[luckydawg003]

Seems expensive cars depreciate more than cheaper cars for some reason. I had a 02 eclipse gt for 5 years bought used and lost 10k from purchase to trade. Then I had a 10 tc bought new and traded in 6 months and lost 8k. Got my 07 328i used for 18k with 54k miles. So buying used usually works out way better in the long run.

[Wires]

It's not that expensive cars depreciate faster, it's just that they tend to come with high margin, overpriced options.

The depreciation is the difference between what the car is worth and what you paid for it. Like paying for a $3000 leather seat upgrade, whereas it only cost the factory $50 over the seats that were already in there. Same deal with all of the over-priced upgrades. (Like rear seat entertainment. They want close to $4k for a 7" screen with DVD. You can buy a blue ray player, and a 80" TV for that price....)

Prime example is the Cadillac SUV's. They are nothing more than a regular Chevrolet, with VERY expensive upgrades. In a couple of years, the Caddy has depreciated to a point where it's marginally more expensive than the equilavent Chevy, but the depreciation is substancially more.

[EricEst1978]

I think the figure I read somewhere is 40% depreciation after the first three years.

[nagraw4]

Originally Posted by rusn007

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.

If you stick with the car for another year you still might get ~25k

[Philz BMW]

Originally Posted by Envuks

New cars have silly depreciation. That's why personally I'll never buy one

But if you are interested in keeping up with the Jones' you MUST buy a new car. After all, people who believe that everyone buys the most expensive car they can afford, usually buy the most expensive car they can afford.

Bring on the cheerios and ramen noodles, because I've gotta make that M6 payment!

[Hops128i]

I used to think the used is always a better value, but when I bought my 128i in 2010, a new car was $31K and the used ones 2 years old, (similarly optioned) were $26-27k. Since I was planning on keeping this car for around 8 years and 100k miles, I reasonsed the $4-5k I was saving at the beginning would be at the expense of owning a 2-3years older car past 100k miles, it just didn't seem worth it.

[ddeliber]

Originally Posted by overheadvalve

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.

I personally believe that 2-3 yr old car is the way to go as well as others have stated. I just picked up a 2011 335d and I am loving every second I am in the car.

Just out of curiosity "overheadvalve" would you be willing pull and share some details on a recent Manheim list for 2011 335d's? I just want to compare what I paid to what they are getting wholesale.

Thanks

[Taaaaaam]

Assuming you never get rid of your car, depreciation (or true up to market values) means nothing unless you cut a balance sheet on your assets. My point: just drive your car.

[Kolyan2k]

Originally Posted by ddeliber

I personally believe that 2-3 yr old car is the way to go as well as others have stated. I just picked up a 2011 335d and I am loving every second I am in the car.

Just out of curiosity "overheadvalve" would you be willing pull and share some details on a recent Manheim list for 2011 335d's? I just want to compare what I paid to what they are getting wholesale.

Thanks

'11 36k miles $25.2
'11 15k miles $28k

thats Adesa btw

[overheadvalve]

Originally Posted by ddeliber

I personally believe that 2-3 yr old car is the way to go as well as others have stated. I just picked up a 2011 335d and I am loving every second I am in the car.

Just out of curiosity "overheadvalve" would you be willing pull and share some details on a recent Manheim list for 2011 335d's? I just want to compare what I paid to what they are getting wholesale.

Thanks

7 sold from 2-1-13 to 2-19-13 at seven different locations from Cali to Penn.

Price Miles
1.$30000.00 28363
2.$29600.00 15288
3.$32250.00 17610
4.$25250.00 63049
5.$28500.00 30320
6.$29500.00 32575
7.$34000.00 9801

[bender rodriguez]

Luxury cars are the worse because most people buying them only want lease or new. Honestly I don't care because I bought my 2 years old and I am going to keep mine until the wheels fall off.

[ddeliber]

Originally Posted by overheadvalve

7 sold from 2-1-13 to 2-19-13 at seven different locations from Cali to Penn.

Price Miles
1.$30000.00 28363
2.$29600.00 15288
3.$32250.00 17610
4.$25250.00 63049
5.$28500.00 30320
6.$29500.00 32575
7.$34000.00 9801

Thanks. Going rate (list) seems to be around $33k-$36k at around 30k miles, so these wholesale numbers seem inline if not a bit low. How much should a dealer expect to make? I took a look at a couple local auctions before I bought and I couldn't find any D's to speak of but then again, I easily could have missed them.

[Marsden]

Originally Posted by overheadvalve

7 sold from 2-1-13 to 2-19-13 at seven different locations from Cali to Penn.

Price Miles
1.$30000.00 28363
2.$29600.00 15288
3.$32250.00 17610
4.$25250.00 63049
5.$28500.00 30320
6.$29500.00 32575
7.$34000.00 9801

Fascinating data! Low-mileage cars are often better deals than high-mileage.
Just a few thousand more and you can have 15-20K miles instead of 50-60.

[Marsden]

Originally Posted by Hops128i

I used to think the used is always a better value, but when I bought my 128i in 2010, a new car was $31K and the used ones 2 years old, (similarly optioned) were $26-27k. Since I was planning on keeping this car for around 8 years and 100k miles, I reasonsed the $4-5k I was saving at the beginning would be at the expense of owning a 2-3years older car past 100k miles, it just didn't seem worth it.

One of several reasons that used-car prices at new-car dealers are high (particularly for the same brand) is that they cannot have used cars cannibalizing new-car sales.

Originally Posted by Philz BMW

Bring on the cheerios and ramen noodles, because I've gotta make that M6 payment!

Well, people should live within their means. OTOH, some of us will happily eat Cheerios if we have a beautiful car in the garage

[iBoost]

Originally Posted by Marsden

One of several reasons that used-car prices at new-car dealers are high (particularly for the same brand) is that they cannot have used cars cannibalizing new-car sales.



Well, people should live within their means. OTOH, some of us will happily eat Cheerios if we have a beautiful car in the garage

Cheerios do sound delicious now and with all the different flavour ramen noodles I don't think you can go wrong

[rusn007]

Originally Posted by overheadvalve

7 sold from 2-1-13 to 2-19-13 at seven different locations from Cali to Penn.

Price Miles
1.$30000.00 28363
2.$29600.00 15288
3.$32250.00 17610
4.$25250.00 63049
5.$28500.00 30320
6.$29500.00 32575
7.$34000.00 9801

Can you run recent sales data for '11 328 coupe?

thanks

[overheadvalve]

Originally Posted by ddeliber

Thanks. Going rate (list) seems to be around $33k-$36k at around 30k miles, so these wholesale numbers seem inline if not a bit low. How much should a dealer expect to make? I took a look at a couple local auctions before I bought and I couldn't find any D's to speak of but then again, I easily could have missed them.

Manheim auctions are dealer auctions. BMW Financial, Toyota Motor Credit, GMAC, etc. Mostly lease end, repos, or rentals. Competition among dealers is fierce for future CPO cars. Especially at a BMW Financial dealers only sale. So if you look at my auction results figure several thousands of dollars added to sale price for profit AND CPOing the car. There is great incentive provided to dealers to purchase cars at a BMW Financial sale. Free floorplanning, special finance rates to retail buyers, discounts to dealer on the CPO warranty cost. A very profitable side of the business which can at times run up auction prices way beyond any of the "book" values seen at Edmunds, Kellys, etc.

[overheadvalve]

Originally Posted by rusn007

Can you run recent sales data for '11 328 coupe?

thanks

Here ya go. Nine sold from 1/30/13 to 2/26/13 nationally.

Price Miles
$30000.00 7967
$22600.00 49815
$23800.00 21689
$26600.00 13798
$22900.00 22235
$26250.00 12806
$23500.00 47562
$22500.00 29428
$26000.00 14202

[Kolyan2k]

Its also tax season, so prices are at the top now. You can probably save anywhere from $1k to 3k if you purchase in 3 month or so.

[techwhiz]

Demand is driven by how many are on the market. How many lease returns are available, etc.

That being said, OP, I never buy new cars. I wait for someone like you (no offense) panic and sell after they have eaten the big up front depreciation.

All my BMW's have been pre-owned and 3-5 years old.
My current one I got for less than 50% of MSRP after 3 years and one owner.

I love expensive cars on the other guys dime....... 8-)

[jmal82]

Saw a real interesting article in the February Bimmer magazine that talks about how the E90s hold their value over the long haul. You're not going to be able to get the full purchase price back on any car that you buy, but it seems that the E90s are as safe a bet as you can get these days.