Because they are more expensive to begin with and a large portion of this additional cost is attributable to the “intangibles” that come with luxury automobiles, luxury cars degrade faster than regular cars (i.e. the prestige associated with owning a car from a brand like BMW, Audi or Mercedes-Benz).
The extra amenities and performance of a new luxury car aren’t worth the price premium over a basic car, according to the great majority of car buyers. For instance, a new BMW 5 series is probably not worth twice as much as a Toyota Camry to the majority of automobile buyers (although this may surprise petrolheads). For all practical considerations, the Camry is equally as capable of serving as a daily driver; the additional performance and badge status are largely subjective. In fact, because the Toyota has a solid reputation for dependability, many regular car customers prefer it to the BMW.
The gap between new consumers and those who buy used products is fairly wide, which puts downward pressure on prices even though the new buyer may find real value in the intangibles that come with buying a new luxury.
The adage “the bigger they are, the harder they fall” has probably been heard by you. This holds true for the cost of luxury cars as well, particularly luxury sedans.
In This Article...
Summary
An automobile’s value typically declines over time. BMWs, on the other hand, experience a far faster and more severe loss in value than other makes of cars. As a result of German government regulations, biodegradable rubber might be a factor. There are a variety of reasons why BMWs depreciate so quickly. As a result, you must take into account each car’s depreciation value before making a purchase.
It will be simpler to sell the car if you take this action. When buying a vehicle, take depreciation into consideration.
Eco-friendly rubber
The German government’s requirement that all domestic automakers use biodegradable rubber is one of the main causes of the rapid depreciation of BMWs. These rules are adhered to by all of Germany’s major automakers, including Porsche, Volkswagen, Opel, BMW, Audi, Mercedes-Benz, and others.
Although it has been forbidden, synthetic rubber has a significantly longer lifespan than ten years. Numerous components on a typical BMW tend to fail after a few years of operation because of the degradable rubber utilized in their construction. One of the key causes of used BMWs breaking down so quickly is because its plastic components are biodegradable rather than manufactured.
German engines would likely be unstoppable and extremely durable if they were constructed with the same rubber components as Japanese or American vehicles.
government mandates in Germany
Every component of every automobile sold in Germany is required to be made of natural, biodegradable rubber by law. This law was imposed by the German government, and it had a significant negative impact on BMW automobiles.
The rubbers wearing out and thinning have something to do with almost all faults and problems that a BMW car has. If you’re lucky, the rubbers will only last six to seven years. BMW vehicles begin to lose value in their fifth year, for this reason.
Synthetic rubber is used by other auto dealers. These synthetic rubbers have a lifespan of at least ten years. Therefore, after three to five years of service, the value of BMW cars will decrease since these rubbers will also become worn out.
These BMWs will unavoidably require upkeep and repairs if you sell them. They will depreciate considerably more quickly than any car brand as a result.
Do BMWs lose their 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.
Why do people continue to buy BMWs?
Simply said, drivers have practically endless reasons to choose a BMW over a car from another manufacturer since BMW offers the highest performance, safety, and quality out of any luxury automobile brand. After purchasing your first BMW, you won’t ever want to purchase another car from any other manufacturer.
Which automobile loses value more quickly, a BMW or a Mercedes?
The BMW 7 Series is always brought up when discussing depreciating vehicles. That’s because after five years of ownership, it has the dubious distinction of being the first car to break the 70% depreciation threshold.
BMW Series 7 vehicles lose value even more quickly than Mercedes Benz rivals, which is bad news for those who purchased them brand-new and good news for those purchasing used vehicles. A 7-series may be purchased for as little as $28,000, which is a stunning 65 thousand (or 70%) less than the original purchase price.
Why are used BMWs so inexpensive?
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 expensive vehicles lose value so quickly?
Luxury vehicles depreciate quickly because secondhand car purchasers don’t want to pay a hefty premium for an out-of-date model and owners typically trade them in when they become outmoded. In addition, they have a high cost of ownership that lowers their resale value.
How long do BMW cars last?
The durability of the car is undoubtedly one of your first concerns if you’re thinking about joining the club of “Bimmer” owners.
You don’t want to purchase a car that will break down after a year or two, leaving you with the choice of paying for expensive repairs or purchasing a new vehicle. How long do BMWs last, then?
BMWs may live more than 15 years with proper maintenance. BMWs with proper maintenance may travel far over 200,000 miles, and in certain cases, over 250,000 miles. Although this is significantly less common, certain BMWs have reportedly lasted beyond 300,000 kilometers.
In the USA, most people travel 13,467 miles (21,673 km) annually, giving cars an average lifespan of at least 15 years.
BMWs can survive longer because their average annual mileage tends to drop as they age because of this.
You may learn everything you need to know about extending the life of a BMW in the next sections of this article. We’ll also examine the typical lifespan of BMW gearboxes and engines.
A BMW: Is it worthwhile?
When BMW began promoting its cars as the “Ultimate Driving Machine” in the 1970s, the company soon grew to become one of the world’s top luxury automobile manufacturers.
BMW has a long history of producing eye-catching vehicles and SUVs that receive high praise from automotive writers.
Both auto fanatics and everyday people who just want the best for their vehicles greatly prize them.
Because they are high-performance luxury vehicles with excellent interiors, a smooth ride, high levels of comfort, and some of the best technological features available, BMWs are a good investment. BMW is a brand that embodies high status, and their cars offer an exceptional driving experience.
Do BMWs retain their value?
Increasing Value: BMW 2 Series 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.
Which automobiles do not lose value over time?
With the incredibly dependable and overly-engineered Toyota Land Cruiser, we’re off to a solid start. Due to its iconic 4.5L straight-six 1FZ-FE engine, we especially suggest the 90s 80 Series. Large displacement, smooth power distribution, and lots of torque are all characteristics of the normally aspirated engine that make them ideal for SUVs.
More than simply a terrific engine are among the advantages of the 80 Series Land Cruiser. Additionally, it includes a locking center differential and a full-time 4×4 drivetrain, enabling it to engage in some serious off-roading. Almost any 80 Series Land Cruiser can sell for a respectable sum as long as it is kept up reasonably well. Even vehicles with more than 200,000 kilometers may be purchased for $17,000. These devices are a great bargain right now because they were made to be enjoyed.
What drawbacks come with owning a BMW?
High Costs of Ownership (Con) The fact that having a BMW will cost you more than buying an average automobile won’t come as a surprise. You’ll require premium fuel, top-tier tires, and more expensive, imported parts. Additionally, labor costs and a change of synthetic oil will be higher.
Which vehicles don’t lose value quickly?
iSeeCars did a study looking at more than 8.2 million car sales to determine which models saw the lowest and biggest value loss after five years.
The most valuable vehicles are trucks, SUVs based on trucks, and sports cars. Luxury sedans lose the most value.
“Choosing a model that retains the greatest value is a wise economic decision for consumers who acquire new vehicles and plan to sell them in the first five years of ownership, especially when you consider depreciation is the single large ‘cost’ to owning a vehicle,” Brauer stated in a news release.
The Jeep Wrangler Unlimited with four doors has the lowest five-year depreciation.
The car with the largest depreciation over five years was the BMW 7 Series, at 72.6% on average.
The study’s major takeaway from iSeeCars is that automotive depreciation matters. According to the business, knowing how much a car has depreciated is crucial to making an educated decision when buying a new or used car.
Why is BMW more popular than Audi?
Reliability is another area where BMW outperforms Audi. Recently, all BMW models received expected reliability ratings that were above average. The well-known 5 Series received the highest rating, while the 2 Series, 4 Series, X1 and X4 also earned commendable results. Audi’s grades are significantly lower, and the brand received an average overall rating. Only three of Audi’s 12 models—the A5, A7, and A8—have anticipated reliability ratings that are above average, while the other four received below-average ratings.