Forbes: MINI Smarter Than A Smart Car
It’s not news to us that MINI’s have great resale value. In this recent article from Forbes, they mention the MINI specifically as a car that retains its worth far better than average.
Sports cars, crossovers and SUVs typically retain roughly 40% of their original purchase price after five years of ownership. One example renowned for holding resale value: the Mini Cooper, which retains 52% of its value after five years.
At the other end of the spectrum, they point to some specific offerings from Smart. How bad does it get? Let’s just say that a few bags of Trader Joe’s in the trunk might all but double the resale value. Okay, it’s not that bad, but it’s pretty bad.
…you should be wary of highly customizable vehicles like Smart’s tiny Fortwo Cabriolet: Sure, it’s an inexpensive purchase, costing just $21,635 for a Brabus cabriolet base model. But the car quickly loses 63% of its value in 24 months, and retains just 17% of its initial worth after five years. The Hello Kitty wrap offered as a customized option will do nothing to help bolster resale value.
Let’s do that math all the way. According to Forbes, a 2006 model of the Smart they mention would be worth a mere $3,678 today. An ’06 MINI spec’d at the same price would still be worth $11,250. Compare that further to MINI models like the limited edition ’06 GP, which according to Kelly Blue Book, are retaining as much as 80% of their value five years on. Both the Smart and the GP are extreme examples, but no matter how you slice it, the MINI can be a great value in the long run.
<p>That’s interesting to see how market dynamics differ from one country to another. For instance in France, Smart cars have a high resell value but it is still a crappy vehicle anyway.</p>
<p>I consider myself to be fiscally conservative, but I would NEVER buy a car for resale value. It’s not an investment, it’s an expense. I can’t imagine driving any car for 60 months or more and worrying the whole time about how much I’ll get for it when I sell it. Unless I’m involved in an accident and need to get insurance money, I could care less about the resale value of any car I own.</p>
<p>Depreciation is the largest expense you have….I would much rather lose 10k than 20k in “expenses”.</p>
<p>Its a factor not the reason to buy a certain car…
Its why I’m very very happy that I did not buy any of the other cars I was cross-shopping with the MINI in 03. The fact that the car has retained value well also means that I am more likely to buy another MINI.</p>
<p>Zimbrick MINI in Madison is willing to give me approximately $18,000 for my ’08 fully tricked out Sidewalk Edition for which I originally paid $32,400 – Not a good deal.</p>
<p>Michael,</p>
<p>The numbers are based on Kelly Blue Book values for retail or private sale, rather than trade-in. Your results may vary.</p>
<p>@ Michael</p>
<p>’08 is still pretty early for a trade-in. If you’re jumping ship that early may I suggest you lease next go-around.
And “tricked out” usually equates to more “stuff” a dealership has to take off and part out before they can sell it again.
Trade-in value is also cross referenced with current auction prices and availability.</p>
<p>Last time I was in the United Republic of Europe (specifically Rome) these Schmart Cars were EVERWHERE! I had never seen one and while not for me I still found them asthetically pleasing and quite sensible for the bizarre lack of parking there along with the price of gas.</p>
<p>Then I heard they suck.</p>
<p>To put it simply, MIchael, there is nothing fair about car depreciation. I tried to trade in my VW for an MCS a few years back, and the MINI dealer would only give me half of the VW’s purchase price (it was barely a year old, bought new, at that point). My father traded in his ’08 MCS last year for about the same numbers you posted, if that helps… no one really wins (well, save for the car dealers in resale).</p>
<p>There’s very little that’s smart about a Smart car.</p>
<p>They get poor gas mileage for their size, their transmission is funky (they have to teach you how to use it before a test drive), there’s a 1-year waiting list (or was back when I was car shopping), and they have a tiny 2 year warranty.</p>
<p>The only reason I can see for any sane person buying one is the small parking footprint benefit in a big city.</p>
<p>No doubt the MINI has excellent resale value, but it is poor journalism on MotoringFile’s part to quote the complete fabrications in the Forbes fluff piece.</p>
<p>Go to KBB.com yourself; the 2007 S-class (current model) retains 48% (trade-in, no options, aveage miles), which is in-line with what the writer considers “typical”.</p>
<p>Smart didn’t exist in the US before 2008, and the Brabus Cabriolet used as an example was a new model for 2010. Hardly enough data to make five year projections, especially when KBB shows it retains 71% after one year (also trade-in, no options, average miles), which is no worse than average.</p>
<p>I sold my ’03 Cooper for $2500 more than I bought it for new, so I now think about resale when I purchase a car.</p>
<p>I still can’t get past the false advertising.</p>
<p>2010 ‘Smart’ Car has a 2 Year/24k warranty?!?!?</p>
<p>Smart for who?</p>
<p>Granted, this story was about ownership/resale over 5 years, fine.</p>
<p>What car worth their salt has a 2 year warranty?!?</p>
<p>I recently bought a 2010 MCS and absolutely love it! Right now, I am having a hard time trying to sell my 2006 Cooper (which I also love but must sell). I think if I was a dealer and could finance, maybe I would have sold it already. The ad in the local newspaper yielded NO phone calls after three weeks. Same for AutoTrader.com and driving around town with a “for sale” sign. You decide about retained value: Mini of Birmingham appraisal $10K, KBB trade in $12K (NADA $12K), KBB private $15K, KBB retail $17K (NADA $15K), KBB certified $18, 2006 MSRP $20,700, my price $14,980 (42K miles).</p>
<p>I suppose I can ask whatever I think is a fair market value but until I get some offers, none of that matters including retained value. Dealers can make more from trade-ins (~$5K) than new cars (~$2.5K).</p>
<p>Just rented a Brabus Smart in SF from Hertz for a week and put >900 miles on it. It actually was quite nice and the quality of the interior surpassed my 08 MCS Works.
The lack of a turbo on the US Brabus and the horrid transmission do negate any thoughts of buying one (as does the fact that Penske is not known for being there for the long haul.
Resale of anything these days is poor.</p>
<p>I just paid off my 2006 MC today and while I’m thankful to not have a car payment anymore on a four year old car with only 37,000 miles, I would never think in terms of it being an investment rather than an expense. It’s great MINIs have fantastic resale value, but come two or three years down the line, when I will probably be getting another MINI, I won’t realistically be expecting a lot in trade-in. I guess every bit helps though!</p>
<p>The smart car was pre launched in consignments in 2006, i remember when the basic smart was sold through certain dealerships that sold electric cars. They ranged from 25,000 to 30,000 an very basic. Thats quite a mark up. I think at that time only 5-6 dealerships sold them , one was in PA and they displayed at the PVGP in 2005, 2006.
So the data would be skewed in adding pre launch Smart Cars.</p>
<p>Not true; any smart vehicles sold in the US prior to 2008 were previous-generation grey-market imports converted to US-specs by private companies. You will not find any data on KBB.com for them; they are completely different than the current-generation, factory-built and -supported US vehicles.</p>
<p>Comedic effect: I was watching an old Peter Sellers Pink Panther movie Saturday and realized he was driving a classic MINI. The new Steve Martin Pink Panther features the Smart Car. I suppose the MINI has grown up.</p>
<p>MINI owners should realize that a car after 4 or 5 five years have lost much of their value. I’m not sure where the sweet spot is but I would guess three or four years for highest retained percentage of price. The real value of the vehicle is affected by lease returns as well as a host of other factors.</p>
<p>This is a no brainer. When it comes to resale value, there are few, if any cars better than a MINI. I bought an 06 Cooper for $20k and sold it three years later for $16k. Only a 20% drop in three years?! That’s pretty remarkable.</p>
<p>Jack — see what Edmunds tells you for pricing. It seems to be more accurate, in my experience.</p>