Man... starting to toy around with the thought of moving out of a MINI for a while. Getting a shock at just how much value my F56 S has lost in 2 years. I didn't think I'd take a 50% depreciation in 2 years.

 

The residual for leased MINI after 3 years is 65%.
50% after 2 years seems too steep.

 

Is 50% the wholesale price being offered to you by dealers for them to buy the car from you or are you looking at KBB, etc?

 

Several items, all of which you probably know...

The depreciation decay rate is highest the newer the car.

The dealer (any dealer) will always low ball you on a trade or a straight up sale.

Guides are useful but in the end useless as the only thing that matters is what a willing buyer will pay at the time of sale to a seller willing to sell on that day at that price.

Whatever hit you take is the price you are going to pay for wanting to move to something else for whatever reason.

While I don't know what value my F56 will hold when I go to sell it, I do know that I sold my 5 year 8 month old R56 in two years ago for 45% of MSRP and 46.8% of what I actually had paid for the car -- I possibly could have sold for $500 to $1000 more as I purposefully priced below other Craiglist asks and then said "no negotiation, take it or leave it" and had it sold in five days (I was happy enough with sell price as it was 4K above what dealer offered in trade, and 2.5K above CarMax offer to buy).

 

In 2014, dealer trade-in of 2007 MCS, paid $30k new. Got $7500. Lost 75% of value in 7 years. Probably could've got closer to $10k if I sold it myself. Only 70k miles. But there was stuff that needed fixing too.

 

Buying a new car is one of the worst investments you will make (unless you buy a Ferrari).

 

It isn't an investment usually, it's transportation. And a 50% hit has no meaning if you are not talking about mileage and condition of car. It loses a lot of value the minute you sign the papers while the finance people are trying to pick your pocket with add ons.

 

Perfectly said.

Especially this

 

This depends on how you look at Return on Investment. Think of all the babes that will flock to you if you own a Ferrari.

 

When I asked the dealer what they'd offer me in an outright sale I was offered $12k on a $24k car bought 2 years ago. So yeah, I still own it. It hard to sell a new car private party too, not too many people looking for used cars in that price range.

 

I'll tell you a used car that sells high: Toyota FJ. My brother paid $32k for a 2012 that sold new for $38k. He had trouble finding one to buy in Denver.

 

If you worry about depreciation, you really have no business buying a new car. Most people buy a new car because they love the brand and prefer to - for maybe once or twice in their lifetime - actually build the car they really want and own it for as long as they really want!!....depreciation wasn't even on my radar when I ordered my JCW last year, and I'd encourage anyone who worries about this issue to just "always buy used"! I've had many wonderful used cars over the years, but sometimes it's nice to treat yourself to something that "only you spec and own"! Life is short, we are all "depreciating!

 

I've purchased 4 used cars and 2 cars new (1 being the f56 I'm currently waiting on) but I always figured the main draw of buying new is getting the warranty. Not being mechanically inclined I was always afraid of buying a used car, then needing to dump money into from the get go.

For me, the amazing amount of customization possibilities with a Mini and the peace of mind of the warranty makes buying new worth it. If you're trading in cars every few years then leasing would probably be a better way to go.

I plan to keep mine for 7-8 years and then sell and upgrade to a newer one. From what I've seen Minis hold their value well in that time frame.

 

My 2010 4Runner was purchased new for $32k and sold 4 yrs and 38k miles later for $27,500. Hopefully my wife gets 11 years out of her Clubman like she has her R53.

 

Personally, for me leasing is the smartest option. You are paying next to nothing for interest on a depreciating asset. A great majority of cars sold today won't be treated as any kind of collectors item, so for me, leasing makes the most sense. I do put around 13-15k a year on a car, just due to my daily commute, so this falls within a good leasing parameter. Plus, if I love this car by the end of the lease, I have the option to purchase it. If not, I hand it back in and get another car.

Whatever floats your boat!

 

Actually I'd say the fastest depreciating investment is probably toilet paper. Most people won't give you a penny for that even if it's only lightly used.

 

"Bout sums it up.....Well said!

 

Most Toyota's retain their value fairly well.

 

kbb says I'm at 20k after 2 years which is a 14k hit on my build. Oh well, not really planning to sell it anytime soon.

 

Purchased a MCS convertible new last August, thoroughly enjoy it, used as a summer car. Thought I would trade it and order a JCW convertible. Dealer offered a trade price that was 60% of retail, 40% depreciation the car is 8 months old and had 4,000 miles. I do realize that car do depreciate but I felt the was excessive a 2015 with 4,000 miles. Needless to say I will not be ordering a new one or possible another Mini.

 

my evo's holding value nicely lol. rarity plays a big factor. minis are all over the place

 

Well stated, that's why I bought an 10 month old '15 MCS for $24.5k with 7k miles last August from an Audi dealer. Original sticker price with all the addons was just over $33k.

 

some deals are just too sweet to pass up. nice grab DiGiPiMP!!

 

Early production cars of a new model/generation usually take a big hit $$ wise....
And the 2014 cars have some extra baggage....

 

Knowing what I do to my new cars.... I cannot buy used fun cars.