2010 2011 BMW 5 Series Forum F10
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
 

2010 2011 BMW 5 Series Forum F10 BMW 5-Series (F10) Forums General 5-Series Sedan and Wagon (F10 / F11) Forum Crazy depreciation
Post Reply
 
Thread Tools Search this Thread
      07-27-2020, 03:56 AM   #1
khanmohammed
Second Lieutenant
khanmohammed's Avatar
United_States
30
Rep
218
Posts

Drives: BMW 528i
Join Date: Oct 2019
Location: IL

iTrader: (0)

Crazy depreciation

BIMMERPOST
     Featured on BIMMERPOST.com
I own a 2016 BMW 528i, which has every package on it except the M-Sport and the Cold weather. But I've added the m sport wheel and heated steering. MSRP on it is $64,000 and it's at about 40k miles. Was looking at the value of it now and it looks like I would only get $26k??? No accident or damages at all and i am the second owner so I don't understand how the 528i depreciates so much.
Appreciate 0
      07-27-2020, 04:19 AM   #2
Cvx5832
Private
24
Rep
57
Posts

Drives: Ď15 535i M-Sport
Join Date: Jul 2018
Location: Walnut Creek, CA

iTrader: (0)

Welcome to the brand. Itís just the way it is and if you buy used like most of us, itís what makes a BMW a great buy.
__________________

Appreciate 0
      07-27-2020, 04:40 AM   #3
lsturbointeg
Lieutenant General
lsturbointeg's Avatar
United_States
8765
Rep
14,476
Posts

Drives: 2011 535i Jet Black
Join Date: Aug 2014
Location: Asian lost in OH

iTrader: (0)

yup! been like this since a decade ago!!!
__________________
~F90Conversion~21"3Piece Forged AvantGardeWheels~KWV1Coilovers~CQUENCE slotted/drilled rotors~GoodridgeStainlesslines~MeisterschaftQuadEx haust~Akrapovic 4"tips~VRSF DP~VRSF CP~TurboSmart BOV~K&N filter~CarbonFiberExteriorComponents~GladenAlphaCo mponents~MatchUp7BMW~Punch P300-12T~
Follow me on Instagram: lsturbointeg
Appreciate 0
      07-27-2020, 08:28 AM   #4
philipm785
Second Lieutenant
75
Rep
245
Posts

Drives: 2016 550i
Join Date: Jul 2015
Location: Atlanta, GA

iTrader: (0)

I know this can be a very unpleasant surprise. When I bought my CPO 2016 550i, I paid less than 50% of the retail price despite the car being only 2.5 years old with 34k miles. Unfortunately most luxury brands have gone this way in recent years for a variety of reasons including heavy use of leasing for the first 2.5 - 3 years and concerns about medium term maintenance costs. Mercedes is the same way. Porsche is better, but only on certain models.
Appreciate 0
      07-27-2020, 08:58 AM   #5
AmooManiak
Major
526
Rep
1,482
Posts

Drives: 21 X5 M50i -> M2C -> 21 M5C
Join Date: Aug 2016
Location: Illinois

iTrader: (0)

Sounds about right. Something to keep in mind with car buying (and selling) is that packages don't mean as much when you trade in as when you buy. Learned it the hard way when I bought an Audi prestige, where the resale value for a prestige was almost identcal to a Premium (lowest package), even though it cost almost 10k more when I bought it new.

They have you by the balls either way.

1. If you buy/lease, you will pay premium up front but have the assurance of a warranty and most things being covered.
2. If you buy CPO, you will definitely pay more than what you can get it for on a used car lot outside of the BMW dealership to get that extra assurance.
3. If you buy non-BMW used, you will get a similar package for much cheaper, but you need to keep in mind that it's not a question IF it will break, but WHEN - so don't complain about having to pay for expenses.

One thing I don't understand is owners who buy a car for 1/3 of the cost of what it was new that has known issues, and then whine about having to get it fixed. Either buy new or have 10k laying aside for those extra fixes. It takes $ to maintain these cars.

Last edited by AmooManiak; 07-27-2020 at 09:05 AM..
Appreciate 0
      07-27-2020, 09:58 AM   #6
Trainwreck914
Lieutenant
Trainwreck914's Avatar
United_States
105
Rep
421
Posts

Drives: BMW F10 F15 E39 E90 E53
Join Date: Dec 2019
Location: NY CT

iTrader: (0)

I have a stable of bmw's. I just love these cars. They're awesome so long as they're working and you stay on top of them. I do all my own wrenching. So it's just a matter of the parts cost. I pick them up for cheap. Find out what they need and properly maintain/enjoy them. Plus, I'd rather drive a used bmw than a new Toyota. No offense Toyota as I also own a tundra and a Yaris that I rent out for side cash. I'm thankful that I'm gifted with the ability to wrench. But yeah. Welcome to the brand...
Appreciate 0
      07-27-2020, 11:46 AM   #7
ezaircon4jc
Brigadier General
United_States
1481
Rep
4,148
Posts

Drives: 2019 540i M Sport
Join Date: Jan 2015
Location: San Diego

iTrader: (0)

Very few cars appreciate, 99.9999% DEpreciate. One should never purchase a car based on what it may or may not be worth in the future. If resale is the concern, then leasing may be the way to go: assuming not an outright buy, in which case depreciation shouldn't matter as the car should be kept for many years. I've been out of the new car purchase business since I retired so am more than happy to purchase used and let the original owner take the hit. I also keep my cars until it's no longer economically viable or the parts become unavailable. By the time I move on the car has usually reached the bottom of the depreciation scale.
Appreciate 1
BigKutta3291.00
      07-27-2020, 11:51 AM   #8
OnlyGerman
Major
OnlyGerman's Avatar
271
Rep
1,087
Posts

Drives: F15, F10, E60
Join Date: Jul 2019
Location: Sunshine State

iTrader: (0)

This is why you buy used
Appreciate 0
      07-27-2020, 11:57 AM   #9
ramman434
Lieutenant
United_States
657
Rep
523
Posts

Drives: F30 335i
Join Date: Dec 2012
Location: Fort Lauderdale, FL

iTrader: (0)

I bought my '16 535i full loaded with all the goodies except sports seats & rear entertainment, with 60k mi, for far less than that. I always buy used, and I'm now the 2nd owner.
__________________
'07 Montego Blue E92 335i - 6spd. Weiss Licht Angel Eyes, AFE DCI, Vishnu 3.5 - SOLD
'16 Carbon Black Metallic F10 535i M-Sport - eBay Special Strut Bar, CF M4 Mirror caps: TOTALED 11/21/21
'13 Black Sapphire Metallic F30 335i M-Sport - unknown charge pipe, MSport Exhaust, 20" 405M wheels, Tech, Driving Ass. (+), Dynamic Handling, Rear Sunshades
Appreciate 0
      07-27-2020, 03:20 PM   #10
beegeezy
Second Lieutenant
beegeezy's Avatar
58
Rep
207
Posts

Drives: 2013 535i M-Sport
Join Date: Jan 2020
Location: New Orleans

iTrader: (0)

The massive depreciation, vast amount of DIY info and parts availability, modifications, forums, and the value as a used car of a new economy car is what attracted me to BMW. Do the maintenance and repair work yourself, and itís a fantastic brand IMO.
Appreciate 0
      07-27-2020, 05:11 PM   #11
Nickco43
Lieutenant Colonel
Nickco43's Avatar
1205
Rep
1,817
Posts

Drives: 13 BMW 335i xDrive
Join Date: Apr 2018
Location: Philadelphia, PA

iTrader: (0)

Garage List
I paid $9500 for my car with a little under 100k on the clock. Even once I get out of University I am only going to buy 20-25k used cars. I can stomach a bit of depreciation but not 30k every few years.
Appreciate 1
      07-27-2020, 05:21 PM   #12
AmooManiak
Major
526
Rep
1,482
Posts

Drives: 21 X5 M50i -> M2C -> 21 M5C
Join Date: Aug 2016
Location: Illinois

iTrader: (0)

If you are buying cars that depreciate 30k every few years, then you should definitely lease. You can lease a new 5 series for that kind of money with a peaceful mind.
Appreciate 0
      07-27-2020, 06:39 PM   #13
AussieBob
Private
58
Rep
72
Posts

Drives: 2010 F10 "M5"
Join Date: Sep 2018
Location: Australia

iTrader: (0)

Well at least one of mine is appreciating!

Asking prices are now double what I paid for it 14 years ago. And the S50B30 Euro engine and 5-speed manual gearbox still puts a massive smile on my face (even massive'er now that I've seen the current selling prices).

Name:  M3 1994 3.0L 5-speed.JPG
Views: 426
Size:  262.1 KB
Appreciate 0
      07-27-2020, 07:35 PM   #14
ezaircon4jc
Brigadier General
United_States
1481
Rep
4,148
Posts

Drives: 2019 540i M Sport
Join Date: Jan 2015
Location: San Diego

iTrader: (0)

Quote:
Originally Posted by AussieBob View Post
Well at least one of mine is appreciating!

Asking prices are now double what I paid for it 14 years ago. And the S50B30 Euro engine and 5-speed manual gearbox still puts a massive smile on my face (even massive'er now that I've seen the current selling prices).

Attachment 2374724
Yeah..... But the steering wheel is on the wrong side!!!!
Appreciate 0
      07-27-2020, 07:48 PM   #15
Unspec
Colonel
Unspec's Avatar
United_States
815
Rep
2,196
Posts

Drives: 2015 BMW 535xi
Join Date: Apr 2019
Location: New Jersey

iTrader: (0)

Quote:
Originally Posted by AussieBob View Post
Well at least one of mine is appreciating!

Asking prices are now double what I paid for it 14 years ago. And the S50B30 Euro engine and 5-speed manual gearbox still puts a massive smile on my face (even massive'er now that I've seen the current selling prices).

Attachment 2374724
Assuming that's after adjusting for inflation, that's pretty impressive.
__________________
2015 BMW 535xi
Bootmod3 Stage 2 | ER charge pipe | ER Catted DP | Remus Exhaust | Gplus FMIC | KW V3 | Turner Monoball thrust arm bushings | Wallet regrets
ISTA VM Setup/Tutorial
Appreciate 0
      07-27-2020, 07:57 PM   #16
jarsdad1
Private First Class
52
Rep
168
Posts

Drives: 2011 535i, 2015 X1 3.5
Join Date: Oct 2016
Location: Philadelphia, PA

iTrader: (0)

Don't feel bad. I looked at a 2017 740 i x-drive, 32k mi CPO for $35,999. Originsl MSRP was $94,800.
Appreciate 1
      07-27-2020, 07:59 PM   #17
Qsilver7
Brigadier General
Qsilver7's Avatar
United_States
2104
Rep
4,183
Posts

Drives: F06 650ix GC / F15 X5 50i
Join Date: Oct 2016
Location: Indiana, USA

iTrader: (0)

Quote:
Originally Posted by khanmohammed View Post
I own a 2016 BMW 528i, which has every package on it except the M-Sport and the Cold weather. But I've added the m sport wheel and heated steering. MSRP on it is $64,000 and it's at about 40k miles. Was looking at the value of it now and it looks like I would only get $26k??? No accident or damages at all and i am the second owner so I don't understand how the 528i depreciates so much.
How much do you think it should go for (this is a rhetorical question)? Because what ever the price you think it is...compare that price for to what you could buy new that has a full warranty.

Anyone that could afford to pay that price...will more than likely choose to spend that money on a new car and not an old car with 40k miles on it and no warranty. Itís economics 101.

For those of us tha take the leap and buy used BMWs after the original owner has taken the depreciation hit are a smaller minority of buyers. I got y f06 650ix GC for approx 75% off it original MSRP of $104,000.00...and just picked up a f15 X5 50i for approx 70% off its original MSRP of $85k.

Again, the prices drop like a rock on luxury automobiles until you can find a buyer that is willing to take on the maintenance & upkeep (which is still in the high luxury bracket)...but costs about the same youíd pay for a well equipped new Toyota/Honda/GM/Ford/etc product that has a 3/4 year full warranty.

Itís a gamble, but if you select wisely...you can have a very nice vehicle for way less than it originally cost to get one. I also tend to keep vehicles for long periods of time. The longest Iíve kept in the fleet was my 1985 BMW 325e (14 years) and my 97 e38 740iL (15 years).
__________________
2013 F06 650ix Gran Coupe`| 2014 F15 X5 50i MSport

Become a BMW CCA member! Click HERE to join and feel free to use my BMW CCA member #191509 as a referral.
Appreciate 0
      07-27-2020, 08:49 PM   #18
khanmohammed
Second Lieutenant
khanmohammed's Avatar
United_States
30
Rep
218
Posts

Drives: BMW 528i
Join Date: Oct 2019
Location: IL

iTrader: (0)

Quote:
Originally Posted by Qsilver7 View Post
Quote:
Originally Posted by khanmohammed View Post
I own a 2016 BMW 528i, which has every package on it except the M-Sport and the Cold weather. But I've added the m sport wheel and heated steering. MSRP on it is $64,000 and it's at about 40k miles. Was looking at the value of it now and it looks like I would only get $26k??? No accident or damages at all and i am the second owner so I don't understand how the 528i depreciates so much.
How much do you think it should go for (this is a rhetorical question)? Because what ever the price you think it is...compare that price for to what you could buy new that has a full warranty.

Anyone that could afford to pay that price...will more than likely choose to spend that money on a new car and not an old car with 40k miles on it and no warranty. It’s economics 101.

For those of us tha take the leap and buy used BMWs after the original owner has taken the depreciation hit are a smaller minority of buyers. I got y f06 650ix GC for approx 75% off it original MSRP of $104,000.00...and just picked up a f15 X5 50i for approx 70% off its original MSRP of $85k.

Again, the prices drop like a rock on luxury automobiles until you can find a buyer that is willing to take on the maintenance & upkeep (which is still in the high luxury bracket)...but costs about the same you’d pay for a well equipped new Toyota/Honda/GM/Ford/etc product that has a 3/4 year full warranty.

It’s a gamble, but if you select wisely...you can have a very nice vehicle for way less than it originally cost to get one. I also tend to keep vehicles for long periods of time. The longest I’ve kept in the fleet was my 1985 BMW 325e (14 years) and my 97 e38 740iL (15 years).
I bought it last year at 26k miles for $25k on auction. But these should be valued at atleast $34k
Appreciate 0
      07-27-2020, 09:37 PM   #19
walmark
Apprentice
walmark's Avatar
60
Rep
463
Posts

Drives: 550i F10 '15
Join Date: Feb 2013
Location: SF Bay

iTrader: (2)

Quote:
Originally Posted by philipm785 View Post
I know this can be a very unpleasant surprise. When I bought my CPO 2016 550i, I paid less than 50% of the retail price despite the car being only 2.5 years old with 34k miles. Unfortunately most luxury brands have gone this way in recent years for a variety of reasons including heavy use of leasing for the first 2.5 - 3 years and concerns about medium term maintenance costs. Mercedes is the same way. Porsche is better, but only on certain models.
I bought a '15 550i with almost all the packages (ACC, B&O, rear steering; everything except 4 zone, rear entertainment and night vision) last year. MSRP was ~$92k!
After 4 years and 45k miles I paid $26k at Carmax 🤣 I did throw Maxcare warranty on top of it because, you know, not crazy 😉
Appreciate 1
      07-27-2020, 11:10 PM   #20
ezaircon4jc
Brigadier General
United_States
1481
Rep
4,148
Posts

Drives: 2019 540i M Sport
Join Date: Jan 2015
Location: San Diego

iTrader: (0)

Quote:
Originally Posted by khanmohammed View Post
I bought it last year at 26k miles for $25k on auction. But these should be valued at atleast $34k
Not for a 4-banger...
Appreciate 0
      07-28-2020, 10:10 AM   #21
Pierre Louis
Captain
United_States
125
Rep
842
Posts

Drives: 2016 535d
Join Date: Apr 2012
Location: Savannah GA

iTrader: (0)

I had a 3 year window of years to buy a 535d and chose to get a new leftover for essentially a used price, which later became even better with the $1,000 BMW CCA rebate and with the lease buyout discount from BMWFS 3 years later. I like a new car and keep it a very long time. Some self-maintenance.

But depreciation hit is something every new lease automatically pays for, so the argument for leasing should include at least getting a car you don't want to pay for up front at a discounted monthly payment.

Last edited by Pierre Louis; 07-28-2020 at 10:21 AM..
Appreciate 0
      07-28-2020, 11:35 AM   #22
OnlyGerman
Major
OnlyGerman's Avatar
271
Rep
1,087
Posts

Drives: F15, F10, E60
Join Date: Jul 2019
Location: Sunshine State

iTrader: (0)

Quote:
Originally Posted by jarsdad1 View Post
Don't feel bad. I looked at a 2017 740 i x-drive, 32k mi CPO for $35,999. Originsl MSRP was $94,800.
The 7 is the best buy depreciation wise
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 03:07 PM.




5post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2022, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST