So I'm wondering if it's just me, but here's the deal:

I bought my 2011 Chili Red MCS with 32,000 miles about 11 months ago as a CPO for about $21,000. I did what research and that seemed right on par, and the fact that it was a CPO got me a much better interest rate on my loan.

Fast forward 11 months, my same MCS with 53,000 miles is now only worth about $14,000??? What happened? Have other people experienced this same dramatic depreciation? I know with the F56 coming out, some drop was to be expected, but this seems a bit dramatic to me. I was considering replacing the MCS, but with this kind of depreciation, I can't do it without taking a big loss...

 

Sell it yourself instead of trading it in. If that price is what you are seeing actual cars sold for, and not trade in price, then it is what it is. But I highly doubt is a real world number. MINI's are about the best brand at holding their value.

 

The $14000 is what I was offerred as a trade in. I'm seeing simiar ones posted on Autotrader for ~$17-19k. I can't sell it myself. I don't have time, and it's too much of a hassle. Plus I don't own it out-right, so there's the title hassle as well....

 

I don't know what state your in but for example in NY on a trade in you also get the benefit of the tax credit on the trade in. In ny that would be another 1200.00 (14,000 x 8.625% ) that would be deducted off the tax you would have paid on the new car.

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Unfortunately Maryland doesn't do the tax credit. So that isn't money I'd get back. The more I think about it, the more I think I'm financially better off keeping the mini for a couple more years. I guess reading the various threads about problems and repair costs has me worried that I'll be spending a ton of money to keep it. I currently need tires and brakes, and then I also need my windshield replaced. I know that stuff counts towards my depreciation but I still wouldn't have expected it to drop as much as it has. I drive about 25k miles a year so I'm going to be way over 100k by the time its paid off, so I just am paranoid about what to expect.

 

You also have to remember that EVERYTHING is negotiable, yes, even the trade in.


You also have to take into account that nobody would probably give you as much as a MINI dealer would for a trade on a new MINI... Most dealers are just going to wholesale your trade in


If you aren't willing to sell it yourself, than you are going to take the hit.

 

I would think if you keep up on the oil changes, look for leaks, and pay attention for odd noises, then there is little to worry about. The 2011 has the updated motor (IIRC) that seems to be more reliable than the earlier version.

I also agree with Richard that a MINI dealer will likely give you more for your trade than another dealer.

Enjoy your MINI. It is higher maintenance than many other cars. If you are loosing sleep over this, then it may be best to trade it in.

Have fun,
Mike

 

It is not so much a depreciation hit you are taking as it is the financial decisions you made. Buying CPO from the dealer = top dollar, trading in = bottom dollar.

 

Deprecation is a ***** for sure.
Ordered the R55fJCW loaded minus the kitchen sink.
Added extended maintence and warranty.
Taxes around $3,000.00 Out the door = $49,984.00
Fast forward exactly 12 months at 1 year check up and I asked about trading into a F56 S.
Was told $28,000.00
Now that's depreciation!

 

I've always had great success with Carmax.

1) 2005 Mazda 3 Hatch (stock) 125k miles. Air bag light lit. Subaru wanted to give me 3k. Carmax 6k
2) 2014 Subaru WRX Sedan 1800 miles. Paid 24,900. Carmax 27k.
YMMV

 

Maryland does have the tax law.
For example:
If you trade the mini in on a vehicle that is $30K, and they give you $14k for the mini, you will be taxed on the $16k difference, not the full $30k. That's what's meant by the tax credit. I only know this because I work at a dealership.

 

27k for a sedan WRX is amazing!

As far as your Mini goes. I'd say putting 21k miles in 11 months may be hurting your depreciation the most. Still, I think you would be able to get at 15k on a trade in considering its CPO. Carmax would be your best bet.

 

Just keep it =) Do your maintnence and take care of her and she will take care of you

 

Also i live in laurel, and have plenty of tools and know how to do most anything on the Mini. I have pulled heads, swap a motor, done a clutch, brake, radiator flush...etc. If you need any help let me know. I dont have any Mini friends here. Laurel mini drivers are stuck up haha

 

Retail value (what you pay when buying a car) and Trade in value (self explainatory) are 2 very different things. Trade in considers what the dealer, on the average, is going to need to spend to get or keep the car at a retail level (being sold with nothing needed, or as little needed as possible). Also have to consider the sales man will need to be paid for his/her time and the Finance Manager also needs to be paid for their time as well. (all the paper signing, warranty, yaddayaddayadda). Thats why you have a trade in valve and retail value.

Plus that big mileage jump is disastrous! That'll kill any car value! Keep the car. You should have the N18 engine, which doesn't have as many issues as the N14.

 

More options/higher MSRP over base price = more depreciation.

Afraid of depreciation? Don't spring for a myriad of options and keep MSRP as close to the base price as possible.

Or... just get the car you want, have fun, and don't mentally invest yourself in worrying about depreciation on an investment that, in the short term, will never accrue value.