MINI $688 monthy installment offer - Any catch?

[Beng2]

I still remember one luxury brand having the "balloon" promotion years back. You pay very low installment for a few years, but will face a big final payment. They would offer to buy back the car at a fixed price or something like that. It effectively meant the buyer was leasing the car. Sigh, no money still want to drive luxury car? Those people deserved the stick up their a$$.

 

How come no one has thought of this scheme I've been thinking about:

- the installment amount rises gradually from 2nd year onwards. Reason: your income will increase, so you can afford to pay more in later years :)

[Notsogoodman]

I still remember one luxury brand having the "balloon" promotion years back. You pay very low installment for a few years, but will face a big final payment. They would offer to buy back the car at a fixed price or something like that. It effectively meant the buyer was leasing the car. Sigh, no money still want to drive luxury car? Those people deserved the stick up their a$$.

 

How come no one has thought of this scheme I've been thinking about:

- the installment amount rises gradually from 2nd year onwards. Reason: your income will increase, so you can afford to pay more in later years :)

 

that's becoz ur thoughts are flawed

 

1. income will increase - is this guaranteed?

2. can afford to pay more - as one "grows up", there are so many other expenses in life; especially with rising cost

3. paying more for an ageing car - meaning as your car gets older and probably needs more wear & tear replacement, u are actually going to pay more?

 

Your idea is pretty similar to the balloon payment or those free/low installment for first 12 months; u will be staring down a negative equity for many years to come.... n paying for huge chunk of unused interest charges to get out