How Much Do BMW Depreciate?

The BMW 3-Series, like the majority of BMWs, quickly loses value after being driven off the new car lot. For brand-new purchases, your 3-Series will be worth roughly 60% of its original sticker price after three years. Consider a few-year-old car that is still covered by BMW’s “certified pre-owned program,” commonly known as a CPO automobile, if you want to save a ton of money and let someone else enjoy the new car scent. There are some great prices to be had here, and since they don’t change much in appearance, nobody will even notice that it isn’t a brand-new vehicle.

The anticipated depreciation over the following ten years is shown in the figure below. These outcomes apply to cars that travel 12,000 miles annually on average and are in good condition. It also expects that the selling price at launch will be $49613. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. The projected resale value for the BMW 3 Series can be determined using our depreciation calculator.

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Calculator for BMW Car Depreciation by Model

Find and determine your BMW’s depreciation at any point during ownership.

The average depreciation of a BMW car over the first three years after purchase is 35%. Choose a BMW from the list below to determine its depreciation:

In order to estimate the value loss for a new or used BMW, utilize this depreciation calculator. We can calculate the car’s future value using our depreciation models by providing some information, such as the purchase price, the age and usage of the vehicle, and the length of your ownership.

Our calculations are based on the predicted depreciation for the first three years. We do market research on the automotive industry to find out how much each car depreciates on average over the first three years after purchase.

We can predict the car’s future value using the first three years’ depreciation curve, and we can make a comprehensive table that details each month of ownership, the subsequent depreciation, and the car’s new value.

This calculator will help you make decisions when you’re thinking about buying a car.

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Before making any decisions, we expect you to get complete professional guidance from a whole of market counsel. We have offered guides, tools, and a selection of deals (lowest rate and/or costs).

Because we are not offering advice and mistakes can happen, use the material supplied at your own risk. Since the calculations on the website are estimates, they may occasionally include assumptions or approximations. We are not liable for any errors and cannot accept responsibility for them.

after three years, the average depreciation rate for cars

Most pertinent to our discussion is probably the three-year point. This is so because the majority of auto leases are for 36 months, or three years. These vehicles—cars, pickup trucks, SUVs, minivans, etc.—are most likely to be available for resale on the used car market after three years. The news is not positive for sellers. At the conclusion of three years, the typical automotive depreciation yields a 58% True Market Value.

That is merely the norm. Which models still hold up poorly three years later? You may be surprised at the solution. The BMW 5 Series and Volkswagen Passat are the two vehicles that depreciate the most, respectively, according to AutoTrader and iseecars. The BMW 3 Series (49.8%) and Mercedes-Benz E-Class (49.9%) are two further German vehicles that suffer significant losses. Ford Taurus (49.7%) and Chrysler 200 (48.4%), two American automobiles, both degrade quickly, losing half of their value in just three years.

We are really just splitting hairs among the top ten automotive depreciation losses, so keep it coming. The Volkswagen Jetta (48.1%) and Audi A3 (47.9%), two further German models that rank among the highest depreciating vehicles, are hardly any better. To round up our list of vehicles to give serious consideration, the American-made Cadillac SRX (47.2%) and Buick Enclave (46.8%) are ranked ninth and tenth, respectively.

Notably absent from the list of vehicles that lose value the quickest are any Japanese models. Japanese cars maintain their value much better than German and American ones thanks to their well-deserved reputation for dependability. Particularly when it comes to maintenance and repairs, German cars may be highly expensive.

Top 5 Vehicles with the Fastest Appreciation

Four of the top five cars that lose value the quickest are luxury sedans. The BMW 7 Series is the top vehicle with the fastest depreciation. Over the course of five years, this car has depreciated on average by 72.6%, losing roughly $74,000 in value. The second vehicle is the BMW 5 Series, which has a value loss of over $47,000 or a five-year depreciation rate of 70.1%.

The problem with these pricey luxury vehicles is that used car buyers do not value their amenities and technology. These expensive vehicles are also frequently leased, which expands the market for off-lease cars once the regular three-year lease term has passed.

The Nissan Leaf, an electric car rather than a luxury vehicle, comes in third with a five-year depreciation rate of 70.1%, or approximately $23,500 in value. Government subsidies, which aren’t provided to buyers of secondhand cars, are responsible for this EV’s fall. However, as battery technology advances, they also quickly become obsolete.

Other luxury sedans, the Audi A6 and Maserati Ghibli, which both have a five-year average depreciation rate of 69%, are in fourth and fifth place. All of this is not to argue that less expensive cars don’t lose value just as quickly. These vehicles with an MSRP under $25,000 have the fastest depreciation rates.

Just how much do autos lose value?

The first year is when cars lose the most value, and depreciation lasts for around five years. A car’s value can drop by up to 20% in the first year and by about 40% from the initial cost over the course of the first five years. That indicates that after the first year, it loses around 15% of its value annually.

After five years, how much does a BMW depreciate?

If a new BMW 5-Series is acquired, its value depreciates quite quickly. Expect them to be worth roughly 45% of their original purchase price after five years. They are worth roughly 20% of their original cost after ten years. If saving money is vital to you, we advise against buying a 5-Series because of its high cost of repairs and high rate of depreciation.

The anticipated depreciation over the following ten years is shown in the figure below. These outcomes apply to cars that travel 12,000 miles annually on average and are in good condition. It also counts on a $64,289 retail price for the vehicle. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. The projected resale value for the BMW 5 Series can be determined using our depreciation calculator.

Do BMW vehicles lose value quickly?

A brand-new BMW is typically not a wise investment, unless you take enjoyment and nice aesthetics into account. New BMWs typically degrade quickly after being driven off the lot and are ranked near the bottom of the luxury rankings. It depends on the BMW model you’re looking at, much like with the other German premium brands (Audi, Mercedes-Benz). It will ultimately depend on the model and body type you are thinking about, so do your research. The 7 Series should be avoided because the resale figures aren’t great.

Our top choice for the BMW model year with the best value is the 2017. The 2017 would cost you, on average, 59% less than it did when it was brand-new, and it would still have 58% of its usable life left.

For the BMW models, the 2018 and 2020 model years are especially appealing and offer a respectable value. Our rankings take into account a number of variables, such as the original new price, the current price, maintenance expenditures, and the remaining years of anticipated overall spending. Our top-ranked model year is the BMW model that offers the best value for the money.

The value of BMWs is it stable?

The value of the BMW 2 Series is even better maintained; according to the most reliable BMW resale value assessments, it will still be worth roughly 49% after five years. Once more, the first two years account for about 25% of that depreciation.

Why is the value of a BMW so low?

The oversupply of BMWs on the used market is one factor contributing to their low price. Similar to other products, when there is a surplus and a decrease in demand, the price of the commodity falls. If you’ve ever looked at a new BMW, you’ll note that practically every model has excellent lease offers. But what takes place when those vehicles are rented, returned, and then traded in?

BMW lease returns are normally either sold at auction or offered for sale as certified pre-owned vehicles on dealer lots. Additionally, when dealer lots are overflowing with CPO vehicles, it lowers the cost of the vehicles not just for dealerships but also for individual sellers. And whether you’re a dealer or an individual selling a car on the street, you must price the vehicle you’re selling in accordance with the going rates in the market in order to maintain a competitive edge.

Why do Mercedes lose so much value?

The Mercedes Benz E Class has a high purchase price and high maintenance costs, which is a surefire recipe for rapid depreciation.

Being a luxury car, it meets a fate similar to that of other vehicles in its category. Because these cars are frequently leased, there is a huge influx of three-year-old models of this car being resold.

It is far better to choose to purchase a used E class than a new one because the glut of off-lease vehicles available at low costs destroys the market value. For less than half of what you would spend for a brand-new E Class with fewer than 30,000 miles on the odometer, you can purchase one.

Which BMW is the most valuable when sold?

The BMW M3 has the highest resale value among all luxury vehicles. IntelliChoice predicts that the renowned performance model of the BMW 3 Series will hold on to 56.5 percent of its original value after five years of ownership.

Despite its unattractive exterior (really, BMW, what were you thinking when you designed that grille? ), the new G80 generation M3 has excellent handling. It will reach 60 mph in Competition mode in 3.5 seconds. The M3 is, however, entirely focused on handling. Compared to previous M3s, the front end is astonishingly grounded, and the dynamic balance is more neutral. It may be the best M3 yet as long as you don’t need to see it; grip and overall performance are excellent.

BMWs still dependable after 100,000 miles?

Once more, it mostly depends on the car you’re considering. You should also think about the car’s maintenance routine. A BMW should endure well over 100,000 miles if it has been properly-maintained and receives regular maintenance. Some owners have even driven their BMWs for more than 250,000 km.

As a result, when they receive proper care, they last for a very long period. To this, it should also be added that it depends on where you live. If you reside somewhere with poor driving conditions, you should anticipate a BMW to last less than 100,000 miles, probably even less. Ruined roads, a lot of snow in the winter, and other unpleasant circumstances are examples.

How far can a BMW travel?

With the right care, almost any BMW has the ability to last up to 200,000 or even 250,000 miles, and there will always be outliers that go even longer. It’s simple to get off to a good start because every new BMW comes with free factory-recommended maintenance through BMW Ultimate Care.

A BMW can it last 300k miles?

When properly maintained and driven cautiously, the BMW 3 Series can endure between 200,000 and 250,000 miles. It will last roughly 13 to 17 years if you drive 15,000 miles per year before needing pricey and uneconomical maintenance. In some cases, the 3 Series can travel up to 300,000 kilometers.