The girlfriend has a 2010 Clubman S she wants get out of. She's just not as into the car as she SHOULD BE.

I, however, love the thing.

She wants to trade it in on a Lexus and is willing to take the loss of about $7k out of pocket. It doesn't kill the deal on the newer Lexus she is looking at, as she's also trading her old Lexus (she kept her RX when she got the Clubman,) so that offsets the loss on the MINI trade in.

So here's my issue. I love the MINI. I'm considering taking over the MINI payments so she can trade in her Lexus on the newer Lexus. However, she put nothing down on the MINI, so she owes about $28k on it (she got it new in May 2010.)

Do I take over the payments and keep her car, or do I let it go, and pick up someone elses used MINI sometime in the future? I've been with this MINI since she picked it up, and am attached to it. But does the financial aspect of it justify me keeping it?

 

Step away from the car!

Find a large bucket of ice-water, throw it in yer face.

You can trot down to the MINI dealer and get yer very own for less!

A new 2011 Clubman S can be nicely equipped for 28K; with dealer discounting, you could get even more options for the same money.



Edit: not to mention that the phrase "take over payments" is fraught with peril!

 

Don't do it! Mr Surly is right for $28K you can get a new '11 the way you want it.

 

Yeah, unless she's going to cut you a good deal - don't do it. Tell her you can go buy the exact same brand new for what's left on her loan.

And don't do it to be nice. You're not married, she's your girlfriend. I'd hate to see her unload the car on you and then ditch you.

 

LOL!!!

True... but she wouldn't feel too bad about that, since she thinks I love the car more than I love her.
















I'm not denying it, either.

 

You all can't advise him on whether the car is a good deal or not, since you have no idea of the equipment level or mods that have been done to the car. Also, the OP does not indicate whether he can afford a new one or not.

That said, if the financing terms are better than what you can get on a new one, or if the car is well optioned up it could be a good deal......also is that $28K the total of payments or the payoff balance owed?

Knowing the car well counts for something too, as compared to taking pot luck on something used later on.

However, be aware that taking over payments can be difficult, the lender generally wants the new borrower to be at least as credit worthy as the original - sometimes better, and some lenders do not let the original borrower off the hook on a take over payments deal, but hold them in reserve in case you welsch...that could possibly affect her ability to buy the Lexus.

Really, the best way to do this is to go to the dealer with her and offer to buy the car for whatever they're going to take it in trade for, then get your own financing and buy the car outright. That way they handle all the payoffs and title work, and you and she keep your financial arrangements at "arms length".

Either that or go buy a 2011 or the used one of your choice at the dealer.

 

I would offer that there are SUPPOSEDLY a number of improvements in the 2011s that solve issues the 2010s and below were experiencing, such as the HPFP thing, torque steer, etc. I have no frame af reference, only owning an 06 and now a 2011 Clubman S, but I can tell you the car is reeeeallllllly nice so far.

 

Don't forget the relationship angle.
You the OP does not say if this is a serious GF or just the right now GF.
Financial deals tend to muck up relationships, even marriages.

 

not to mention that MINI offers 0.9% financing on new 2011

 

Something like this sounds like a good idea.

Find out how much her car is worth.
Find out how much it'd cost to get the same/similar NEW from the dealer.
Is this car the one you would have ordered if you were buying new? How far off is it, are you OK with the differences?

 

Dude get a grip . Go for a new Cooper S with sun roof any color . Then trade in the girlfriend for another girl = thats easy ! Chicks dig Coopers = they think they are cute = any age chick . With gas prices going up = go for a Just a Cooper SAVE ON GAS ! GOOD LUCK DUDE
El Tiger Lighting Blue Cooper

 

Dave, I understand your point but will argue with it. I went through the configurator and loaded up a Clubman S (Chili Red just so ya know) with chrome trim outside, chrome trim inside, Bonnet stripes, white signals, rear spoiler, roof rails, cold weather pkg, ctr arm rest, punch leather interior, leather wheel, Sport pkg, Infinite stream wheels, and its at 29750.
While its true that the OPs car could be loaded with JCW goodies but, failing that, its virtually impossible to consider a 2010 a good deal at 28.

 

A sunroof, metallic paint and an automatic would add almost $3K to that sticker, let alone anything else.....

However since the price really didn't go up on the '11s over the '10s, there would not be a lot of difference in sticker. The problem this car has is that she didn't put anything down on it and she's only 6-8 months into the loan. That's why I suggested that if he wants it he should offer to buy it for whatever the Lexus dealer will take it in trade for - that will be it's true market value, and it will be less than $28K

I doubt the OP can afford to buy this or another new car - since he was hoping to just take over the payments.

 

Interesting that you assume that. The reason I would want to just take over the payments is because:

1. She has no equity in the car, so she doesn't lose anything by just having me pay the payments.

2. Were I to refi the car in my name I'd lose the sweet finance rate that she currently has.

Were I to take over her payments I'd more than likely fiance her next Lexus in my name, since my credit union has decent rates. That would also put us more in an equal stance, liability-wise.


I love the car, other than it's an automatic... but I actually have gotten used to using the paddles, so it's not a big deal at all.

I COULD just buy another Clubman S for the same money, but my goal isn't to just get into a MINI, but to also help her out. I put this question to the forum members to ensure that I wasn't being TOO stupid or letting my relationship with her cloud my judgement too much.

 

If you love the car and can afford it I'd say buy it....

 

OK, I'll give this a shot...

Very noble, Sir. Laudable. Gracious. Not necessarily brilliant, but purposeful.
REALITY CHECK BTW: she's thoroughly upside-down in the car, not simply lacking equity.

No doubt possible, but some banks are competing more these days, suggest you call around. My CU is offering 3.9 on used cars just now.


Obviously, to someone outside your relationship this would seem absurd/naive/ill-advised ("what a tangled web..." comes to mind) but withIN the relationship is where you'll have to judge this arrangement. A related point is that having the Cooper remain as her obligation may limit her ability to get financing, forcing her to either dump the obligation (trade or sell to you) OR have you buy her new car as you've proposed here.

a Side Note:"more than likely fiance her next Lexus" was that a Freudian slip?





I feel confident that you could buy a new one for the same money (at 0.9%!). This can be quantified...I dont know the real numbers but you're essentially offering to pay new car money for a year-old used car. I'm guessing that after running the real numbers that you'll find that you're offering to 'eat' five grand. Ask the dealer to give you trade value.

Yes, your judgment is unarguably being clouded. But is it 'too much'? Maybe its perfectly rational in light of some other goals, I have no way of knowing.

I further understand your willingness to help her out. No way WE can judge this for you, but you can better decide after running those real numbers.
You know the old adage that "you lose X thousands of dollars when you sign that paper"? that's the money that you are offering to shelter her from losing. Your willingness to indemnify her against indecision is certainly wonderful for her, but maybe SHE needs a reality check,eh?
Good luck with your decision!

As a bit of a traditionalist, I would not advise the tangled-web scenario, but that's just me.

 

A couple of other points(!)

She GAINS because if she traded it in, the new dealer would ADD a bunch of dollars to the new car principal to cover her shortfall in trade-in value vs. pay off. If she sold it outright, she'd have to pay it down to sell. If you make the payments, you accept the shortfall.

To refinance you would likely find that you'd have to come up with a down payment as your CU might not be willing to finance the full pay off given whatever the book trade-in value is. Be sure the CU is quoting you their Used Car rate.

You just tilted the equation $1300 MORE toward buying a new one (6- speed manual)

Good Luck!

 

Crap. I did type "fiance," didn't I. Ugh.

The rate she got has is 1.9%, but that's certainly not as good as the current .9%.

I understand that it's not the most brilliant financial more on my part, as I know I certainly could get a MINI for less. After reading all the responses, I've refined how I look at the scenerio.

I think at this point I've realized that it's not what's smartest for ME to do, but what's smartest for US to do. In the end, that's how I'm really looking at it now.

She's ready to just dump the car into the deal on the Lexus. I think that's crazy, since they AREN'T adding any $$$ to the value of the new car to cover, it's all coming from the equity in her other trade-in, the Lexus RX-330 she also currently owns.

I think she (we) should just keep the MINI and suck it up. She should have realized what I already knew... she was going to be upside down for a long while in it because she didn't put any cash down. That's the price she (we) paid by deciding to go with the MINI Select program.

Thanks for the insight!

 

I do understand your position; but I would still differ with your "smartest for US to do" thinking. Taking (volunteering for) a large financial hit just because she's "not into" the Cooper is not defensible, much less sensible.


She's ready (if I can make some assumptions) to dump two cars into the mix to come out with a Lexus; One car has substantial equity, the other is upside-down. They sort of cancel each other out but that doesn't change the 'somethin' fer nuthin' equation. She's paying the 7 grand in RX instead of dollars. She's got her blinders on and the new-Lexus-aroma in her head so she'll do it, wash her hands of the MINI and move on. YOU, on the other hand, are aware of the lost (RX) equity and think that maybe the sane approach might be elsewhere. How did I do?


HEAR! HEAR!


A possible option since you have equity in the RX would be to:
1. sell the RX to a private buyer for much more than the dealer was offering; (this is still her money...bear with me here)
2. she uses part of that money to pay down the MINI to real trade-in value so she's not upside-down.
3. YOU get your own financing and buy the MINI, (this is YOUR money) and she's out of the obligation, balloon note is history.
3a. or trade it in on the new MINI of your choice, no equity but no buy-down.
3b. sell the Clubman outright, she keeps any profit. Then buy your own.

4. You've got the car you like for a fair price. SHE has used her money to make the price fair on the MINI and she's probably got a little to help with the Lexus deal which she can now buy WITHOUT any buy-downs.

Another note: Being upside-down has NOTHING to do with the Select program. Not putting any money down is the sole cause.

I'm sorry if I seem hard on ya. You did ask

 

Don't forget that it's impossible to walk out of the dealership without getting hit for at least $600 destination fee, plus whatever warranties and other dealer extras she might have tacked on. Assuming they're reasonable and and can be transferred to you, 28K may not be that bad a deal.

Personally, for that kind of money I'd want a new car set up exactly how I wanted it. But throw a special woman into the mix and that could change. Priorities

 

Go and buy the clubman after she trades it in because you know what they will want for it after the steps mentioned in post 19. Or at least you know what they will give for it.