Not all BMW M cars depreciate the same. Using fresh data from iSeeCars, we break down which high-performance models hold their value — and which ones drop like a rock. No one with any sense treats a car as an investment. But if you must throw your money into a depreciating asset, you might as well have some fun while you’re at it. At least, that’s the thinking BMW hopes for when you walk into the dealership considering a new vehicle. The most fun examples arguably sit at the top of the lineup — the vaunted BMW M Series models. Drawing on data iSeeCars has put together as of July 2025, we take a look at how each new BMW M vehicle depreciates. And, finally, review which ones perform the best and worst — financially speaking, anyway.
BMW M2
The BMW M2 depreciates 27.2% in the first three years. After five years, the car has lost, on average, 40.6% of its value. The car’s remarkably low depreciation is somewhat expected, given its good critical reception and wide fan base. We would be willing to bet that manual versions will hold value better over the long-term, but the data doesn’t break it down.
BMW M3
The M3 loses 24.4% of its value within three years of driving it off the lot. Fast forward to five years, and the high-performance sedan has lost 54.2% of its value. As the long-time grail of the BMW M Series lineup, we’re not too surprised to see solid residuals here. Retaining nearly half of its original MSRP after five years is an impressive feat.
BMW M4
Purchasing a new M4 Convertible? Your car will lose 32% of its value in the first three years. In five years, the M4 loses just over half — 50.1% — of its value. If you find that surprising, check out the numbers on the hardtop. New BMW M4 Coupe models lose 24.7 percent of their value within three years, and in five years the car will lose 44.1% of its value.
BMW M5
A new BMW M5 loses 41.7% of its value — a whopping $49,782 — after three years of ownership. In another two years that number climbs to 60%, or $71,707. The depreciation alone is more than the original MSRP of a new BMW M2! We are curious if the data is a mixture of early G90 sales and F90 sales or simply reliant on F90 prices. Either way, the M5 depreciates much worse than lower-tier models. Which, shouldn’t be a big surprise to anyone.
BMW M8
Like the M5, the BMW M8’s sky-high MSRP results in some truly astonishing figures. Three years after being purchased new, the M8 Gran Coupe will lose 41.5% — or $58,150 — of its value. In five years the car will lose $83,475, or 59.6% of the car’s original MSRP. Convertible models do a little bit better. They lose 38.6% of their value in the first three years and 54.5% in the first five years. Finally, we have the BMW M8 Coupe. It fares the best, losing 38.4% of its value in the first three years. After five years, residual value has crept down by 51.7%, which is considerably better than the other two body styles.
BMW X3 M
One of the coolest SUVs ever is also one of the better ones at holding value. The X3 M loses 33.2% of its value over the first three years. After five years, the super SUV will have lost 52% of its value. That’s not quite as good as the M3, but it’s pretty darn close. Such a shame that the SUV won’t be making a return for the next generation.
BMW X4 M
Despite being mechanically identical to the X3 M, the BMW X4 M loses a tad bit more value. Chalk it up to a more polarizing silhouette. The first three years of life depreciate the X4 M by 34.3%. After five years, that number grows to 53.3%. Like the X3 M, 2025 was the last model year for the BMW X4 M and there’s no replacement in sight.
BMW X5 M
The mighty X5 M loses 37.5% of its value in three years. After five years, the SUV has lost 56.3% of its value. That’s not terrible when you consider the car’s six-digit price tag and nearly 620 horsepower. Defying physics has never been more financially viable.
BMW X6 M
Decidedly not following the precedent set by the X4 M, the BMW X6 M fares slightly better than its more traditionally-shaped counterpart, the X5 M. But only in the short term, where it sees 37.2% depreciation. After five years, the the X6 M loses just slightly more value, 56.5%. Both terms are likely as near as makes no difference for prospective buyers, as both of these monsters powered by the S68 engine command a ton of cash.
BMW XM
The BMW XM takes the crown when it comes to sheer numbers. After three years, value holds shockingly well, only down 44.6% from when it was new. But that equates to over $71,000 in value, which is a ludicrous number. Even more ludicrous is the five-year residual, which will be 61.1% lower than the car’s original MSRP. That represents a whopping $98,075 drop in value. That’s more than nearly half of the cars on this list originally retailed for, perhaps best illustrating just how frighteningly expensive the BMW XM is.
The Winners and Losers
According to the data, the BMW M3 depreciates the least in the first three years out of all BMW M Series vehicles. Losing under a quarter of its value (24.4%) is impressive for any vehicle, but especially a luxury/performance sedan. Of course, it’s not the most unpredictable result, as the M3 has been a mainstay of the brand for literally decades — and a polarizing grille isn’t enough to take away that heritage. Over five years, the BMW M2 holds value best, losing a mere 40.6% of its original value. Notably the M4 Coupe comes pretty close, only losing 44.1% of its value after five years.
The worst depreciation, predictably, faces the high-dollar M Series models. The BMW XM and M5 lead the charge, seeing a 61.1% and 60% dip in value, respectively. It’s also worth noting that both models offer true plug-in hybrid powertrains; the only models here that do so. It likely isn’t a direct correlation, with both touting mid-$100,000 price tags that likely contribute much more to the steep depreciation. Of course, these models also see high lease take rates, so many drivers are unlikely to even have to consider depreciation, as BMW sets their own residuals which likely won’t mirror the data iSeeCars has.
While we’re sure most customers are acutely aware of the depreciation pitfalls BMW M models face, there were some surprises here. Pleasant ones, even; the BMW M4 Coupe (both body styles) retains over half its value over five years.
Source: iSeeCars
