If so, what are the going interest rates. I'm still trying to decide how I want to pay for mine. My wife suggested dimes, since they are the smallest coin, but I don't have enough of them.

 

I'm buying my Clubman with a credit card courtesy check. Chase Bank offered me a 3.99% rate until paid off. I paid off the small account balance I had, and then I wrote a courtesy check for $19500 and am paying the rest with the sale of my current vehicle. 3.99% is 1/2 the best new car loan I could find.

 

My dealer quoted 6.8%-- my bank offered me 4.99%.. gee wonder which one I took...

 

I used them and I got 6.6% rate which was competitive with Credit Unions and Banks here.

 

Wow, that's kind of steep. Our going rates are 5% to 5.25%. Unless I come into some major fortune or find some unbelievably low interest rate, I'm going to use the ATM machine built right into my house to buy the car.

 

Except for the large down payment I've been working on for two years, I'm paying off the balance with home equity credit line. The interest is low and it is deductible. I figured that is better than car loan interest.

 

I got 4.74% from my credit union. I had to work it a little to get them to beat the best rate I could get. I had the CU promising to finance me at 5% when I walked into the dealership, but MINI/BMW Financial unknowingly helped me with that when they tried to get my business by matching the rate I TOLD them i was getting. (that's right, no documentation needed to get that offer.) I took that rate match back to the credit union and got it lowered again. The CU says it will beat your best offer by .25%, but 4.75 is their floor rate. It's the lowest I could find anywhere. My HELOC rate is too high to add my car on to.

 

I got 5.99 with Mini/BMW. I know I could have gotten better but we will pay it off in about 2 years anyway. USAA, our insurer and bank, says they may give us a better rate but right now, my VIN doesn't even register in their computers so they can't even give me an insurance rate until tomorrow.

 

We are financing ours through MINI financial services also. Since we have not yet taken delivery, I don't have the final interest rate but I suspect it will be in the 5.99% range. We are putting down around $13,000 cash and financing the remaining balance with MINI Financial on a 30-36 month loan. Plus, I get a rebate from my MINI Platinum Visa card. I have around 55K points accrued and that translates to $550 in total rebate just for getting the financing through BMW! I don't like long term loan commitments. I tend to pay off my vehicles within 1-3 years, get the title free and clear and enjoy them for 7-10 years of payment free driving.

 

if you apply on line and set up for automatic payments, 48 and 60 month usaa plans are now @ 4.99%

 

I always try to negotiate with the dealer first and then try and beat it, then go back to get dealer to match. My dealer called and said 5.39% and I thought that was good. Now from what I am reading maybe I can get it lower?

 

Nice!

 

I called Chase (we've used them on the last 3 cars) and they said they'll only do a loan based on a percentage of the base model price. Anybody know anything about that? We're also trying BMW finance and Bank of America. I hate Bank of America. I'm going to start hunting for dimes.

 

Don't rule out your local credit unions. I've financed several cars that way.

 

pardon my ignorance, but do you have to be a member of a credit union to apply for a car loan?

 

as long as yo know a member, he/she can sponsor you and you'll have an account with a minimal deposit. It's usually uder 25 bucks.

 

There's a thread about Pentagon Federal Credit Union-- they were offering great rates and it was like $25 to join. Might look into that.

If you have decent credit, you should be able to do much better than the MINI financing.

Edit: Here's the thread https://www.northamericanmotoring.co...light=Pentagon

 

A good website for comparing auto loan rates is bankrate.com. It has a number of ways to search for loans, and also information on current loan percentage averages. Unless there's a special MINI finance incentive on the Clubman (not likely this close to introduction), you can probably do better elsewhere.

 

You become a member when you apply for the loan. Each credit union has specific criteria you need to meet to get membership. For instance, you have to live or work in a certain town or county. A couple of companies I've worked for have their own credit unions for employees and family members only. I once belonged to a credit union that required I went to a certain church, or was related to someone who went to a certain church.

You tend to get more of a personal touch at a credit union than at a bank, at least thats how it is with the smaller ones. Many credit unions seem to have grown over the past few years and broadened their membership criteria.

 

I highly recommend www.capitaloneautofinance.com I financed my first 3 MINIs with them. 15 minute online approvals, blank check on your mailbox within 2 business days and a total pleasure to deal with. Their rates are extremely competitive. Check 'em out.

 

Ok, So I applied for pre-approval from capital one because I was curious about the rate I could get...I get an email 5 minutes later telling me a blank check is in the mail. I did some digging on the site to find out the rate that this Laon for 25,000 was at and it is at 16.45%.

My check my credit score, and it is 680. I have a few minro blemishes, but overall, very good credit. I have had a Loan with Chrysler financial for 31,000 over the last three years, and I have 13,500 outstanding on that. Are they factoring this in? That I already have a car loan out there, because I will certainly be trading it in and paying it off if I decide to buy a clubman. But at 16.45? no thanks.

 

I have been approved through them, but they would not finance the entire amount (about $4300 short). They said they would only finance the colateral value, so I guess adding on the extras hurt the finanaced amout since they don't add value according to the lender.

 

As of this morning, we have received bids from about 4-6 financing locations, and none of them are really feasible or reasonable (will only finance base model, noncompetitive interest rates, only offer decent rates to credit scores over 700, etc.)...the best one at this point has been BMW financing at 6.3%. We have a friend who's a BMW finance director in California...he's looking around for us, and I'll report back if he finds a backdoor into anything useful. Otherwise, it's BMW dollars for us.

 

Finance companies like Capital One are really not in the traditional auto loan business. Their business model is based on providing credit card consolidation loans to people with marginal credit and few choices. To that group 17% interest is much better than the 30% they are currently paying.While Capital would be happy to loan you the money for your car, the parameters of the loan will remain within their standard programs, meaning high interest rates.

A credit rating of 680 will likely exclude you from the "highly qualified buyer" programs out there, but it certainly also leaves you way above problem credit people.

The problem is we have ordinary people trying to do an ordinary thing - buying a car - in an extraordinary credit environment. Therefore, don't be surprised if you read comments that are all over the board. Where you live, what you buy, how much you owe, etc. are often critical factors in what you find.

Some things to consider.

Auto Manufacturer Loans: These are often attractive to top credit rated folks and less attractive to lower rated people, sometimes lots less attractive. Before you lock yourself on that path, make sure you are getting an interest rate quote AFTER they have run the credit check. Otherwise, you may find the actual rate you will pay is several points higher.

Home Equity Loans: If you live in or near one of the areas of the country that is hard hit with foreclosures, you may find you need 40-50% equity in your house before any one will even think about giving you an equity loan. Even if you currently have a credit line against your house, get the money BEFORE you place your order. It is not uncommon for banks to reduce credit lines or eliminate them all together when people move to access the money Your home as an ATM machine is a concept that is quickly fading away.

Traditional Bank Auto Loans: Still available and especially if you have a long standing relationship with a small local bank, it may be your best option. You might not get the best rate available anywhere, but you likely will get a decent deal. Just expect to put down a larger downpayment than you did at your last car purchase.

Credit Unions: Sometimes higher, sometimes lower, but usually they will have money available for a member in good standing. Probably would require a lower down payment vs. a standard bank loan.

401K Loan: Risky, but likely the lowest interest rate you will find anywhere, plus you pay it back to yourself, including the interest. But, if you leave or lose your job, you will need to repay the loan in total or pay taxes and penalties on the remaining balance come tax time. Most financial people would shoot me for even suggesting a 401K loan, but they have have their place in the options list.

Private loans: Believe it or not, there is a thriving and growing subculture out there of private loans between people that need money and people that are looking for a better return than their 4% savings account. You can find these opportunities via the internet, but expect to demonstrate a spotless credit record for most of these investors.

In summary, the rules are changing. What you knew to be true last month may no longer be true today. Look around everywhere and be prepared to act fast. My recommendation is to lock up your loan as fast as possible, and if necessary, just dump the loan money in a savings account until your Mini lands at your dealer.

 

There are many credit unions you can join without much "association." I'm lucky enough to be a member of a Fireman's CU, because that's where by dad worked, and I got my loan through USC, because I'm a student there. (no, I'm not getting my BA!) USC said they would beat any rate I could get by .25%, and take another .25 percent off if you did automatic withdrawal. I set up an account just so I could open the loan. All I have to do now is make sure I put enough in the account each month... easy!