Why Do BMW 5 Series Depreciate So Much?

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.

A BMW 5 Series will lose 45% of its value after five years and will be worth $35,308 at that point.

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.



BMW likes to price its vehicles rather high out of the gate, but any vehicle will quickly lose value. A 2013 Elantra that my mother purchased brand-new cost about $20,000 at the time. The automobile is currently worth roughly $10,500. Although I’ve said it a lot on this site, I’ll say it again. Compared to all other vehicles on the road, BMWs are not very expensive to maintain. All vehicles require routine maintenance, but some are so ridiculously dependable that any moron could drive them for 150,000 miles with no repairs. The difference is that the engines in these more expensive cars are more sophisticated and cannot withstand the abuse from ignorant or careless drivers. Some people have to pay more since they have to go to the dealer for everything, and BMW shops are notorious for charging too much for maintenance. They won’t be as inexpensive and simple to work with as, say, your Honda dealer. Sorry, I’ll stop now.

The underlying cause is that BMWs and Mercedes are popular for 3-year leases, which results in an excess of

Children under 3 are turned in (most likely for a new model). so if you purchased a BMW three years

a long time ago and try to sell it now, you’ll find that there is a lot of competition from these turned in

rented automobiles. They typically have low mileage and require maintenance.

outlined in the lease’s conditions. What is the solution? The reason why is because automobiles

Investments all lose value over time, though some do so slightly faster than others. The top automobiles for

Trucks have a higher resale value than cars or SUVs. the Toyota Tundra and Ford F150

5 Series BMW

The second-place finisher is another another BMW vehicle. One of the most well-liked BMW cars in the lineup is the 5 Series. It’s also one of the models with the fastest depreciation rates, according to iSeeCars.

The painful depreciation rate for the BMW 5 Series over a five-year period is 70.1%. That is a decrease from the original value of around $47,038. Although it’s a fantastic car, customers might decide to purchase it used instead.

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.

Do BMW 5 Series maintenance costs cost a lot?

During its first ten years of use, a BMW 5 Series will require maintenance and repairs that total roughly $13,530.

This is $1,569 above the industry average for models of luxury car. Additionally, there is a 40.39% likelihood that a 5 Series will need a significant repair at that time. This performs 0.83% worse than comparable cars in this category. The following graph shows how these expenses and the likelihood of repairs will rise over time.

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.

How durable is a BMW 5 Series?

A 5-series is a vehicle to take into consideration if you’re shopping for a high-end sedan. As we have seen, the 5-series has a 195,000-mile theoretical lifespan. The vehicle might last 13 years if you drive an average of 15,000 miles every year.

Additionally, the automobile performs on par with its rivals, which is also a good indicator. When we contrast the 5-series with other BMWs, the same thing holds true. The 5-series is then revealed to be probably one of BMW’s best vehicles right now. Additionally, owners love the vehicle, giving it an 8 or 9 out of 10.

Finally, if you choose a sixth- or seventh-generation model, the 5-series is a relatively trouble-free vehicle. While certain sixth-generation vehicles weren’t ideal and some fifth-generation models had their fair share of issues, this wasn’t true of the entire generation and only applied to specific models.

Are 5 series BMWs trustworthy?

Is a pre-owned BMW 5 Series sedan trustworthy? With a 96.9% dependability rating, our most recent reliability data paints a favorable picture of petrol 5 Series cars. Diesel models appear to be more problematic, achieving just 89.1%. The brand BMW was ranked 13th out of 30 manufacturers in the same survey, which is respectable.

Why is the resale value of 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.

Are BMWs too expensive?

Compared to other executive German automobile companies like Audi and Mercedes, BMWs are not pricey. Due to pricing competition amongst these manufacturers, BMW must continue to be competitive.

BMWs are priced similarly to other premium manufacturers that are likewise famous for their quality, comfort, and performance when compared to their competitors. They are frequently less expensive than some other high-end European manufacturers, such as Jaguar and Maserati, nonetheless.

The company uses high-end components and cutting-edge design to justify its price tags, and it keeps developing its vehicles at the rate of an innovative, forward-thinking corporation.

BMW continually adds new models to its lineup, innovates, and invests in cutting-edge technology. This enables the German manufacturer to keep its automobiles appealing and maintain their appeal as luxurious vehicles with each new generation.

Is the BMW Series 5 or 3 superior?

The choice between the BMW 3 Series and 5 Series will depend on your needs and budget since they are in distinct market groups.

The 3 Series is the ideal vehicle if you’re looking for something more youthful and sporty yet have a limited budget.

The BMW 5 Series is a better option if you have a little more money to invest and prioritize room and pure luxury over all other factors.

What year of the BMW 5 Series is the most dependable?

year for the BMW Series 5 The sixth generation of BMW’s Series 5, which was sold from 2010 to 2016, is our choice for “best.” Sixth generation models included the 528i and 535i. Both offer fantastic overall value for the money and are excellent choices if you’re looking for a pre-owned BMW.

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.

What BMW Series maintains 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.