PDA

View Full Version : F10 resale value


bimluva
10-06-2010, 07:45 AM
Is the 550i XDrive residual that much worse than a 535i xDrive? I only ask because I have always been a leaser but have decided to buy a 550i xDrive with M-Sport...am I gonna get reamed trying to sell or tradein after 5-6 years? Actually what prompted this thought was on the other forum they were talking about 2010 M5 losing 64% in 3 years( yea, I know it is the older body)

Emilner
10-06-2010, 08:15 AM
I would say 50% at best in 3 years. M/AMG cars depreciate much faster due to their elevated price and oversupply, not to mention they are based on regular cars when compared to a GTC or Ferrari. People also know they were probably beat on and have high mantainence costs. I have seen 7-8 year old 540i sports in good shape with reasonable mileage still go for close to $20k. I would say in 5-8 years you will be in the $20k's

bklyn550
10-06-2010, 08:41 AM
you need to see what wholesalers are paying for the cars in question...kbb is garbage as well as many other sites...with so many auctions out there prices are lower in the past and buyers are not going to pay top dollar.

trekman
10-06-2010, 01:10 PM
Is the 550i XDrive residual that much worse than a 535i xDrive? I only ask because I have always been a leaser but have decided to buy a 550i xDrive with M-Sport...am I gonna get reamed trying to sell or tradein after 5-6 years? Actually what prompted this thought was on the other forum they were talking about 2010 M5 losing 64% in 3 years( yea, I know it is the older body)Just look it up on used car websites what they sell for. BMW looses 10 percent per year average. Year 2000 5 series now sell for 3-6K. 3 years olds now sell for 25-35K. 7 year olds are at the end of their percieved trouble free lives, 10-20K. If you want a car that holds it value, get a Camry or Accord. High end cars plummet much faster, richer people just buy them new, and don't read or care about internet forums. They are busy working at work.

solstice
10-06-2010, 02:40 PM
The fact that it will almost be impossible to find a second hand F10 for a few years should work in your favour since there will be a demand built-up in time for the bulk of the leases to start to expire. It's a good looking car and there will be people less fortunate that will want one when it's in their range. That's the good thing in your case, the bad thing is that it's a 550. It's my experience that second hand buyers prefers the cheaper models since the price gap to a new F10 of any type is larger. It's hard to find a customer who wants to pay more or less the same for a used 550i as a brand new 528i. Especially in economic hard times and oil prices still scaring people away from big engines.

Stealth.Pilot
10-06-2010, 02:45 PM
The biggest drop comes when the model changes. I think for 3 years you would be good to assume 5% resale value on the current 5.

The older models will drop like a tank. You can get a 2008 750 for mid 30s now which I find shocking!

1HOT BMR
10-06-2010, 04:00 PM
The higher the initial cost, the bigger the depreciation. So called high end cars like BMW depreciate more - get ready to take a huge depreciation if you buy. The 550i will be much worse than the 535i, especially right after gas hits $5 per gallon which it's likely to be sooner rather than later. I keep my cars a long time - at least 6 and I kept one for 9 years - so at purchase time I'm not counting on the car having any value whatsoever at the end of my ownership. It's nice to have no regrets in the end. :D

If you are not planning on keeping the car for at least 5 years, I'd say just keep on leasing . . . :thumbup:

1985mb
10-06-2010, 04:08 PM
Is the 550i XDrive residual that much worse than a 535i xDrive? I only ask because I have always been a leaser but have decided to buy a 550i xDrive with M-Sport...am I gonna get reamed trying to sell or tradein after 5-6 years? Actually what prompted this thought was on the other forum they were talking about 2010 M5 losing 64% in 3 years( yea, I know it is the older body)

You can speculate about resale as much as you want, but there's no predicting the future. In the meantime, why don't you buy the car you really want? Spend the next 6 years enjoying your car, rather than whether you'll get, say, 35% back vs 37%.

If you still want my 2 cents on resale, I'll throw this in: all else being equal, when it comes to bimmers, get the RWD+MT+Sport package for best (private party) resale. If you're going to trade in to a dealership, get an AWD+AT at least here in the northeast. See how that just created another dilemma? Just get the car you want and will enjoy.

1985mb
10-06-2010, 04:10 PM
Actually what prompted this thought was on the other forum they were talking about 2010 M5 losing 64% in 3 years( yea, I know it is the older body)

And why would an E60 M5 lose that much value in 3 years? It's the last high-revving N/A M5 and probably the last V10 BMW ever made. It should hold its value rather well.

Slaymaster
10-06-2010, 04:33 PM
Are we talking about cars which always lose value and an order for a F10 was recently placed? Damn, let's enjoy the car first as cars always lose a 50% average over the first 3 years. Personally based on the miles some members put on their Garage Queen Ultimate Driving Machines, I think I would rather have an early 70s 3.0CSi and never lose a dime.

Sorry, I was compelled to say it! I'm off my soap box....please carry on!

DXK
10-06-2010, 04:35 PM
It***8217;s true that 535 residual is few percentage points higher and it***8217;s always been that way, even though N54 engine in 535 has all kinds of fuel delivery problems, and the real market prices are lower that what BMW thought they***8217;d be.
I am looking at it this way: I lease a first year production car with the set residual, so my risk is only my inability to make monthly payments, in which case I can swap the lease. At the end of the lease, I will have many options with a definitive ***8216;put***8217; option (limited, known risk), so there will be no further risk to my money. If the car has major problems, it gets turned in. If the market value is lower than residual, I can possibly buy it from BMW for less, if it is higher, I can buy it for a residual and be ahead. If I feel like positively getting a new car, I can do that. If my financial situation changes, I can do whatever. You cannot estimate your profit/loss currently with any degree of certainty, given the unstable economy / currency, thus determining the market value of any car 3, 5, 7 years from now amounts to pure speculation.

Jack Stefano
10-06-2010, 05:11 PM
People also know they were probably beat on and have high mantainence costs.

This is the only thing that really makes any difference. As I understand it, the OP is not getting an M car, just the appearance package. Shouldn't have any effect on the value (not negatively anyway). But yeah, if it's an M5 the resale is bad because of what you said.

1HOT BMR
10-06-2010, 05:25 PM
But yeah, if it's an M5 the resale is bad because of what you said.

Well, that was not my case. The 2009 M5 was on my short list. I drove both the automatic and the manual and the reason I did not buy one is simply because I did not like them. The automatic was horrible - clunky and rough, the manual had very long throws and was imprecise - the engine was powerful but it got all the power at very high rpms - good for the track but not for the street. Finally, the steering felt overboosted to me and I did not like it at all. The 2011 550i is eons ahead of any M5 up to this point and it is so much more fun to drive.

pharding
10-06-2010, 08:07 PM
The OP refers to an M-Sport version of the F10 not an M5. Big difference.

BeemerGuy
10-07-2010, 06:51 AM
DXK makes some good points.

The E60 M5 never did well in depreciation because many people consider the E39 M5 to be a superior car (more low-end torque, early SMG issues with the E60, looks, etc.) and as mentioned above, the M5 has some very high maintenance costs. In my limited research, I've found that the V8 5 series cars depreciate (as a percentage) much quicker than the I6 cars do. There are minor maintenance issues with the V8 but overall there isn't a huge difference, they just don't seem to do as well.

Trekman's prices may only apply in MA or in the NE, but down here in the South any decent 5 series will still sell for the low teens. A guy I work with here just bought a 2001 525 in nice condition and average miles for 11K and he paid average retail. A rough high mileage 5'er will still sell for 7-8K. Having no rust is a great selling feature!

trekman
10-07-2010, 03:57 PM
Trekman's prices may only apply in MA or in the NE, !

I got my prices from cars dot com, searched the whole nation, dropped the lowest and highest both miles and cost combined.

I am surprised at the amount of math people calculate with leases. I just look at 36 times the rent + initial costs + taxes + other costs minus cost of buying the car = "?". Is this 3 year old car selling for more or less than "?" currently. Usually it will be selling for more, especially with low miles like most lease returns. Now BMW and their dealers just doubled their profit almost.

Stealth.Pilot
10-07-2010, 04:00 PM
The E60 M5 never did well in depreciation because many people consider the E39 M5 to be a superior car

I think the real reason it didn't do well on depreciation is they put through a massive price hike over the E39 M5 and as a result it was overpriced. While a few over eager mugs were prepared to pay the ridiculous price, more value conscious used car buyers were not and so you see market pricing in used market, and distorted new car price. High depreciation is result.

jeff650
10-07-2010, 05:08 PM
And why would an E60 M5 lose that much value in 3 years? It's the last high-revving N/A M5 and probably the last V10 BMW ever made. It should hold its value rather well.

I don't have any answer to the OPs question, but a major reason why the M5 loses value so quickly at the 3-4 year point is the warranty - cars nearing the end of coverage for the complex V10 and associated M5 systems are thought to be much higher risk for repair, and this is factored into the value.

For someone willing to accept that risk, an M5 is a terrific value.