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Why does 06 525 have lower depreciation than 06 530?

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Old 12-24-2005, 10:31 AM
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Originally Posted by norham' post='215270
That is the opposite of here in the US - I could not believe your numbers so I did some research at kelly blue book and found that

05 525 - 15,000 miles, auto trans:
trade in = 34,150
private party = 39,395
retail = 44,940

BTW - new is 43,270 (I guess there is an assumption that no one gets one without options)

05 530 - 15,000 miles, auto trans:
trade in = 37,125
private party = 42,470
retail = 48,115

BTW - new = 47,370 - same assumption

so IMHO the 530 holds it value the same as a 525
Are your figures ?'s or $'s (Plus the poster is American)
[/quote]
With those figures I hope it's $'s!!!!! (Plus the poster is American)
Old 12-24-2005, 10:47 AM
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It is US $ - sorry - another bad American assumption. I got the values straight from KBB.

I do have trouble believing their figures becasue that means since I got a stripped down 06 - meaing few options, then the car has lost only a few percent since I bought it.
Old 12-24-2005, 11:01 AM
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Kelley Blue Book, 2005 525i, Automatic, 12,000 miles, LA zip code
Equipment
Premium Pkg
Sport Pkg
Air Conditioning
Power Steering
Power Windows
Power Door Locks
Telescoping Wheel
Cruise Control
AM/FM Stereo
Single Compact Disc
Dual Front Air Bags
Front Side Air Bags
ABS (4-Wheel)
Traction Control
Leather
Dual Power Seats
Moon Roof
Alloy Wheels

Trade-In Value $36,725

2005 530
Engine: 6-Cyl. 3.0 Liter
Trans: Automatic
Drive: RWD
Mileage: 12,000, LA zip code

Equipment
Premium Pkg
Sport Pkg
Air Conditioning
Power Steering
Power Windows
Power Door Locks
Telescoping Wheel
Cruise Control
AM/FM Stereo
Single Compact Disc
Dual Front Air Bags
Front Side Air Bags
ABS (4-Wheel)
Traction Control
Leather
Dual Power Seats
Moon Roof
Alloy Wheels


Consumer Rated Condition: Excellent
"Excellent" condition means that the vehicle looks new, is in excellent mechanical condition and needs no reconditioning. This vehicle has never had any paint or body work and is free of rust. The vehicle has a clean title history and will pass a smog and safety inspection. The engine compartment is clean, with no fluid leaks and is free of any wear or visible defects. The vehicle also has complete and verifiable service records. Less than 5% of all used vehicles fall into this category.

Trade-In Value $39,750

So, according to http:/www.kbb.com the depreciate equally. I wonder if BMW Financial added the 2% because of the 06 525i's new engine power. It is interesting.
Old 12-24-2005, 11:54 AM
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Originally Posted by Ricracing' post='215176
How come the 525i has a lower depreciation rate than the 06 530? Even BMW Financial has the 06 525 2 percent better than the 530. It is not a whole lot, but I thought it would have been reversed. Does anyone know why the 525i holds value better?
The 525i is such a great car
[/quote]

Not trying to know your ride, but I drove both and the 525i was just underpowered IMHO. Had to the extra (albeit modest) HPs! Merry Christmas!!
Old 12-25-2005, 07:50 PM
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This is certainly true if you live in Hong Kong where the size of your engine determines the price you pay for renewal of your license's fee. Case in point, my previous E39 523i is basically $1000 USD less than a same year 540i which is a real bargin if you don't mind paying more each year for license and gas.

But in the states, I don't think it matter that much as size of the engine only determines your fuel consumption and well maybe the price of oil change at BMW (6 cyl. vs 8 cyl.)
Old 12-25-2005, 08:49 PM
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Originally Posted by Red' post='215321' date='Dec 24 2005, 12:54 PM
Not trying to know your ride, but I drove both and the 525i was just underpowered IMHO. Had to the extra (albeit modest) HPs! Merry Christmas!!
This year 525i is almost as powerful as last year 530i. If you say its underpowered, that means all 6-cylinder 5 series in the past were underpowered.
Old 12-25-2005, 10:51 PM
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It might be that BMW wants to move more 525i's for a variety of reasons, including CAFE. Generally speaking, cars with bigger engines tend to depreciate faster anyway. The resale on V8s is notoriously weaker than smaller, more fuel efficient I6s.

Originally Posted by BMWDoug' post='215124' date='Dec 23 2005, 11:50 PM
How come the 525i has a lower depreciation rate than the 06 530? Even BMW Financial has the 06 525 2 percent better than the 530. It is not a whole lot, but I thought it would have been reversed. Does anyone know why the 525i holds value better?
Old 01-21-2006, 11:51 PM
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i wonder why anyone in LA needs a car that goes over 50 mph, last time i drove there (nov ) that was the fastest i could ever go, with all the traffic, maybe if they learned how to drive on the freeways and used the lanes correctly this would help
Old 01-22-2006, 02:16 AM
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Originally Posted by norham' post='215155
Originally Posted by BMWDoug' post='215124' date='Dec 24 2005, 07:50 AM
How come the 525i has a lower depreciation rate than the 06 530? Even BMW Financial has the 06 525 2 percent better than the 530. It is not a whole lot, but I thought it would have been reversed. Does anyone know why the 525i holds value better?
I think the secret is in the initial purchase price
A bit of research here in the UK Both of these are 05 models
Basic 525se ?29357 new
to sell now privately ?25460 10k miles
Part exchange ?24005

basic 530ise ?31957
to sell privately ?24515 10k miles
Part exchange ?23115

All this for 43bhp more at ?2600 works out at ?60 per 1bhp and a lower resale value, higher ins poorer mpg
conclusion 530i is an orphan or soon will be IMO of course
[/quote]

Not sure where you got those prices from. I was a bit perplexed with them. Whilst I can understand a higher percentage loss with the 530i, what I couldnt figure out was how a used 530i could be cheaper in ? terms than an equivalent 525i. Its just not logical. If I was presented with the scenario above and knowing that the 525i is not significantly more economical than the 530i, I would pick the used 530i, save some money and get more power.

To check it out for myself, I went to Parkers -

525i Sport Auto 2004/54 plate
Cost New ('04) ? 32457
Franchised Dealer ? 27485
Independent Dealer ? 26050
Private Good ? 25095
Private Poor ? 22705
Part Exchange ? 23660


530i Sport Auto 2004/54 plate
Cost New ('04) ? 36007
Franchised Dealer ? 28920
Independent Dealer ? 27415
Private Good ? 26405
Private Poor ? 23890
Part Exchange ? 24900

The SE models produce similar differences with the 530i always worth more. Glasses guide also delivers similar results. Seems more logical.

Also for new E60 buyers in the UK, don't forget that the 530i includes metallic paint as standard whilst on the 525i it costs extra. Slightly reduces the price difference. Not sure if there are any other equipment differences.
Old 01-22-2006, 02:24 AM
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Originally Posted by SKK' post='227740
Originally Posted by norham' post='215151' date='Dec 24 2005, 12:20 PM
[quote name='BMWDoug' post='215124' date='Dec 24 2005, 07:50 AM']
How come the 525i has a lower depreciation rate than the 06 530? Even BMW Financial has the 06 525 2 percent better than the 530. It is not a whole lot, but I thought it would have been reversed. Does anyone know why the 525i holds value better?
I think the secret is in the initial purchase price
A bit of research here in the UK Both of these are 05 models

All this for 43bhp more at ?2600 works out at ?60 per 1bhp and a lower resale value, higher ins poorer mpg
conclusion 530i is an orphan or soon will be IMO of course
[/quote]
Not sure where you got those prices from. I was a bit perplexed with them. Whilst I can understand a higher percentage loss with the 530i, what I couldnt figure out was how a used 530i could be cheaper in ? terms than an equivalent 525i. Its just not logical. If I was presented with the scenario above and knowing that the 525i is not significantly more economical than the 530i, I would pick the used 530i, save some money and get more power.

The SE models produce similar differences with the 530i always worth more. Glasses guide also delivers similar results. Seems more logical.

Also for new E60 buyers in the UK, don't forget that the 530i includes metallic paint as standard whilst on the 525i it costs extra. Slightly reduces the price difference. Not sure if there are any other equipment differences.
[/quote]
I would agree that the absolute price of an 'equivalent' 525i/530i that the 530i would always cost more. However, the percentage lost on a 530i would be more relative to the initial purchase price.


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