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. Additionally, it counts on a new-car selling price of $107,657. Enter the purchase price, anticipated length of ownership, and yearly mileage estimate. The projected resale value for the BMW 7 Series can be determined using our depreciation calculator.
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Purchasing a sixth-generation BMW 7 Series has become the biggest heist of 2021 due to depreciation.
A secondhand one with fewer than 75k kilometers can now be found for as little as $20,000 in the year 2021.
It’s not surprising that as they accumulate kilometers, luxury cars lose a considerable amount of their original value given that they frequently come with a luxury price tag and demand intensive upkeep. Maserati is in the lead when it comes to depreciation, with Volvo coming in second with a 66% decline in resale value from the original sticker price after five years. BMW, though, was standing behind them.
The BMW 7 Series has the worst 5-year resale value of any automobile on the market, with an average decline in original sticker price of 72.6%, while the Maserati emblem may have the worse resale value. We’ll discuss the precise amount and whether or not that depreciation is advantageous for anyone trying to enter the market for luxury sedans, but first, we must inquire as to why.
Let’s find out if purchasing one of these secondhand luxury cruisers—the BMW 7 Series depreciates unlike anything else—will be the biggest robbery of 2021.
Calculator for Appreciation of BMW 7 Series
When brand-new, we calculated that BMW 7 Series cars depreciate by an average of 61 percent in the first three years. 92 percent of us are confident in our estimate.
Months:
To calculate the value loss for a new or used BMW 7 Series, 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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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.
BMW 7 Series Specs
The average five-year depreciation for the 2015 BMW 7 Series is 72.6%. Accordingly, if the typical cost of a new 7 Series in 2015 was $110,000, its current value is roughly $29,000. Not that the 7 Series is a poor automobile. In reality, it received a favorable review from U.S. News in 2019 for a used car, noting that “It features poised handling and a smooth ride.” According to the magazine’s review summary, the car performs admirably in the luxury automobile class thanks to its “large cabin, powerful engine lineup, and balanced handling.”
Whether a good car or not, the 7 Series rose to the top of this list for a number of reasons. The 2016 BMW 7 Series was completely revamped, first. It had updated interior and external aesthetics in addition to more standard equipment. In 2019, a brand-new 8 Series took the 7 Series’ place as BMW’s flagship vehicle. In terms of style, the 2015 BMW 7 Series is still current and offers a lot of vehicle for the money. However, used car purchasers seeking prestige are prepared to spend a little more to upgrade to a more recent 7 Series or a used 8 Series.
Why is the price difference so great?
The BMW 7 Series costs much less than a little older model for a very straightforward reason. It is within the luxury vehicle category. Even with a used automobile that is only a year old, owners won’t pay top dollar for equipment that is essentially obsolete. Each of these ultra-luxury automobiles receives the introduction of newer models of equipment every year. The previous model, so to speak, becomes the old maid of luxury cars once the new one is released.
Therefore, when those older models appear on the used automobile market, consumers who generally purchase these kinds of cars don’t find them as desirable. The price needs to be significantly reduced in order to attract a buyer. Even if the equipment is from last year, the significant discount of almost $47,000 attracts more customers.
The “Way of the Widebody” Rendering of the Chrysler 300C resembles a JDM muscle sedan.
The amenities and technology that make premium cars appealing when they are new are also their downfall. The Mercedes S-Class or BMW 7 Series might degrade to less than 10% of their initial worth because of this. Also, even if that sounds like an oversimplification, it might be the reason why Dodge is more fascinating than Chrysler.
The 2020 BMW 7 Series True Cost to Own covers finance, taxes, depreciation, and other costs.
Why do BMWs lose value so quickly?
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.
BMWs: Do they 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.
Has the BMW 7 Series been retired?
In 2023, BMW will replace its sixth-generation 7 Series, which has been on the market for seven years, with a completely new premium sedan. The new 7 Series is fully equipped with technology and sports BMW’s newest design language, which previews BMWs to come.
Is the 7 series being phased out by BMW?
The updated 2023 edition of the BMW 7-Series, which was introduced in April, marks the start of the car’s seventh generation. However, the semi-official BMW tuner has stated that the Alpina version won’t be back this time.
No explanation was offered, although it might be because BMW, which bought the Alpina brand in March, is getting ready to introduce its own high-performance 7-Series based on the most recent model of the flagship sedan. These include the i7 M70 xDrive electric car with more than 600 horsepower on tap and the M760e xDrive plug-in hybrid with 563 horsepower.
The final B7 has been put together, and according to an official statement on Facebook from Alpina Belgium, “the period of the BMW Alpina B7 is coming to an end in the Alpina vehicle manufactory.” Although the German manufacturer doesn’t explicitly state it, the news gives us the impression that no replacement is currently in the works. In fact, Alpina says it is now taking a “back at the intriguing automobiles which came about in Buchloe on the basis of the BMW 7 Series” look at the high-end sedan.
Early in 2019, the B7’s final edition was introduced, using a 4.4-litre twin-turbocharged V8 engine that produced 600 horsepower and 590 lb-ft (800 Nm) of torque. It can accelerate from 0 to 60 mph (96 km/h) in just 3.5 seconds and reach a mind-blowing top speed of 205 mph (330 km/h) with this incredible powerplant. For the B7, Alpina made changes beyond just the turbocharged V8 engine.
The most recent model also had a redesigned braking system with 4-piston fixed callipers coupled with 15.55-inch front and 15.67-inch rear discs, as well as an updated stainless steel sports exhaust system. Additionally, it has 20-inch wheels with Michelin tires mounted on all four corners, however 21-inch wheels are also an option.
What is the lifespan of a BMW 7 Series?
When properly maintained and driven, the BMW 7 Series should last approximately 200,000 miles, though they could theoretically last longer. A 7 Series should last you 13 years if you drive an average of 15,000 miles each year in the United States.
BMW 8 Series vs. 7 Series: Which is superior?
Overall, both vehicles produce 335 horsepower and more than 300 lb-ft of torque, which is pretty similar (331 for the 7-Series; 368 for the 8-Series). The 8-Series also accelerates from 0 to 60 miles per hour in 4.9 seconds as opposed to 5.3 seconds for the 7-Series.
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 BMWs so costly?
German motor industry behemoth BMW has a storied history spanning more than a century.
However, while being considerably more expensive than comparable Japanese manufacturers, BMWs are frequently thought of as being unreliable and difficult to repair.
BMWs’ design and construction are primarily to blame for their high price. BMW vehicles are built for luxury, elegance, and performance, like the majority of German automakers. Their luxury status, high-quality construction, safety, comfort, and well-tuned engines all contribute to their astronomical price tags.
Continue reading to learn why BMWs are so expensive, whether they are worth the money, and how much insurance you can expect to pay.