Hey, we own cars that are best at keeping their value over the first five years of ownership... really!

Sure, at the dealer it sounded like hype, but here's the real, unbiased report from Kelly Blue Book, hot off the presses.

http://www.theautochannel.com/news/2...02/486445.html

 

MINI has been consistently on these lists since it came out.
However due to a lot of factors, mosty the different options each car is built with, your mileage may vary.
I know a lot of people that can attest to that.

 

Cars are not investments. I've learned that over the years. And I plan to drive this one into the ground like most of my past cars. Toyota Celica 168K miles, Honda CRX drove until parts started flying off on the highway, Mazda MX3 176K miles, 2 Mazda pickups, one referred to as the White Trash Truck, enough said...

 

The key to resale value on this type of a car is to go light on options, just get the "must haves" if you are concerned about resale. It is very easy to drive a $22k base price for a Clubman up to $30k... I know a guy that bought a Cooper Clubman last year that cost $37k before tax (yes... a Justacooper, but he got EVERY option and lots of MINI accessories)... guess what surprise he will get in 2-3 years if he tries to trade it in?!

Options do not add much value to a car, but they can make a car easier to sell. So, you have to strike a balance. Just beware that if you start checking off alot of boxes, make sure these are items that you will enjoy while you own the car because you are going to get very little back on that extra expense.

 

^ well said!

in my years of prowling the MINI boards all over the internet and also having sold a MC previously I can tell you that resale value is all over the map.

let's just say that I never came across a thread on this website that had "Holy S*@t, I can't believe how much I sold my MINI for!!!" as a title

 

Don't trade in @ the Mini dealer!

 

Really??? I just picked up my "just a clubman" a few months ago on the Mini select program.... I know I'll have a balloon payment at the end, but I was hoping to trade it in towards a Type S...

Will I not be able to sell my Mini clubman in 5 years for at least $9k?

 

Well here's the key to the options bit: before you by any vehicle, jump on yer favorite book for "book value" and see what's listed as options that are recognized by the industry to create value. Things like navigation, power windows/locks, different types of radios and sunroofs, auto or manual tranny's, even certain types of wheels can all add value to yer vehicle. Trucks even more so. Chrome guage rings, custom bonnet and boot stripes, etc., other things that add value to a sticker price, the auto value guides won't recognize for resale.

Now that you've seen what they DO recognize for value, look and see how MUCH value for resale. $100 for a sunroof that costs $1,000+ at time of purchase isn't exactly "getting yer money's worth" after a year of owning yer vehicle. 10 years later... sure why not.

BTW: apparently just breaking 20k on mine gives my trade-in value a low $22k... even put back to stock. Ouch. So much for their "Let's Motor" motto.

 

That's why I lease my cars!

My last car was a 28 month lease, I was allowed 23k miles and I only drove 14k, and the car was still worth $13,000 less than the residual value when I turned it in (I saw what BMW FS was selling them for at auction).

My current MINI is worth less than the residual value RIGHT NOW, and I still have 14 months on my lease. My estimation tells me that it will be worth about $6,000 less than the residual at the end of the lease.

First thing I do when looking to buy a car is look at the lease programs... what is the rate and what is the residual. If I see an opportunity where the residual is much higher than I expect the car to actually be worth, it makes it a no-brainer. Hasn't failed me yet.

 

You seen the mods on my car??? It's impossible for me to lease! They'd kill me!

 

Unfortunately BMW is not doing this any more. They are out to increase the number of cars purchased vs. leased. They are doing this a number of ways
1. Killing the residuals
2. Making TONS more options priority one options (wait till you see all the stuff that is a priority one option on the 2011 3-series). This will lower the MSRP of all the cars on the dealer lots and make them more affordable.
3. Making great purchase programs and crappy lease programs.

The days of the unbelievable leases are numbered (I'm sure you can still find some, but let's just say they BMW is not interested in losing money on these things any more.)

 

There are a lot of factors to consider when deciding whether to lease or buy. A lease is not always the most economical choice, just as purchasing is not always the most economical choice.

If a manufaturer is subsidizing the lease it may make more sense than purchasing. If a car has a high residual value (real or artifically inflated by the manufacturer) it may also be better to lease.

Sometimes the best deal is on the purchase of a fairly new car, only a year or two old. The high first-year depreciation has already been taken, and if you keep it for a few years and sell before it's too old you can do fairly well.

I bought a year-old '02 BMW 325 Wagon for $10k off sticker, drove it for four years, and sold it for $10k less than I paid. Total monthly cost was $208.00 Try leasing one for that. I've also taken a bath on purchased cars (don't ask), so the real answer is, it depends...

 

The smart way to buy a mini is no option model of choice with a 0.9 or 1.9 apr loan.

Having worked in automotive retail for the past 32 years my observation is that European cars tend to have the worst resale value and since the late 2007 auto meltdown Mini auction and resale values have plummeted .