Here is the official press release from MINI USA on the recent strategic resale award that we reported on last week:
>Automotive Lease Guide (ALG) has awarded MINI a top spot in their annual 2006 Residual Value Awards for the fourth year in a row. With the highest projected resale value in the compact car segment, the 2006 MINI Cooper is predicted to retain 62% percent of its value at the end of a 36-month lease according to the ALG November/December 2005 Residuals Percentage Guide.
>”MINI offers and ideal blend of fun, substance and value, making our cars desirable not only for the first owner, but for the second and third as well.” said Jim McDowell, vice president, MINI USA, “This recognition from ALG highlights our strategy to keep MINI sales consistent over the long-term, benefiting MINI owners, whether they choose a new or pre-owned MINI.”
>Residual Value Award winners are selected from over 1,100 vehicles in 13 vehicle segments and are presented annually to those vehicles that retain the greatest forecasted value. MINI’s unique combination of personality, engineering and driving exhilaration were all factors in ALG’s decision.
MINI USA Press
Related:
[ MINI Wins Again With High Residuals ] MotoringFile
When my 36 month lease ends in September 2006, I have to believe that my loaded, cherry, less-than-30k-miles, MCS will be sold off the lot for more than $16,000.00.
These residual numbers are hypothetical at best; like the claimed government annual inflation rate. The numbers are worked to the outcome desired.
Resale value is based on market demand, supply of cars, options, service & reliability, condition of older vehicle, colour, mileage, purchase price, etc.
Someone in love with a liquid yellow convertible with JCW will pay reasonable top dollar(not many available)not just 62%…
It’s true that the actual selling price of a three year old MINI will likely be a lot different than the residual number that is forecast. However, that residual number is used in calculating lease payments, so if the figure is higher, the lease payment will be lower, so a higher residual forecast is good for the lease customer. However, if you plan to buy the vehicle at the end of the lease term, you hope that the real value will be higher than the projected one, since the buyout is also calculated on that forecast figure. Most three year old MINIs around here sell for a lot more than 62% of the original price, and so they are a great buy. Where else can you get such a good deal and have so much fun?
Residual values are just SWAGs made by lenders looking for action in the automotive finance market. In theory, the high residual value, low lease payment concept sounds like a winner. Where the MINI is concerned, the concept fails. This is do, in no small part, to the demand for the cars. When I tried to lease my ’05 MCS, I found lease payments to be ridiculous. In fact, it made much more sense to purchase the vehicle with less than $10.00 per month difference in a lease payment vs. a loan payment. There is no incentive for lenders to make driving a MINI an affordable undertaking. As for projected values of our MINIs three years from now, we will just have to wait and see.
Strategic Resale Versus Non-Strategic Resale???
What is strategic resale????