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.
In This Article...
Eco-friendly rubber
The German government’s requirement that all domestic automakers use biodegradable rubber is one of the main causes of the rapid depreciation of BMWs. These rules are adhered to by all of Germany’s major automakers, including Porsche, Volkswagen, Opel, BMW, Audi, Mercedes-Benz, and others.
Although it has been forbidden, synthetic rubber has a significantly longer lifespan than ten years. Numerous components on a typical BMW tend to fail after a few years of operation because of the degradable rubber utilized in their construction. One of the key causes of used BMWs breaking down so quickly is because its plastic components are biodegradable rather than manufactured.
German engines would likely be unstoppable and extremely durable if they were constructed with the same rubber components as Japanese or American vehicles.
Summary
An automobile’s value typically declines over time. BMWs, on the other hand, experience a far faster and more severe loss in value than other makes of cars. As a result of German government regulations, biodegradable rubber might be a factor. There are a variety of reasons why BMWs depreciate so quickly. As a result, you must take into account each car’s depreciation value before making a purchase.
It will be simpler to sell the car if you take this action. When buying a vehicle, take depreciation into consideration.
Answers
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
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.
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.
Why do people continue to buy BMWs?
One word keeps coming up when discussing what makes the BMW brand so well-known: performance. BMW is the sporty luxury brand that is enjoyable to drive since power and performance are linked with the company. Some claim that only BMW can provide pure driving enjoyment.
All models are created with performance in mind, whether it is through the company’s focus on weight distribution, the typical rear-wheel drive, or the more sensitive steering. Both the engines and the transmissions are intelligent, providing rapid acceleration, a strong response, and seamless shifting. Contrary to most, these vehicles hug the road and curve around corners. Additionally helpful is the blue and white badge’s reputation.
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.
Holding their value, do BMWs?
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.
The BMW that retains its value the best
The BMW M3 has the highest resale value among all luxury vehicles. IntelliChoice predicts that the renowned performance model of the BMW 3 Series will hold on to 56.5 percent of its original value after five years of ownership.
Despite its unattractive exterior (really, BMW, what were you thinking when you designed that grille? ), the new G80 generation M3 has excellent handling. It will reach 60 mph in Competition mode in 3.5 seconds. The M3 is, however, entirely focused on handling. Compared to previous M3s, the front end is astonishingly grounded, and the dynamic balance is more neutral. It may be the best M3 yet as long as you don’t need to see it; grip and overall performance are excellent.
Audi or BMW, which keeps its value better?
According to Darryl Jacobson, managing director of True Price, BMW automobiles have the lowest resale value, Mercedes-Benz vehicles are the best, and Audi vehicles fall right in the middle of the two main German automakers in terms of resale value. His conclusions are supported by an examination of True Price data.
Is BMW prone to breakdowns?
Although statistics show that BMWs are statistically less reliable than average, problems can be significantly decreased by adhering to regular maintenance schedules and by resolving faults as they emerge.
While there is a lot of anecdotal evidence to support the notion that BMWs have issues, one thing is undeniable: statistics indicate that they are less reliable than many other automobile brands overall.
These figures demonstrate that new cars can also be unreliable, not just used BMWs. However, they are typically below average rather than at the bottom of the reliability rankings.
However, gauging reliability just through data can be challenging. There are many examples of BMWs that have been completely reliable for many years and across many thousands of kilometers, so utilizing just one straightforward measurement does not give the whole story.
A BMW: Is it worthwhile?
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.
Are BMWs with high mileage worth it?
In order to wrap up this article, let’s review everything we’ve covered. In general, BMW vehicles get good gas mileage. They typically reach their maximum range of 150–250,000 miles. Therefore, anything in the range is considered to have a mileage that may be too high to justify owning the car. But when they reach 60–80,000 miles, the majority of BMWs fall into the high mileage category. Therefore, it is clear that there is still a long way to go before you reach the “too high” point.
With all of that in mind, purchasing a high mileage BMW might be a wise financial move because you’ll receive a great car that’s dependable, has plenty of miles remaining in the tank, and is much less expensive.
I’m Scott, a huge fan of BMWs and a long-time owner of these incredible vehicles. I’m here to chronicle my encounters with BMWs over the years and, hopefully, to be of use to others.