Why Do BMW 7 Series Depreciate So Much?

Although the S-Class does, as previously mentioned, retain its value a little bit better than the Bimmer, if you have your heart set on a used 7-Series, you’ll want to carefully weigh your options and, in particular, what you’re ready to give up. The better, the simpler.

To begin with, the xDrive system, which is BMW’s take on AWD, adds another layer of complexity and upkeep. The engines are the next. Although the V8 gurgles are fantastic, the two more pistons will cost you more. In other words, regardless of how much the BMW 7 Series depreciates, maintenance costs and resale value will eventually make up for it. It ultimately boils down to choosing the 7 Series with the lowest upfront cost, which happens to be the 740i. It is possible to find models with considerably under 50k miles for under 40k, with some even going as low as 20k. Although it might not be the most thrilling 7 Series money can buy, it might be your best option unless you want to spend $150k on a brand-new V-12 BMW M760i.

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.

A BMW 7 Series will lose 53% of its value and have a $50,297 resale value after 5 years.

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.


Decreasing Value Of BMW Models

That, however, does not fully convey the situation. Of course, there are other models available within the BMW group. Some of these models lose value far more quickly than others. Therefore, we compared the depreciation of 15 of the most popular BMW models over a ten-year period.

The 2-series, 4-series, and 7-series lose value far more quickly than other BMWs in the first year. In the first year, these models respectively lose 25%, 26%, and 27% of their value. The 3-series, X3, and X7, on the other hand, lose value at rates of 19%, 19%, and 15% less than other BMWs.

The Z4 and 7-series have the weakest performance after five years. They have each lost 52% and 54% of their original worth. The M2, X3, and X7, on the other hand, surpass the other BMWs because they have only decreased in value by 39%, 39%, and 33%, respectively.

The 7-series, M5, and X5 have had the worst performance after ten years. 83%, 83%, and 81% of their original worth have been gone. The best-performing models, on the other hand, are the 2-series, M2, and Z4, which have ‘only’ lost 68%, 60%, and 69% of their value.

Problems with the BMW 7 Series? Rate of Depreciation

One response to the question “does the BMW 7 Series have difficulties” is that it depreciates quickly. High-end sedans like the BMW 7 Series are known for their luxury, dependability, and technology. Purchasing something new can be enticing if you want something that you won’t have to worry about repairing anytime soon. One of these new versions, though, is exceedingly pricey.

The starting price of the 2021 BMW 7 Series is $86,800, which is approximately typical for the segment. However, the cost soars to $157,800 for the powerful M760i variation and to $103,000 for the sportier model 750i.

You may save 43.4 percent by buying a gently used BMW 7 Series as opposed to a new one. According to the data on a car that is only a year old, you will save $47,000 compared to purchasing new. That is how much the value of the BMW 7 Series will decrease after just one year of ownership. Given its depreciation rate, you should obviously give these factors significant thought if you want to purchase a brand-new BM7 7 series.

Why is the price difference so significant? Why the BMW 7 Series costs so much less than a little older model is simple to comprehend. It is regarded as a luxury vehicle. Even when a secondhand car is only a year old, buyers are unwilling to pay top cash for technology that is nearly obsolete.

Why does BMW wear out 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.

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.

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.

Is the 7 series being phased out by BMW?

After six generations, the BMW 7 Series-based Alpina B7 has been discontinued and won’t be replaced. The revised 2023 BMW 7-Series enters its seventh generation; nevertheless, the semi-official BMW tuner has stated that an Alpina version won’t be available this time.

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.

What BMW 7 Series has the most power?

The new generation 7 Series’ front end may be seen in a photo released by BMW. By the end of this year, sales will begin.

According to CEO Oliver Zipse, the full-electric version of BMW’s new 7 Series sedan would produce more than 600 hp, outperforming the plug-in hybrid, gasoline, and diesel models in terms of power.

The electric model will be known as the i7 in keeping with the brand’s most current naming scheme.

At the BMW Group’s annual news conference on Wednesday, Zipse announced that the newest version of BMW’s flagship 7 Series would be unveiled on April 20 at the Beijing auto show.

According to Zipse, new engines will be built for internal combustion versions to meet the Euro 7 emission rules, which are anticipated to be published this July.

“The next ace in our successful growth plan in the luxury class,” he said of the new 7 Series.

By year’s end, the new model, which is already in pre-production, will be available for purchase.

The car’s front end, which has broad, squared-off “double kidney” grille like that of the iX full-electric big SUV, was unveiled by the manufacturer on Wednesday.

Images from BMW’s winter testing of the disguised i7 reveal the sedan’s large hood and wheelbase.

The vehicle’s chief technical officer, Frank Weber, displayed a number of interior elements, including a 31-inch high-definition screen for the backseat passengers that folds down below the front headrests and is hinged at the roof. A glance at the dashboard area revealed a simple layout similar to the iX.

At launch, the 7 Series will provide so-called “Level 2 plus” driving aids.

In line with the Mercedes-Benz S-Class, BMW claims that Level 3 hands-free driving will be possible.

The latest iteration of the rear-wheel-drive/all-wheel-drive CLAR platform will serve as the foundation for all of the new 7 Series’ drivetrains, which will all share a similar body design.

Longtime rival Mercedes has decided to electrify its top-of-the-line sedans in a different way. The conventional S Class includes internal combustion engines, including a plug-in hybrid, whereas the fully electric EQS has a unique body design and employs a distinct platform.

According to data from Dataforce, the Porsche Taycan outsold its internal-combustion rival, the Panamera, by more than three times last year, making it the best-selling vehicle in its market in Europe with 17,106 sales (see chart, below).

With 11,219 sales, the S Class came in second, and the outgoing 7 Series took third with 5,531 sales.

With 1,333 sales, the EQS, which debuted in late 2021, tied for ninth place with the Mercedes AMG GT four-door. With only 160 sales, the outdated Tesla Model S, which topped the charts in 2017 and 2018, dropped to the 10th position. The Model S was third as recently as 2020.

The i7 will be one of 15 fully electric vehicles, including prototypes, that BMW claims will be produced by the end of 2022.

BMW estimates that by 2030, 50% of all sales will be fully electric, though Zipse indicated on Wednesday that the company was working hard to meet that target sooner. In accordance with how infrastructure and the availability of raw materials for batteries evolve, he predicted that by that year, the group’s EV sales may reach 1.5 million yearly.