Witnessing the Rising Value of Small Cars Firsthand
I just posted about how I witnessed the decline of my truck’s value firsthand, but now I’ll put a positive spin on things. Almost a year ago, we bought a used 2005 MINI Cooper. This was just after ridding ourselves of a crappy 2005 Chevrolet Malibu that we paid WAYYY too much for, and we weren’t planning on buying any car for another year until we saved up enough to pay cash. But we saw the exact car (color, options, etc.) that Stacie wanted and bought it.
We paid $17,600 for the MINI in September 2007 (plus tax, tags, title, etc.).
On July 1st of this year, the MINI was valued at $16,900 on Edmunds’ True Market Value. As of today, the MINI is valued at $17,200. So while the truck lost $900 in value, the MINI gained $300 and is close to the price we originally paid for it.
I believe the increase in value of the MINI is twofold:
1. Of course small cars are valued higher now because people are avoiding buying bigger vehicles and
2. MINI dealers are sold out of MINIs for the rest of the year! There’s such a demand for MINI Coopers that the only way to get a MINI Cooper is to have one pre-ordered or buy one used. I’m not sure if this shortage also applies to the uglier, but longer, MINI Cooper Clubman though. I think it’s uglier simply because of its tail lights. Otherwise it just looks like a longer MINI.
Anywho, our net worth didn’t take as big of a hit from car depreciation thanks to the appreciation of the MINI. Also, the Pontiac only dropped in value by about $20, but that’s on a $1,200 car. But then again, our investment portfolio (IRAs and 401ks) dropped by thousands of dollars last month alone. It’s painful to do these net worth calculations, but I know we’re in it for the long haul and know it’ll get better eventually.