I hear ya, The 4% was just the number that the poster I was replying to used and it was just the return divided by years...If you figure the total return was a compounding annual then it would be a bit less.

The 7% auto loan number was pulled from bankrate.com as the current auto loan rates...lower rates can be obtained throught dealers or credit unions but the point is that paying off almost any debt yeilds the best return on capital based on recent performance...and debt on a depreciating asset is adding cost to loss

Over the last 10 years there have been times where I saw MM rates as high as 4.5 but that wasn't their average, for a while they have been around 2 IRC. I see MM rates from time to time but really dont keep tabs since I really don't care to have money in them....but looking at a few random mm funds on the web put the average 10yr returns in the 3's

 

I certainly can relate to the OP. We have 2 vehicles, one new, one old but both paid for. It's tough to decide to finance a new vehicle given the current uncertainty. That said, we are spending approx. $400/mo in gas for our truck. We have to keep this vehicle to tow our travel trailer but we won't have to use it as a daily driver. The gas savings alone will be more than $200/mo and the 9yo vehicle we are getting rid of is just starting to incur some hefty repair bills.

 

my ***** have been on the line at work the last several months but today I was informed of a good reassignment in the same office I work in with no loss of pay or tenure. I was beginning to wonder if the new MCS was a good idea here in the last week, but now that I have at least a one year reprieve I cant abandon it. hello new MINI I can smell the English Oak already!

 

Have to admit I too am having second thoughts. But as of now I am picking up the car this Saturday. For me, it's not a matter of not being able to afford the vehicle as much as a "what am I doing" moment.

Deep cleansing breaths ...

 

Ditto to that. Picking mine up early next week.

 

I'm not going to lie, I'm seriously reconsidering taking delivery in a month or so. The whole idea of a new car was far from an intelligent financial decision, but that's not why I make decisions. I make them because I want the benefits of the decisions I make, and, admittedly, I often fail to take account of the consequences. But I get by. I'm very good at that. And the MINI will be awesome. I think we too frequently pass up opportunities to breathe life back into our souls, and that's how I view driving both a MINI and my Harley.

I'm not in a career at this point in my life. I have a full time job in a field that I have years of experience in, but I am in graduate school at the same time, and my graduate work has very little connection to my current (para)professional work. My real career trajectory won't begin for another three or so years down the line, but I don't want to be the person who puts off some sort of fulfillment in order to hold out for a later year in a better situation with a more solid base (economically, socially, etc.) underneath me. My life right now is more important that holding out for what my life might be like in a few years. I'll take care of life three years from now when I'm knocking on its door rather than try to anticipate what I'll want and what I'll need ahead of time.

So I plan on going through with this at this point. Because I want to. And because I think, despite whatever financial difficulties it might present, that it is something that will give me a bit more of a spark that I might be able to turn into a fire that will remind me of what life should be.

 

I would worry a lot more about having to sell a home and the equity lost in the last 2 years than I would be worried about a car purchase. If you are really tight and do not have some sort of reserves then I would worry. If you are stressed about housing expenses and then a new car payment on top of that then maybe a new car is not right with you.

If you credit is above 720, you will not have an issue getting a loan, the rate might be moving up. But with most things either you can or can not afford it. If you are unsure talk to a accountant.

The only thing I did not want to is have two car payments, so I am paying off our 2004 Honda Pilot and the payment on the Clubman S will be less. Luckily for us we pulled some cash out of the stock market so we had 25% for a down and money to pay off the loan on the Honda. My wife (HTClubman) and I work for the same company about 10 buildings apart so we car pool to work. So we will be able to save some every month on the gas from the Pilot. Our second car was a 1999 Honda Accord EX 5 speed manual, which for the last 3 years was being driven 3500 miles a year, we owned it since 2001 (I posted it on Craigslist in LA and had 60 calls in 24 hours, they guy overpaid us 1k for the car, we believe in karma so we called him and gave him the 1k back).

For us the Clubman is worth it, we own our cars a long time, and plan on having the Clubman and our Pilot for quite a while.

Good luck, I know these can be trying times with the stock market tanking banks dropping like flies. We are in the stock market for the long haul. I was worried about a drop a few months ago, so I just sold off some stocks we were doing well in and have been bottom feeding on stocks that crashed because of the crisis. This is a good time if you have cash to also invest in the stock market, you can use it to help offset loses IMHO.

I believe in times like these just try to build up cash reserves if you can.

 

A+

 

There are most likely a lot more people with the same thoughts even if they won't openly admit it. I know I have the same concerns and if anybody isn't concerned they should be. If people like us (good credit, good jobs, etc) stop spending, then the ripple effect is that our good jobs go away while unemployment sky rockets. Right now a car payment is no big deal, but if you get laid off it becomes areally big deal.

 

He who dies with the most toys wins

 

I would go ahead with the purchase of your new MINI and if all else fails tell the government that you need 700 billion to help bail out your MINI friends (us).

After all, if this bail out is good for the rich it should be good for us too.

 

A mini on some level is a luxury purchase, if you just needed a cheap set of wheels you can get a Civic. But the Mini has the best bang for your buck and great resell. We have some friends who purchased a loaded Prius with the bells and whistles for 35k, they are upside down in their house that they paid 900k and is most likely worth around 690k. I thought for them the decision was not the best, but they both earn over 100k, and wanted something with better mileage.

I personally could not drive a Prius, way too slow and ugly for me. It has that look that screams "Hey really I am for the environment, and I spent all this money to show it". The look of something like the Prius makes me think of giving up any coolness that was left in the person who purchased it. Enough of my rant. Help you local BMW/Mini dealer out and purchase one.

 

With the economic slowdown, I'm sure that even MINI sales will be impacted. Perhaps in the near future, cutting a deal on a MINI won't be so difficult. I suspect that MINI sales will slow and dealer inventory will start to increase.

 

WOW!!! Reading all the other forums, I thought that I was alone in wondering about the economics of purchasing a new car now. I was shopping 2 years ago and had my car picked out but the company I worked at for 10 years went belly up. I held onto my '96 Saturn at that point and was thankful that I had not made a move. When all of the main seals blew out and I started hemorrhaging oil, I took it as an omen that I should be looking for another car. The financial crunch has me worried but so do the gas prices. I can borrow a 1999 Buick Century for now but . . . it's a 1999 Buick Century. Gas mileage is HORRIBLE. (And it's a 1999 BUICK CENTURY!!!) I spent months researching cars, looking at resale values, mpg, etc. I created spreadsheet after spreadsheet of financial data including monthly payments, gas usage, etc., and everything tells me that I should buy a motorcycle or bicycle. NY in the winter is not conducive to any type of cycle travel so I needed a car with great gas mileage and phenomenal resale value. HELLO MINI!!! I also managed to lock in my car loan at 4.99% so that is one less crunch to worry about. Basically, approach your decision with as little emotion as possible (except for that &$%&#* 1999 BUICK CENTURY!!!!), run the numbers (car payments, higher insurance, gas savings, etc.), and then see where you land. If it's "no" now, it will be "yes" sometime in the future.

 

My story is all too similar to others. I had a Chevrolet Truck with was nearing the magical 60K mark where maintenance starts to be a concern. I had been in 2 accidents with the truck, and had after fighting with insurance companies for close to 9 months, I got everything paid for, and back into good working order. This was all going on while the cost of a tak of gas had soared to over $75!!! After 3 months of research, test drives, and drooling, in walks Mini of Dallas, with a MORE than generous offer to buy my truck on-the-spot. I've been car-less ever since, waiting delivery of my Clubbie.

For me, living in the DFW Metroplex, highway driving is 90% of my commute. The Clubbie will save me close to $200 a month just in gas, and my auto insurance will remain constant. There's no real negatives here.

As was said above, timing is everything, and the majority of MINI buyers seem to take lots of time before making their choice. Second guessing is only normal before making any kind of sizable decision.

Only you know what you WANT.
Only you know what you NEED.
Only you know what you CAN afford.

 

I have been looking to replace my almost 10yo SUV for 2.5 years. The Civic was my personal "gold standard" for comparison. I kept going back to it as I checked/tested/drove every new, fuel efficient car that entered the market. I tired of waiting for new hybrids and trying to justify their cost.

The price difference between a Civic (LX w/auto) and the MC (non-s, built just the way I wanted it) was $2K. Once I factored in resale value, premium gas, maintenance, etc that margin dwindled a bit.

As much as I liked the Civic's reliability and fuel efficiency, I was so uninspired about owning one that I could not pull the trigger....in 2.5 years!

Enter the MINI. Really everything I wanted in a vehicle and I don't have to sacrifice performance and handling for fuel efficiency.

Since I changed my mind and opted for an MCS w/options (yes, the configurator is more addictive than crack....as are these forums) my cost comparison (Civic-vs-MC) is no longer valid. More like MCS-vs-Accord....but I never wanted one of those!

 

Honda was my gold standard, too. I do not like the re-designed Civic but I LOVED the new two-door Accord. When I compared the gas mileage and the price, Honda was officially off my list.