Depreciation can be a bitch. Pardon my French, but it’s true. When buying a new car, you must know that the moment you drive your shiny new wheels off the dealer lot, it loses an almost frightening amount of its value. But we already know this, cars are quite possibly the worst investment possible, especially high-end luxury cars. For some reason, the value of 7 Series’ and S Classes drops dramatically almost immediately after the purchase. But sometimes this can be a good thing. For the second buyer, that is.
See, the original buyer must take that depreciation hit while the second buyer reaps the benefits of buying a very nice, and probably still very new, car for less than half of what it was previously worth. For the second buyer, it has to feel like a win. It’s almost unfair. Almost.
When learning about this sort of car buying, it almost seems silly to buy brand new, unless you get a crazy good deal. Because, when buying any new car, there’s always going to be something nicer and more upscale for sale on the second hand market at equal value of the brand new car you’re test driving. For example, a moderately equipped BMW 328i sedan gets into the low $40,000 range incredibly easily. For a brand new car, in comparison to other cars in the segment, that’s not bad. However, when you look at what you can get for the same money on the second hand market, that perception begins to skew.
For the same price as a decently equipped 328i, you can get this Certified Pre-Owned 2011 BMW 750Li with only 31,000 miles. That’s right, you can either get a brand new four-cylinder, midsize sedan, or you can have a full size sedan with a twin-turbo V8, million-way memory seats, lane departure warnings, a heads-up display, sat-nav, rear climate control and an elongated wheelbase. The best part is that it still comes with a BMW CPO warranty, which is the best in the business.
The F01 7 Series isn’t the best looking 7er of all time, but it’s still a great looking car overall. The interior is first-class all the way, with some incredible luxury features. This particular model has the long wheelbase, so rear passengers can ride in supreme comfort in perfect cabin temperature controlled via the rear climate controls. This is one of the better CPO deals I’ve seen in a long time, and makes you stop and consider buying something less opulent but brand new.
Now obviously, someone shopping for a 3 Series is more into performance and handling and would probably not want a massive luxo-barge. And obviously, the maintenance on a slightly older 7 Series is going to cost a fortune in comparison to the little 3er. But the value per dollar on both cars is pretty staggering in comparison. So which would you rather have, a moderately equipped 328i or a loaded, but slightly older, 750Li?