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.
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Why Do Used BMWs Cost So Little? (Explaining Fast Depreciation)
On this site, we’ve written a lot about opulent BMW vehicles. In recent weeks, we have mostly concentrated on their affordability, reliability, and maintenance costs. We’ll combine these studies today to provide an explanation for why secondhand BMWs are frequently less expensive than models from other luxury automakers:
After ten years, BMWs typically have a residual value of 24 percent, which is lower than the 28 to 35 percent of other premium automobile brands. Because many used BMWs have shorter lifespans and more issues than other automobile brands, which leads to higher annual maintenance expenses, used BMWs are this inexpensive.
That, however, hardly provides a comprehensive response to the topic. To demonstrate how quickly BMWs lose value, we’ve compiled data from several sources and produced visualizations for you to view below. In addition to comparing BMWs against other brands, we also contrast a number of BMW models with one another. Finally, we go through why BMWs are less expensive than other manufacturers and which BMW would be the greatest choice if you were in the market. Read on!
2/15 Lack of Experience Leads to Poor Maintenance
Many inexperienced drivers purchase BMWs and neglect to maintain them due to the relatively low prices for old models. This indicates that there are several vehicles available for purchase that have received little or no planned maintenance. Is that really something you’d want to buy? Many non-car enthusiasts don’t really care about that kind of thing and just drive them till they expire, and even many fanatics insist on doing the repair themselves. It’s more worse if the warranty has expired.
Are BMW 3 Series repairs expensive?
Yes, BMW servicing is more expensive than many other manufacturers, whether they are premium or not, once the warranty expires. Over a ten-year period, a BMW may cost $12,000 more to maintain than a Toyota and $5,000 more than a Mercedes-Benz.
Because it’s a German car with specialized parts and technology, maintaining a BMW is pricey. It’s not merely a car to get people from point A to point B; it was designed for driving aficionados. A $400 battery replacement, for instance, might be necessary because the mechanic must register the battery with the engine control module. If not, the battery risk of an early demise since the vehicle won’t “know” how to charge it.
Additionally, the Digital Motor Electronics (DME) system in cars connects countless sensors and controls. A BMW may require a sophisticated method for a simple repair on another vehicle, which increases labor expenses.
Yes, a 3-Series BMW requires pricey maintenance once the manufacturer or certified pre-owned warranty has expired. A used BMW 3-Series typically costs $1,000 to $1,700 per year in maintenance and repairs.
A BMW 328i oil change can cost between $149 and $174, according to RepairPal. Nevertheless, depending on your area and BMW model, you can pay more than that.
Is buying a BMW 3 Series worthwhile?
What Makes the BMW 3 Series Good? The BMW 3 Series is a respectable luxury compact car, yes. Performance, which is still its main selling point, is characterized by assured handling and quick acceleration. The M3, the top model in the series, is designed to be track-ready while the base model has excellent fuel efficiency.
Why do BMWs lose value so rapidly?
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.
Better BMW 1 or 3 Series?
With regard to fuel types and transmissions, both models provide a wide variety of powertrains. The 3 Series also has a state-of-the-art hybrid. The 330e has several astounding statistics, like as a 292hp power rating with only 188.3–201.8 mpg in terms of consumption.
These two automobiles also come with performance options. The M135i xDrive, a brand-new hot hatch with 306 horsepower and four-wheel drive that can reach 62 mph in just 4.8 seconds, is an option for the 1 Series. The M340i with xDrive is back for the 3 Series. With a 3.0 liter inline six-cylinder engine producing 374 horsepower and 500 Nm of torque, the car accelerates from 0 to 62 mph in in 4.4 seconds.
Overall, these cars are quite evenly matched in terms of their engines. The 3 Series is the more potent of the two, but because it is larger than the 1 Series, its fuel efficiency isn’t quite as outstanding.
Why do BMW’s problems keep coming up?
BMWs are intricate, high-performance vehicles that require demanding maintenance. The biggest cause of BMW issues is users skipping costly routine maintenance and failing to adhere to the owner’s manual’s instructions.
Many of the car’s problems can be solved in advance when servicing and maintenance tasks are completed on schedule and BMW’s suggestions are followed.
Given how expensive BMW maintenance can be, it may be tempting to put off the regular service if everything is going well, but doing so may result in a number of underlying problems that worsen with each drive.
Purchasing a secondhand BMW presents a unique set of challenges because it is impossible to know for sure how well its previous owners have taken care of it.
This is why the service history and proof of completed work are so important when purchasing a used BMW.
However, problems do not always arise with pre-owned BMWs. Why would that be if some new cars can also suffer?
The truth is that BMWs tend to be higher-performance, premium vehicles with more intricate parts and a variety of technologically advanced features that you won’t find in less expensive vehicles, which inevitably raises the chance of difficulties.
When a new model or engine is developed, it might be particularly problematic since flaws that were previously undiscovered may appear.
A few years after a car is introduced, BMW frequently releases “LCI” (Life-Cycle Impulse) improved versions to address some of the new issues that have been found.
What issues does the 3 Series BMW have?
- Frequent car vibrations Problem:
- Oil on the engine block.
- Illuminated taillight. Problem:
- Driving a little bumpy.
- Coolant Leak. Issue
- Reduced Engine Performance. Issue:
- Back wiper stopped functioning. Problem:
Is the BMW 3 Series an excellent first car?
The 3 Series is BMW’s most popular vehicle. It is a small family or executive car with excellent dynamics and lively handling.
As a safe and useful first vehicle, a BMW 3 series would be a wonderful choice. It has some great safety measures and has superb sight for the driver. However, it wouldn’t be practical for novice drivers with a limited budget.
The combined city and highway mileage for the 2.0L automatic is 30 mpg, which is acceptable.
The 3-series maintains some aspects of an affordable car while projecting a premium aura.
Are BMW 3 Series vehicles quick?
The M340i xDrive model of the 2021 BMW 3 Series has a 0-60 mph acceleration time of just 4.4 seconds. The sedan uses a 3.0-liter engine to its best potential to give nonstop fun on each drive, so there will never be a dull drive.
The BMW 3 Series is dependable.
The 2022 BMW 3 Series had a predicted dependability score of 79 out of 100 from J.D. Power. A predicted dependability score between 91 and 100 is regarded as the best, between 81 and 90 as great, between 70 and 80 as average, and between 0-69 as fair and below average. There is a 4-year/50,000-mile warranty included with the BMW 3 Series.
Do BMWs live up to the hype?
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.
Is the 3 Series being phased out by BMW?
There are only a few months till the BMW 3 Series facelift debut. Beginning in July 2022, manufacture of the updated midsize sedan and touring will last through 2025 (for the sedan) and 2026, respectively (touring). The NK generation (Neue Klasse), a platform that is centered on electric vehicles, will replace the 3 Series as we currently know it.
What drawbacks are there to buying 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.
What BMW retains its value the best?
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.
How durable is a 3 Series BMW?
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.