Incredible Depreciation for BMW - Page 8 - Bimmerfest - BMW Forums



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The sixth generation BMW 3 Series Sedan F30/F31/F34 and the first first generation 4 Series Coupe F32/F33/F36. Get the latest 3 and 4 series pricing from our ordering and pricing guide sticky thread.

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  #176  
Old 03-23-2019, 08:09 AM
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LarryboysUDM LarryboysUDM is offline
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It's painful to see most bimmers (including mine) depreciate that fast. I paid $57K out the door in Oct 2012 and now it's worth $11K to $13K; I'm looking at it this pretty bad ass car and it should be worth more! I'm keeping this until I'm ready to lease or buy a used car.
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  #177  
Old 03-23-2019, 08:46 AM
Autoputzer Autoputzer is offline
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Quote:
Originally Posted by LarryboysUDM View Post
It's painful to see most bimmers (including mine) depreciate that fast. I paid $57K out the door in Oct 2012 and now it's worth $11K to $13K; I'm looking at it this pretty bad ass car and it should be worth more! I'm keeping this until I'm ready to lease or buy a used car.
Buying used will avoid the new car deprecation. Leasing will not.

"Bad ass" (luxury and/or high performance) cars depreciate more than appliance cars. Similarly, speed boats depreciate faster than lawnmowers or refrigerators.

I sold my six year old, 74k-mile pick-up truck for about half of what I paid for it. My 2007 Chevy Cobalt actually appreciated about $100 to $200 in 2011 and in 2018.

A good rule of thumb for new car depreciation with the normal 12k miles/year is:

25% (off of MSRP) the first year.

20% (of book value) the year the car goes out of warranty, becomes seven model years old, and goes over 100k miles.

15% (of book value) the remaining years.

More expensive cars, and heavily optioned cars will have greater depreciation rates. A BMW 5 Series will have greater depreciation rates than a 3 Series. Options depreciate faster and further (usually down to zero) than the base car.

My heavily optioned 2014 535i has depreciated faster than the rule of thumb rates. Using the rule of thumb, it should be worth 37% of MSRP after five years. But, it's only worth 29% of MSRP. That's all the more reason for me to keep it another three or four years and to 100k miles. By then, it will be worth about $10k.

One of the reasons that BMW's depreciate so fast when new is that about 55% of the new BMW's put on the road in the U.S. are leased and will come back on the market as a used car in two to four years. The sweat spot for leasing is three years.

One of the reasons that BMW's depreciate so fast when old is that maintenance and repair costs are high.

The only person I trust enough to buy a use BMW from is... me. So, I buy new ones and keep them to around 100k miles. When I get one of those four-figure repair bills between 50k and 100k miles, I remember how much the car depreciated between 0 and 50k miles ($51.2k in my case). Then, that occasional four-figure repair bill doesn't seem so bad.
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  #178  
Old 03-23-2019, 10:03 AM
namelessman namelessman is offline
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Quote:
Originally Posted by LarryboysUDM View Post
It's painful to see most bimmers (including mine) depreciate that fast. I paid $57K out the door in Oct 2012 and now it's worth $11K to $13K; I'm looking at it this pretty bad ass car and it should be worth more! I'm keeping this until I'm ready to lease or buy a used car.
nadaguides says my 2013 [email protected] miles is $12.5k clean trade and $15k clean retail, may be that is on high side?

Miy custom order(mainly for xenon) was purchased with 5 miles for $37k + tax + fee(MSRP $43k), so it still keeps 34% of original purchase value, or 29% of MSRP.

It makes sense the lowest spec base car keeps the most value.
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  #179  
Old 03-23-2019, 10:07 AM
namelessman namelessman is offline
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Originally Posted by Autoputzer View Post
BMore expensive cars, and heavily optioned cars will have greater depreciation rates. A BMW 5 Series will have greater depreciation rates than a 3 Series. Options depreciate faster and further (usually down to zero) than the base car.
More importantly, early adopters often take the most blunt from price drops and depreciation, e.g. a coworker's spanking new(3-month old) $144k model x now goes for $99k brand new, let alone the actual depreciation of the car. In comparison, depreciation of bimmers is reasonable.
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  #180  
Old 03-23-2019, 10:15 AM
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quackbury quackbury is offline
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When you lease, there are no surprises. Your cost of ownership is completely quantifiable. Buying (new, used or CPO) is an economic crap shoot.

Off topic, it's a little sad to flip through this thread and see how many of our former "regulars" are no longer hanging out in the 'hood. Mr. Clueless. Wagosa. Laser. Openwheelracing. Chiefneil. The ubiquitous CalWaterboy triplets. I see the same thing happening on the G30 and Ask-a-Dealer boards. What's happened to the old gang? Have they all moved to that "other" BMW enthusiast site?
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  #181  
Old 03-23-2019, 10:42 AM
Autoputzer Autoputzer is offline
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Originally Posted by quackbury View Post
When you lease, there are no surprises. Your cost of ownership is completely quantifiable. Buying (new, used or CPO) is an economic crap shoot.

Off topic, it's a little sad to flip through this thread and see how many of our former "regulars" are no longer hanging out in the 'hood. Mr. Clueless. Wagosa. Laser. Openwheelracing. Chiefneil. The ubiquitous CalWaterboy triplets. I see the same thing happening on the G30 and Ask-a-Dealer boards. What's happened to the old gang? Have they all moved to that "other" BMW enthusiast site?
After five years and 57k miles, my average monthly depreciation, maintenance, and capital costs are just about exactly where they'd be if I'd leased. But, it's that sixth, seventh, eighth, and maybe ninth years of ownership where I'll save a pile of money. My savings will be on the order of $25k.

Maybe it's because the weather is better and people our doing outside stuff more.
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  #182  
Old 03-23-2019, 11:06 AM
Autoputzer Autoputzer is offline
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Originally Posted by quackbury View Post
When you lease, there are no surprises. Your cost of ownership is completely quantifiable. Buying (new, used or CPO) is an economic crap shoot.

Off topic, it's a little sad to flip through this thread and see how many of our former "regulars" are no longer hanging out in the 'hood. Mr. Clueless. Wagosa. Laser. Openwheelracing. Chiefneil. The ubiquitous CalWaterboy triplets. I see the same thing happening on the G30 and Ask-a-Dealer boards. What's happened to the old gang? Have they all moved to that "other" BMW enthusiast site?
BMW plugging the loophole where leasers could buy back their car for the market price instead of the inflated residual price was a big surprise with leasing.
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  #183  
Old 03-23-2019, 11:52 AM
John MS John MS is offline
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Quote:
Originally Posted by LarryboysUDM View Post
It's painful to see most bimmers (including mine) depreciate that fast. I paid $57K out the door in Oct 2012 and now it's worth $11K to $13K; I'm looking at it this pretty bad ass car and it should be worth more! I'm keeping this until I'm ready to lease or buy a used car.
Just think of your car as fun transportation that is fully paid for. No more big acquisition expenditure. All you have are maintenance and repair costs. The longer you hold that car the better financially. It's the drivers who flip cars every 3 years that eat early depreciation repeatedly.
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  #184  
Old 03-23-2019, 05:55 PM
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laser laser is offline
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Quote:
Originally Posted by quackbury View Post
When you lease, there are no surprises. Your cost of ownership is completely quantifiable. Buying (new, used or CPO) is an economic crap shoot.

Off topic, it's a little sad to flip through this thread and see how many of our former "regulars" are no longer hanging out in the 'hood. Mr. Clueless. Wagosa. Laser. Openwheelracing. Chiefneil. The ubiquitous CalWaterboy triplets. I see the same thing happening on the G30 and Ask-a-Dealer boards. What's happened to the old gang? Have they all moved to that "other" BMW enthusiast site?
Hey Quack ...... Iím still here!

3 on topic data points:

we just sold our 1st BMW for $2,500 after 16 years of depreciation at $2,000 a year ..... a 2002 330i that was a joy to drive ...... i gave up adding the repair costs to my spreadsheet

sold my 2007 S2000 for exactly what i paid for it 7 years ago

my current ride is a 2017 330i M-Sport ..... bought a low miles stickered $51,000 car for $31,000 CPO ..... that will keep the depreciation under control!

I like to think Iím the exception to the depreciation rule!
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  #185  
Old 03-24-2019, 04:53 AM
Wolfus Aurelius Wolfus Aurelius is offline
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Yes, the cars depreciate. I paid about half of the 2015 328i's original sticker price after only 3.5 years. Which makes a great deal for those of us who buy used, can do some maintenance and repairs ourselves, and who have a good independent mechanic to rely on. My Buicks were the same way: Pricey to start, cheap to purchase after 3-4 years.
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  #186  
Old 03-24-2019, 06:27 AM
southcoastguy southcoastguy is offline
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When you lease, there are no surprises. Your cost of ownership is completely quantifiable. Buying (new, used or CPO) is an economic crap shoot. You are correct. At the end of your lease you just start all over paying for another car. Possibly the best path is to purchase a car and keep it for many years?
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  #187  
Old 03-24-2019, 07:22 AM
SteveinArizona SteveinArizona is offline
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There is no question that luxury cars depreciate quickly as you drive off the lot. But I have one thought: Don't most of the depreciation figures compare current selling price (i.e., used) to MSRP? But no one pays MSRP. If I am right, then as an example, if a $70K MSRP car depreciates at 50%, that would be $35K. But if one paid 10% less, that makes the purchase price $63K and the used sale price of $35K constitutes a 44.5% reduction. Still huge but not quite as huge.

I purchased my car (loaded) and with GEICO MBI, I plan to keep it for at least seven years.
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  #188  
Old 03-24-2019, 07:42 AM
Autoputzer Autoputzer is offline
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Originally Posted by SteveinArizona View Post
There is no question that luxury cars depreciate quickly as you drive off the lot. But I have one thought: Don't most of the depreciation figures compare current selling price (i.e., used) to MSRP? But no one pays MSRP. If I am right, then as an example, if a $70K MSRP car depreciates at 50%, that would be $35K. But if one paid 10% less, that makes the purchase price $63K and the used sale price of $35K constitutes a 44.5% reduction. Still huge but not quite as huge.

I purchased my car (loaded) and with GEICO MBI, I plan to keep it for at least seven years.
Yep. Discounts at purchase results in less deprecation that first year. But, there's sales tax, 6% in Floriduh. That money is gone. With my 2014 535i, sales tax and buying a spare tire and jack kit pretty much wiped out all my discounts. My out the door cost was $72,715 on a $73,030 MSRP... $315 below MSRP. I did better on our 2018 X3, $53,382 on an MSRP of $56,320.

I had to pay full MSRP for my 2002 M3. But, I was at the front of a two year long waiting list. After one year, I could have also sold it for MSRP. My only loss that first year was sales tax.
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  #189  
Old 03-24-2019, 08:16 AM
mbanks21 mbanks21 is offline
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Originally Posted by Autoputzer View Post
BMW plugging the loophole where leasers could buy back their car for the market price instead of the inflated residual price was a big surprise with leasing.
I bought my lease last month and got $4k off the residual
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  #190  
Old 03-24-2019, 08:53 AM
Autoputzer Autoputzer is offline
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Originally Posted by mbanks21 View Post
I bought my lease last month and got $4k off the residual
Yeah, o.k. How was that compared to KBB?

I don't lease, but leasers say they get discount offers from BMW before their lease is up.
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  #191  
Old 03-24-2019, 09:23 AM
jtmat jtmat is offline
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Originally Posted by mrminsky View Post
I also can see more people buying non CPO at non BMW dealerships for much less
I would buy a new accord before doing this... non CPO are sometimes beat up cars BWM would not take or auction cars.

I know, I purchased one.... luckily the dealership I got it from had a return policy. Ended up paying more for a CPO and I'm happy...

A BMW never makes any sense financially. I don't give a crap how you try to spin it.

If you are worried about spending money, get an Accord... I've had two of them that each went 10 years with no major maintenance worries at 200,000 miles each. Or get a Camry.

Those are sensible choices... bmw is not.

Far as lease vs. cpo.. Neither is the best choice. The best choice is to buy the car new and keep it until it dies. Properly maintain it and let it run until 200k or 10 years.

I flipped a coin and went cpo because I wanted a hard top vert... I plan on keeping it and see how it works out. Not the sensible choice but it has no loan (unlike a new vert bmw... loan for years)... lol
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  #192  
Old 03-24-2019, 09:35 AM
mbanks21 mbanks21 is offline
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Originally Posted by Autoputzer View Post
Yeah, o.k. How was that compared to KBB?

I don't lease, but leasers say they get discount offers from BMW before their lease is up.
I don't use KBB but my buyout was well below NADA retail value. Plus knowing the car since new, knowing all the maintenance has been done and the car modded the way I want it is priceless.
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