Do BMW 5's hold their value?
03-11-2005, 11:09 AM
#11
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Originally Posted by BMWJIMT' date='Mar 11 2005, 12:43 PM
They do seem to depreciate rapidly. I purchased mine from BMW dealer, 7 months old, 400 miles only on the clock, owned by a BMW accountant , at ?10000 off list price for the spec!! Hopefully shouldnt depreciate too quickly now.
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My excuse is that there wasn't any 2nd hand ones around when I purchased plus I wanted to choose my options. Plus I'm insane.
03-11-2005, 12:34 PM
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Your dealer is just over inflating your part ex value on paper to make it seem like a better trade in value. I think your cost to change doesn't seem too bad though. Try going to another dealer and getting a quote for the new car you've ordered without a part exchange. I think you'll be surprised ho much money you will get discounted of the list price.
I have only been offered ?25k for my car which is similar mileage to yours, a month newer and a high spec as well. These cars DO NOT hold their value and it is the sport model that is selling new in the UK, not the SE. All BMW models are suffering heavy depreciation now due to resistance to the new designs and the 2nd hand markets fear of the high electrical gadget content. It's difficult to get a good part exchange price on a used car when it is so easy to get 8% or higher off a brand new one.
As a little bit of side news I found out today that a dealer near to my home was the 3rd largest volume seller of 7 series in the UK last year. They sold 24... yes 24 cars. Hardly what you would call a strong performance so goodness only knows how few 7 series are sold new in the UK market. No wonder BMW wouldn't re-engineer the 740d for the UK market.
I have only been offered ?25k for my car which is similar mileage to yours, a month newer and a high spec as well. These cars DO NOT hold their value and it is the sport model that is selling new in the UK, not the SE. All BMW models are suffering heavy depreciation now due to resistance to the new designs and the 2nd hand markets fear of the high electrical gadget content. It's difficult to get a good part exchange price on a used car when it is so easy to get 8% or higher off a brand new one.
As a little bit of side news I found out today that a dealer near to my home was the 3rd largest volume seller of 7 series in the UK last year. They sold 24... yes 24 cars. Hardly what you would call a strong performance so goodness only knows how few 7 series are sold new in the UK market. No wonder BMW wouldn't re-engineer the 740d for the UK market.
03-11-2005, 04:14 PM
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Originally Posted by colejl' date='Mar 11 2005, 03:09 PM
[quote name='BMWJIMT' date='Mar 11 2005, 12:43 PM']They do seem to depreciate rapidly. I purchased mine from BMW dealer, 7 months old, 400 miles only on the clock, owned by a BMW accountant , at ?10000 off list price for the spec!! Hopefully shouldnt depreciate too quickly now.
[snapback]99983[/snapback]
My excuse is that there wasn't any 2nd hand ones around when I purchased plus I wanted to choose my options. Plus I'm insane.
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[/quote]Not at all Colejl! When buying a new beemer there's nothing like being able to choose the colour and options etc. I know you can save money on buying out of the showroom (Like I did first time round) or nearly new but you always know its not going to be the best investment. But if you work hard then you should play hard - enough said!
03-11-2005, 05:08 PM
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Just remember.... if you live anywhere but the USA, you get your ass handed to you.
I couldn't believe how expensive some of the cars are in European countries. Way to go, Socialism....
Here in the USA, everyone has a BMW. In a lot of European countries, you got to be able to afford the equivalent of a Ferrari in the USA.
I couldn't believe how expensive some of the cars are in European countries. Way to go, Socialism....
Here in the USA, everyone has a BMW. In a lot of European countries, you got to be able to afford the equivalent of a Ferrari in the USA.
03-11-2005, 05:23 PM
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You can have them.
I'd rather be driving my 545 SMG with Sport Package, M-sport aero, Comfort Seats, Navigation, Logic 7, Active Cruise, folding seats, etc.... than a 525, or some diesel. Or worse yet... a 325.
I had to drive a 325 loaner car while my M-kit was getting installed. What a piece of crap by comparison. I couldn't even believe it was a BMW.
I'd rather be driving my 545 SMG with Sport Package, M-sport aero, Comfort Seats, Navigation, Logic 7, Active Cruise, folding seats, etc.... than a 525, or some diesel. Or worse yet... a 325.
I had to drive a 325 loaner car while my M-kit was getting installed. What a piece of crap by comparison. I couldn't even believe it was a BMW.
03-11-2005, 09:59 PM
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I'm sure you would.
I don't think many people who could afford the 545 would buy a 525 instead.
However, I can not see that you would say a 325 is crap. Sure, it hasn't been updated yet to the same style and gadgetry of the E60, but I would have taken a E46 3 series over an E39 5 series anyday.
With the exception of the M5 that is
I don't think many people who could afford the 545 would buy a 525 instead.
However, I can not see that you would say a 325 is crap. Sure, it hasn't been updated yet to the same style and gadgetry of the E60, but I would have taken a E46 3 series over an E39 5 series anyday.
With the exception of the M5 that is
03-11-2005, 10:59 PM
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Originally Posted by Merv the Derv' date='Mar 12 2005, 01:14 AM
Not at all Colejl! When buying a new beemer there's nothing like being able to choose the colour and options etc. I know you can save money on buying out of the showroom (Like I did first time round) or nearly new but you always know its not going to be the best investment. But if you work hard then you should play hard - enough said!
03-12-2005, 01:09 AM
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Hi, this is interesting.
I did a few numbers as I was interested. If you look at trade press the car is worth 59% after 3 years, and of the 41% loss I'd estimate it is yr 1 = 20%, yr 2 = 11% and yr 3 = 10%.
On that basis, the car is worth
new 39,000
6 mo 34,320
1 yr 31,200
18 mo 29055
2 yr 26,910
2.5 yr 24960
3 yr 23,010
This assumes the options and car depreciate at the same rate.
In your description if the dealer is giving you ?29k, and a discount of ?2.5 then you are actually getting ?31.5 and paying list for the new one. I would have thought a decent deal would be (a) use the chart above, ie ?29k for yours, and (b) standard discount on a new one ie 6% off again.
I did a few numbers as I was interested. If you look at trade press the car is worth 59% after 3 years, and of the 41% loss I'd estimate it is yr 1 = 20%, yr 2 = 11% and yr 3 = 10%.
On that basis, the car is worth
new 39,000
6 mo 34,320
1 yr 31,200
18 mo 29055
2 yr 26,910
2.5 yr 24960
3 yr 23,010
This assumes the options and car depreciate at the same rate.
In your description if the dealer is giving you ?29k, and a discount of ?2.5 then you are actually getting ?31.5 and paying list for the new one. I would have thought a decent deal would be (a) use the chart above, ie ?29k for yours, and (b) standard discount on a new one ie 6% off again.
03-12-2005, 04:31 AM
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Black Interior, Anthracite Trim
M-tech kit
Sport Package
Premium Sound
Satellite Radio
Active Cruise
Comfort Seats
Navigation
Folding rear seats
However, I can not see that you would say a 325 is crap.
Well..... my viewpoint is a bit skewed.
My brother had a 1999 M3. That was the first BMW I ever drove, and I loved it.
Then I got my 2005 545 SMG. I love it even more.
I drove that newer 325i, with Steptronic as a loaner from the dealership. Holy crap, what a difference. It just did not feel the same. No power, steering felt terrible, and the quality of the interior just felt cheap. I could not believe this was made by the same people that did my E60, or my brother's old M3.