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.
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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.
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.
How quickly does the value of the car decline?
You might be shocked to learn that the moment you buy a car, its worth drops to 91% of its original market value. Why? Well, it all depends on how the upcoming potential buyer perceives it. The car’s status changes from “new car” to “used car” at the time of purchase, and even though it has only been driven for a minute, its value is drastically reduced.
After that, the car’s value keeps decreasing yearly. The following values are used in our car depreciation calculator (source):
- Your car’s worth drops to 81% of its original value after a year.
- Your car’s value drops to 69% of its original cost after two years.
- Your car’s worth drops to 58% of its original value after three years.
- Your car’s worth drops to 49% of its original value after four years.
- Your car’s value drops to 40% of its original cost after five years.
Our automotive depreciation calculator makes the assumption that your car will be worth nothing in approximately 10.5 years. You will still be able to sell it to private individuals, but it will have a very low market value.
Each brand and type of an automobile actually depreciates at a slightly different rate, or as we say technically, it has its own automotive depreciation rate. Nevertheless, you can use this calculator to show you what the value will be in general after a given period of time.
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.
How Quickly Do Car Values Decline?
Okay, even though numerous things affect how and why cars deteriorate, one thing holds true almost always regardless of the kind of car you purchase:
New cars lose value far more quickly than secondhand cars. how much quicker We’ll simply say that we hope you’re buckled up.
- ONE MINUTE LATER: As soon as you drive off the lot, a new car loses between 9 and 11% of its value. So, when you take a $30,000 brand-new automobile home for the first time, you’re essentially throwing $3,000 out the window!
- AFTER A YEAR: According to research, the first year of ownership is when the value of a new car drops the most. Your car’s value will most likely be 20% less than what you paid for it after a year.
- AFTER FIVE YEARS: After that sharp initial decline, the value of a new car will decline by 15–25% yearly until it reaches five years. Therefore, a new car will lose about 60% of its value after five years. 2,3
The value of the popular BMW 3 Series drops by 53.4% after three years.
The value of the well-liked BMW 3 Series drops by 53.4% after three years. The original cost of a nice used 3 Series sedan has dropped by $26,000, making them available for less than $23,000. The Volvo S60 is immediately below the 3 Series. It may be obtained for under $20,000 at a loss of almost $22,000 from its original cost at a depreciation rate of 53.2%.
The E-Class sedan sits in the center of the Mercedes lineup. After three years, an E-Class has lost 52.7% of its value, making it possible to purchase one for a little over $31,000. That is a decrease from its new list price of roughly $35,000.
At three years old, the next five cars had all decreased by at least 51%. The Lincoln MKZ comes in at number six, followed by the Infiniti Q50 and the BMW 4 Series. Both lost about $28,000 and can be purchased for about $27,000 after three years. The smaller car below the A6 Audi A4 is ranked at position 10. It may be purchased for about $22,000 when it is three years old after losing nearly $23,000 in value.
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.