BMWs that won’t depreciate too fast

7-series, BMW M3, BMW X5 | March 2nd, 2015 by 13
BMW M3 sedan 03 750x500

When buying a high end luxury or performance car, depreciation is always a factor. No one wants to buy a $100,000 car just to have …

When buying a high end luxury or performance car, depreciation is always a factor. No one wants to buy a $100,000 car just to have it be worth less than half of that in five years. Depreciation alone is reason enough not to buy something like a Cadillac Escalade, which after five year will be worth less than a pencil sharpener.

So it’s good to do some research on the car you’re buying. Try and find used examples of the car you’re looking to buy, see how much they cost at five years old with average mileage.

Unfortunately, BMW isn’t among the better depreciating brands on the market. The 7 Series, for example suffers from awful depreciation. The current generation, F01 7 Series is one of the worst offenders. A Certified Pre-Owned, 2010 750Li xDrive with 26,000 miles and only one owner can be had for $40,998 or around $53,000 less than its starting price. That’s around a $10,000 per year loss on your car.

2013 bmw 750Li xDrive review 3.jpg 750x500

But not all BMWs are poorly depreciating cars. Some actually are quite good. The E92 M3 is one of them. This particular M3 I found is a 2011 sedan with 28,130 miles on it and a 6-Speed manual for $49,992. Being that a brand new M3 sedan starts at $62,000, that’s only around $12-15,000 (depending on options when new) of depreciation over four years.

2008 bmw m3 sedan front three quarter view1 655x380

That’s very good.

Another example of good value-holding is the 1 Series M. Not only do 1 Series M Coupes not depreciate very much, they can actually appreciate in value due to their rarity.

BMW-1M-Vorsteiner-05

A nice example of that is this 2011 Valencia Orange 1 Series M Coupe with 11,763 miles and it costs…$61,900. The starting price of a 1 Series M when new? $47,010. That’s almost $15,000 in appreciation. That’s one hell of a good value. Imagine being able to sell your sports car that you enjoyed for four years for more money than you paid? Your wife could never complain about you buying a sports car again.

Another BMW that holds is value quite well is the previous generation X5. A 2012 BMW X5 xDrive35d with 32,000 miles is listed for around $45,000. The MSRP in 2012 was $56,700 (invoice $52,000), so after three years, the premium diesel SUV is still worth quite a bit of money.

2012-bmw-x5-07

So while some BMWs are bad investments, some are actually quite good. Almost all cars are depreciating assets, so don’t expect your car to gain value unless it’s something rare, but it helps to know which cars minimize the damage.

13 responses to “BMWs that won’t depreciate too fast”

  1. Lawrence says:

    I think the 6 Series also suffers from tremendous depreciation. It would be great to have a look at the comparisons per class with BMW’s competitors. I think WhatCar compares that?

    • The 6 does suffer some pretty bad depreciation, especially the E63 version. You can buy decent ones now for just some pencil erasers and a paper clip it seems like.

  2. Rokie888 says:

    …how about Mercedes Benz S65AMG? Value retained after 5 years is 16% based on MSRP: $210000…but ..what an amazing car to have if you can afford owning one ( not the asking price, it’s the ownership cost…)

  3. Mike Vella says:

    This explains in start reality why CPO is the way to go overall.
    It’s fun to buy new and we all have, but honestly for that, leasing might be the best option for German cars. You’re always under warranty, and with BMW, you never have to pay for service..

  4. Autocar Wiki says:

    Wow The starting price of a 1 Series M when new? $47,010

  5. neng says:

    good article. I like it very much.
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    visit: http://www.autosbliz.com/

  6. janon says:

    You cant put “depending on options when new” in *parens* with the M3.

    M3 options *quickly* add up to $10k+ easily. Everyone quotes the *base* price of a new M3 (which no dealer EVER stocks or orders and nearly NO ONE special orders) and uses that as an indicator of what the car cost.

    That $49k used one probably cost that owner $72k OTD minimum. It’s more like $20k+ depreciation over 4 years.

    Just like the M4. Day and night you hear how the M4 is a “$60k car” on forums. Except it actually starts at $65k. And for that you get *cloth*. Add leather and you’re at $70k already. DCT and you’re at $74k. As ordered on 99% of dealer lots you’re at $77k+. And that’s how 99% of people will buy them. Yet in 4 years when they’re selling at $45k people will say “$60k to $45k! GREAT depreciation!!!!” um no.

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