time. Of course, if you choose to keep the car, this is not a problem; but if you decide to sell or use your car as a trade-in, you may find yourself being “upside down” on your car loan. This is also known as having “negative equity,” which may result in you having to come up with the money to cover the difference between the balance on your loan and your car’s resale, market, or trade-in value. In some cases, you could negotiate to roll the negative equity of your old car into a new car loan. However, this will increase the amount financed and could affect your monthly payments.
Another point to consider is, with straight car loans, you may be required to put more money down. Generally, banks or lending institutions want between 10% and 20% of the vehicle’s purchase price as a down payment. In addition, your credit score will determine the loan’s interest rate, which will also affect your monthly payments and the total amount you will have paid for the car at the end of the loan.
Should You Buy/Finance?
Financing your MINI or next vehicle might make the most sense if you…
- Plan to keep your car for at least 3 years
- Drive over 10,000-12,000 miles per year
- Want to sell the vehicle and buy or lease another one
- Like the prospect of ownership
- Plan to customize your car with new wheel rims, spoilers, etc.
- Take good care of your vehicles
- Don’t mind paying more over a short length of time
MINI Leasing
Car Lease Benefits
When you lease a vehicle, you are essentially “renting” it from the dealership for a set amount of time. But with a lease, you are actually paying the difference between the car’s sticker price and its anticipated value at the conclusion of the lease. Here’s an example: Let’s say that the MSRP of your new MINI Cooper 4 Door is $25,000, and you decide on a 36-month MINI lease. If we assume the theoretical 3-year residual value of your MINI is 60% of the original purchase price, that means this particular vehicle would be worth around $15,000 at the end of the lease. Your monthly payments would therefore be calculated on the remaining $10,000 instead of the full $25,000. If you decide to keep your car, you still have the option of financing or purchasing it at its preset buyback price.
When you lease a MINI, you’ll likely pay less per month than you would on a MINI loan. Just as in a purchase, your monthly lease payments will also be affected by how much cash you are willing to put down. Car dealerships often run special promotions which sometimes offer $0 down and $0 due at lease signing. However, these offers could result in a higher monthly payment in the long run. Speak with your MINI salesperson if you’d like a breakdown of your monthly lease payments with $0 down vs. 20% down.
If you are someone who enjoys that “new car smell,” or if you like getting the newest car with the latest technology every couple of years, then leasing may be for you.
And, if you don’t want to bother with trading your car in and dealing with such things as trade-in value, you can drop the car off at the end of the lease and get another one. Read more about our MINI lease-return policy and process.
Another benefit to leasing is the warranty. Virtually all manufacturer warranties these days will cover you for the entire length of a standard 36-month car lease. (MINI even goes a step further by providing a full 48-month New Vehicle Warranty.) Essentially, you don’t have to worry about anything major going wrong with the car. However, you are still responsible for all routine maintenance, such as oil changes, as specified in your owner’s manual.
Car Lease Drawbacks
Just like buying, there are many benefits to leasing a vehicle. But there are also some drawbacks you should take into consideration.
Not building equity in the vehicle can be a negative for some people. When you buy a car, you build equity in it just like you would a house. However, with a lease you are essentially “renting” the car, so you aren’t building any equity at all, just like renting an apartment. You also must have excellent credit to qualify for a lease.
Another thing to consider are lease restrictions. Can you stay at or under the lease’s mile restrictions, which can range anywhere from 9,000 to 15,000 miles per year? Can you keep your vehicle in good condition, without any wear-and-tear damages? Because if you exceed your mileage cap or return your vehicle with excessive wear and tear, you’ll be hit with expensive overage fees and charged extra for repairs.
More on mileage restrictions: With a MINI, you can opt for a unique Motoring Lease to choose your mileage cap. Whether it’s 5,000 or 100,000 miles, your lease plan and payments will be customized to meet your needs. It’s certainly a better option than your traditional auto lease if you are an atypical driver. Ask our Braman MINI Financing Department for details if this applies to your situation.
Should You Lease?
Leasing your MINI or vehicle might make most sense if you…
- Like to get a new car every 2-3 years
- Drive fewer than 10,000-12,000 miles per year
- Don’t plan to customize your vehicle
- Enjoy paying lower monthly payments
- Like to be covered by a warranty at all times
- Don’t mind paying more for car insurance
- Take good care of your vehicles
Buy or Lease at Braman MINI of Miami
Whether you decide to lease or to purchase your next vehicle, the best decision you can make is to buy it from your friends at our MINI dealership in South Florida. Stop by Braman MINI of Miami at 2060 Biscayne Blvd to shop our selection and learn more about financing or leasing your next vehicle. You can also call our team at 786-577-5219 to schedule a test drive or speak with a member of our financing department about your car loan or lease application.
