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High residuals make new convertibles a good business buy

Two prestige-brand compact convertibles, the Audi A3 Cabriolet and BMW 1 Series Cabriolet, will be the best business buy among convertible cars reckons EurotaxGlass’s Jason King.
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King: high demand for Audi, BMW Convertibles

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10 January 2012

Audi A3 Convertible - expect high residual values
King: high demand for Audi, BMW Convertibles

Two prestige-brand compact convertibles, the Audi A3 Cabriolet and BMW 1 Series Cabriolet, will be the best business buy among convertible cars reckons EurotaxGlass’s Jason King.

Two prestige convertibles, to be introduced to the UK market this year, will establish a new benchmark for drop-top residual values (RVs) – the amount they are worth on the used market.

When the newly-launched BMW 1 Series and Audi A3 cabriolets reach the secondhand market later this year, we expect them to command exceptionally high prices relative to their original cost new.

Initial demand could see used examples selling for near-list price.

Even as supply of secondhand units increases, we expect the diesels to hold onto 50% of their list price after three years and 60,000 miles.

There is nothing else like the BMW or Audi on sale at present. Since the demise of the Volkswagen Golf, the market has lacked a small, desirable, fabric-roof convertible.

Many manufacturers have opted to launch coupe-convertibles with folding hard roofs instead of the more traditional soft tops, a move which has failed to attract the more image-conscious drivers who like people to know that they drive convertibles.

We believe that a good number of prospective buyers have been waiting for a compact cabriolet from a prestige brand. The BMW 1 Series and Audi A3 have created a new niche in the drop-top market.

Limited availability of these prestige convertibles on the used car scene will bring strong residual values initially, while low ownership costs in the longer term will be aided by the fact that both vehicles will retain a healthy proportion of their value even after three years.

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Ralph Morton

Ralph Morton

Ralph Morton is an award-winning journalist and the founder of Business Car Manager (now renamed Business Motoring). Ralph writes extensively about the car and van leasing industry as well as wider fleet and company car issues. A former editor of What Car?, Ralph is a vastly experienced writer and editor and has been writing about the automotive sector for over 35 years.

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