strongdeo

Hi - I plan to buy a used 535d ex-deomonstrator 6 months old for about ?35,000 in UK and keep it for two years. ?35k is ?15k less than the list price of ?50k. Do you guys reckon I will get hammered with depreciation. I know BMW diesels have a good reputation for holding their value but is that more for the smaller cars?

All the ex-demonstrators out their have lost ?15k in 6 months, I am thinking that in two years I will have lost loads more value. With a new model slowly bbeing released to the public consciousness the end of the life for the old 5 surely will mean residuals taking a beating?

EBMCS03

If you're that worried about the depreciation I dont think BMW is the right car for you. The first owner (the dealer) already took the largest hit for you.

cleung

this is the reason why I have been buying my bmw's used, the first owner always takes a huge hit. I bought my 2004 e60 this summer and it was only half the price the original owner paid. Like previously said if you are worried about depreciation bmw's are not where you should be looking, or else buy used so someone else takes the brunt of the depreciation.

ressla

+1

expect to lose ?1K a month and you will stay sane. You will probably not be hit that badly but if you,like one of my good friends, expect to keep the car for 2 years and lose only ?10k then you are in for a rude awakening.

IMHO unless you have the worlds worst credit history AND have loads of spare cash lying around AND want to keep the car forever, I would never pay with cash, or even take out a personal loan.

Either contract hire or even better do a PCP. You then dont have the aggro of selling the car at the end of term and can just hand it back.

MacSid

+1 The 5er is definitely not the car to buy if you're worried about depreciation. However, I have discovered through personal experience that you can minimise the hit you take by the timing of when you buy and sell - buy the thing when it is 15-24 months old and part with it when it is between 5.5 and 6 years old. They depreciate like crazy in their first 2 years and again after they are over 5.5 years old.

That apart, I was talking to my dealer on Friday and he's been telling me that they are just not moving 5er's in the current environment, and many of the larger dealer groups in the Netherlands are no sitting on large stocks of brand-new 5er's and are stopping taking older ones in as trade-ins. Values are dropping like a rock in this country at the moment.

dubbers

I'd suggest you could get it a lot cheaper than 35k for a 6 month car. I bought via BMW Friends and Family scheme and got 19% off the list for a brand new factory built car and then looked to trade at 6 months and was offered 33k (about 15k off list)in the pre-credit crunch times (about 12 months ago). Point being, your not getting a bargain or even a decent discount! Times have moved on, car residuals are incredibly poor even on a great car like the 535d. If your a canny buyer you should get it for near ?30k and avoid being shafted well and truly by the dealer.

littlemouse

I think you should look at it as though you are getting a 50k car for 35k thats got less than 10,000 miles on the clock ( barely run in ), and only 6 months old. = good deal

The 535d should hold its value reasonably well, probably getting 45% back after 3 yrs ( start price that is).

If you worry about depreciation too much you will not enjoy the experience of owning what is probably one of the best cars on the market today.

If you feel you are getting a good deal today, then go for it and enjoy.

I had mine Brand new 6 months ago, and new I was going to take a hit, but I had the car built to my exact specifications, and for me I felt at the time that it was worth it.

The 535d is a great car, and am still enjoying driving it, as much as the day I first drove it out of the Dealership.

GB525dTour

Hi

If you look at Whatcar's depreciation index the E60 on for all models, on average, loses 50% of its value in the first year.
This has changed since I bought mine when predicted value after 3 years was 53%.

After that first year (If you take the cars value at 1 year) then it depreciates very well, approx 5-10% of its value per ear - depending on model.

I'll be going for "Appproved Used 1 year old low mileage" for my next one.

PJ

craigm1841

holy crap. they use "reckon" in the UK. i could go on about this all day but i have to ring someone on the tele.

flyingpuck

Lost in all the talk of depreciation, is that this is for a Demo car, and I don't know how you drive a Demo car, but most people abuse them mercilessly! I'd make sure there were NO accidents etc. before you sign on the dotted line! Just my 2 cents, spend them as you see fit!