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      02-25-2013, 12:10 AM   #1
rusn007
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BMW keeping its value?

This is my first BMW, a 2011 328 coupe. I purchased it brand new in October '11 for about $40K (after tax & license, etc...). My current value is $25.5K (based on edmunds tmv). This means I dropped almost $15K in 15 months of ownership. A $1,000 per month depreciation. I currently have 16,000 miles on the car.

I realize that new 4 series are coming out soon, but still, I never thought it would drop that much.

My previous cars have been Nissans and Infinitis. Most of those cars I held for a few years (1-3 years) and I was always able to sell them for a decent amount. My total loss (amount paid less proceeds from the sale) was less than the amount I would have paid if I leased the vehicle.
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      02-25-2013, 12:19 AM   #2
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Car depreciate the most during the first three years coming out of the factory.
Unless you have a classic on your hands it is never an appreciating asset.
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      02-25-2013, 12:32 AM   #3
krhodes1
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Sounds about in the ballpark. Depreciation is heaviest in the first couple years. A new model may cause a small hit. The end of the warranty on these cars is another hit. Then it levels out for a long time, assuming the car is well-maintained. Looking at my own car at Edmunds, I have lost ~$11K since July of '11. You must have more miles on yours, or wagons hold thier value better than coupes. On the other hand, IMHO I have certainly gotten $11K of use and enjoyment out of the car.

That said, while the numbers are bigger (scary big, really), on a percentage basis these cars hold thier value quite well over time. Other expensive cars are often much worse, and more expensive cars are MUCH worse - if you want to have a heart attack, check out the depreciation on a loaded 7-series the first few years. You might as well burn $20 bills while driving.

I plan to keep my '11 wagon so long that the depreciation is but a distant memory.
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      02-25-2013, 08:25 AM   #4
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That's why you buy used. With my past 3 German cars and my current car, I am probably up by 500-1000 bucks..... 0 depreciation in 4 years (will be 5 years in May)

Unfortunately I missed my 5th none-depreciating car last week...was ready to pull the trigger on cheap 08 Cayman S

Last edited by Kolyan2k; 02-25-2013 at 04:41 PM.
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      02-25-2013, 08:58 AM   #5
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Quote:
Originally Posted by Kolyan2k View Post
That's why you buy used. With my past 3 German cars and my current car, I am probably up by 500-1000 bucks..... 0 depreciation in 4 years.....

Unfortunately I missed my 5th none-depreciating car last week...was ready to pull the trigger on cheap 08 Cayman S
This.
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      02-25-2013, 09:07 AM   #6
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Quote:
Originally Posted by Kolyan2k View Post
That's why you buy used. With my past 3 German cars and my current car, I am probably up by 500-1000 bucks..... 0 depreciation in 4 years.....

Unfortunately I missed my 5th none-depreciating car last week...was ready to pull the trigger on cheap 08 Cayman S
How about the repair bill if any?
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      02-25-2013, 11:01 AM   #7
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Quote:
Originally Posted by e90post_user View Post
How about the repair bill if any?
This is a misconception.

And I don't know where you live, but that is not the price for a similar 328 where I live... more around 31 k
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      02-25-2013, 01:06 PM   #8
domyalex
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Also, you lose the taxes you paid, so yeah, the first year is specially bad for depreciation.

+1 for buying used (I personally find the 3 yrs old to be the sweet spot).
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      02-25-2013, 01:44 PM   #9
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ALL cars lose a ton of their new value in the first the first 2-3 years of ownership.

It's not just BMW's, it's all cars. That's how it's always been.
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      02-25-2013, 01:53 PM   #10
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I would agress that the 25.5K seems low. Trade in versus retail value if you sold it outright yourself. BMW's as all cars have the first few year depreciation. Some experts say that if a car is worth 1/2 it's retail value five years out then it's one of the best resale value cars out there. This I have experienced with BMW's both buying and selling. Very few makes are worth 1/2 of retail 5 years out but many BMW's are.
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      02-25-2013, 02:01 PM   #11
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2006 BMW 325i  [0.00]
WEll according to Edmunds TMV my 2006 with 84k miles is only worth $12,200 (in Madison, WI area). I paid about $16k when I bought it. So I am still losing value in a 7 year old car.
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      02-25-2013, 02:36 PM   #12
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I think half the shock we get is values like Edmunds. I have access to Manheims data base of their national network of auctions and keep track of values there. These are true wholesale values. What dealers are willing to pay. For example Edmunds has Snyperx at $12200.00. I just looked up Manheim. 54 2006 325i sold since Feb. 7th nationally. Several at the Manheim in Milwaukee. Average hammer price of above average condition cars in his mileage range were $12800.00 to $13500.00. Remember this is wholesale. These are cars dealers are then asking 15k to 17K for. I wil note several sleds sold for under 10K. It appears condition and mileage still bring above average prices. P.S. Thanks for your service Snyperx.
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      02-25-2013, 02:45 PM   #13
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P.S. Thanks for your service Snyperx.
If you are referring to the "First LT" in my info that is just my designation for the number of posts I have on these boards. Please direct your thanks to all the men and women who serve and have served on these boards
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      02-25-2013, 03:02 PM   #14
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New cars have silly depreciation. That's why personally I'll never buy one
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      02-25-2013, 03:10 PM   #15
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I have bought (new) and sold 4 cars in the last 8 years, so I'm familiar with taxes paid and losing value. I'm just shocked that BMW has lost so much.

I use Edmunds (trade in) as a good gauge to see how much I could realistically sell it as it was pretty close to what I sold my prior cars. Maybe other regions are different, but in S. Cali the market is pretty saturated.

For example, I bought a G35 sedan that I sold after 1 year of ownership. The money that I lost on the sale was under $5K ($3,500 of it was tax). The average monthly lease payment on the G35 sedan at that time was $400 per month. 12 months x $400 = $4,800 (if I was to lease it).

Just didn't expect that I would lose $1K a year in depreciation on my 2011 coupe. I know that if I keep it long enough, 5 years +, the annual depreciation will even out to some degree. I guess it makes more sense to lease BMWs as I saw some ridiculous incentives (i.e. leasing a 2012 coupe for about $300 a month).
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      02-25-2013, 03:20 PM   #16
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I'm same I like to go with 2/3 yr old low mileage cpo car. my current 09 was only driven 5k year so I I had 1yr30k of factory and 2yr50 of cpo which allows me to drive more miles a year and the first guy ate the higher dollars depreciation.

I've also never been fan of buying first or last year of a body style first is problematic and last takes another huge price cut when the new body rolls out
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      02-25-2013, 04:26 PM   #17
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Quote:
Originally Posted by e90post_user View Post
How about the repair bill if any?
None, 2 BMWs were CPO (M3 2-years of warranty, 335 3-years of warranty), 1 Audi was still under factory warranty (2-years), current Honda had 1-year 3rd party warranty that I used once. Havent even paid for tires or brakes on any of my cars yet. 335i and Audi both had free maintenance as well actually I did buy 4 tires for Honda for $200 bucks (like-new Blizzak LM60s)

also have/had winter sets for all 4 cars, 3 sold for small profit, and using 1 now with Honda that i will probably lose few hundred bucks on.

if you count everything though maybe I am not up, but I sure didnt loose any money between those 4 cars and soon 5 years of driving. I dont count my personal maintenance that I do myself mostly and basic mods....just minor stuff, about $400 on 335i, none on M3, $600 on Audi, $150 on Honda

Last edited by Kolyan2k; 02-25-2013 at 04:46 PM.
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      02-25-2013, 04:47 PM   #18
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      02-25-2013, 04:54 PM   #19
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Depreciation is in % of the new car value. A more expensive car loses more value in absolute $$$ than a cheaper econobox, even for similar depreciation curves. Simple maths.
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      02-25-2013, 05:13 PM   #20
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Quote:
Originally Posted by Meeni View Post
Depreciation is in % of the new car value. A more expensive car loses more value in absolute $$$ than a cheaper econobox, even for similar depreciation curves. Simple maths.
what about Lexus vs BMW (or vs MB) ?
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      02-25-2013, 06:34 PM   #21
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enjoy the car don't think it about it too much.. Once you are really to sell it and then look up the value and sell it and don't think about it twice... just my opinion.
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      02-25-2013, 06:36 PM   #22
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Quote:
Originally Posted by Kolyan2k View Post
None, 2 BMWs were CPO (M3 2-years of warranty, 335 3-years of warranty), 1 Audi was still under factory warranty (2-years), current Honda had 1-year 3rd party warranty that I used once. Havent even paid for tires or brakes on any of my cars yet. 335i and Audi both had free maintenance as well actually I did buy 4 tires for Honda for $200 bucks (like-new Blizzak LM60s)

also have/had winter sets for all 4 cars, 3 sold for small profit, and using 1 now with Honda that i will probably lose few hundred bucks on.

if you count everything though maybe I am not up, but I sure didnt loose any money between those 4 cars and soon 5 years of driving. I dont count my personal maintenance that I do myself mostly and basic mods....just minor stuff, about $400 on 335i, none on M3, $600 on Audi, $150 on Honda
Pretty awesome.
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