Question about financing a new car ... (1 Viewer)

[Aurel Savin]

I am sure you guys can help me on this one ...

Looking to pick up a new MINI Cooper and finance it for 48 or 60 months, not sure on the lenght yet.

My question is that if let's say in 1 year or less, I want to sell the car how do I go about it since I am still making payments on it?

Sounds like a simple question, but this would be my first new car purchase.

Thanks!

 

[Christ Reynolds]

you will have to pay off the rest of the loan. DONT have anyone else take over the payments, very bad idea. the buyer will get a loan from his bank, the bank will pay the bank that gave you a loan, and once the money clears, the title is released, and the car is sold. however, selling it after a year or so doesnt make much financial sense, you have no 'equity' in the car if you sell it and dont own it. its as if you rented the car for a year and then got rid of it with nothing to show for it. but if you are in a position where you have to sell it, then it doesnt matter. if you finish the loan, then you own the car outright. out of curiosity, where do you buy a mini? i know bmw designs amd manufactures them, but where are they sold? i doubt they would have their own dealerships. they are slick little cars, i like them. anyway, best of luck.

CJ

 

[Joel Mack]

You'll still be required to finish paying off the loan, regardless of whether or not you still own the car.

 

[Philip_G]

So..... gonna get the cooper S?

 

[Joel Mack]

out of curiosity, where do you buy a mini?

MiniUSA

I have a Mini dealer 14 miles away... I may have to go try one out...

 

[Jay H]

They have Mini dealerships. The one near me happens to be owned by a whole group of dealerships one of them is a BMW dealership but the showroom is completely separate from the showroom that sells BMWs and exclusively deals only in Minis. It was cool when the Mini first arrived the row of Coopers that were out front..

I've heard from some Mini Cooper forums that they've had some major problems with the CVT tranny that they offer.


Jay

 

[Angelo.M]

Selling a car or trading it in when you are still "upside-down" on your loan (you owe more than the car is worth; ah, depreciation!) doesn't seem like a great idea under any circumstance. If you suspect that you won't want the car after one year or so, you should strongly consider leasing it.

 

[Philip Hamm]

If you're planning to only have the car for a year, perhaps a lease would be a better idea.

 

[Aurel Savin]

Thanks for the tips guys.

The reason for the possible sale in a short time, might be a move to Europe. This is not 100% yet but I would still like to zoom around in a Cooper here.

If you're planning to only have the car for a year, perhaps a lease would be a better idea.

I initially wanted to lease, but isn't leasing a worse idea, easpecially for short term (12/24 month)? I would be paying a lot more monthly than financing, and if I have to jump ship there are major penalites for early termination. This was my concern with leasing.

Depreciation is not really a concern. Since it's initial release over a year ago, used 1 year old Coopers are still selling for about the same amount of money as new ones. Also on the books, they only lost $1500 in value in one year. The car is a hell of a value for about $18K.

Will have to look into this more, but if you have any more advice it is sure appreciated.

 

[Andrej Dolenc]

The mini's aren't losing value because they're a popular car right now - they're in demand. That won't last though, prices on them will start dropping once more mini's show up or another car becomes the new 'in' car.