ebbers

First post so a quick hello to start. Hello!

So, I'm looking at a BMW for my next car purchase. I've been looking at the following models:
2005 535d M Sport (Saloon) with roughly 25, 000 miles on the clock for approx ?31, 000
2006 330d M Sport with roughly 5, 000 miles on the clock for approx ?31, 000
2006 335d M Sport with roughly 1, 000 miles on the clock for approx ?31, 000

Think I've pretty much ruled out the 335d due to it being a coupe and I don't think I can handle another 2 door car again. Especially as it's only a 2+2 as well.

I'm thinking about the 535d and have a couple of questions although I have done a few searches of the forum I possibly want to clarify a couple.

MPG
I do about 50 miles a day, mostly A road stuff so I'm hoping to see figures of about 32mpg. I've seen posts giving upper 20s which is way off the figure quoted by BMW. Is this correct? How can the car be almost 10mpg out in the quoted figure or is this all inner city with lots of stops and starts?

Warranty
I'm hoping to get at least 1 years warranty out of the car before I need to renew. I've seen a few posts about warranties and that they are mostly using 3rd parties like Warranty Direct. Although this is approximately half the price of BMW won't this have an effect on future selling prices?

Depreciation and Residual Values
I've seen the posts about after 5 years the car has lost 63% of it's total value. Although I doubt many people are at that stage yet are we seeing those predicted figures ring true when it comes time to sell? TBH I'm hoping to retain as much value on the car as possible but because the model is not old enough for a comparison I've having problems predicting it's future worth......Ths is probably my biggest deciding factor.

Say the base price for the 535d was ?42, 000
A 2005 model costs approx ?31, 000
So it's lost ?11, 000 in 2 years
After 5 years it would be worth (minus 63%) ?15, 000

Is that correct? Will a 2002 model with 60, 000 miles on it only cost ?15, 000?
I'd hope to only lose say ?10, 000 over 3 years but have a feeling I could be way out with my calculations. I wonder if the new uprated 535d that may be released soon will have an effect on residuals?

Any help or advice on this would be greatly appreciated!!

Regards
Ebbers

diveleader

Ebbers,
Welcome to the forum - there is a mass of info for you here.

Depreciation and Residual Values

The short answer is... it will always be worth less than you think. If residual values are important to you, can you consider a PCP with a g'teed future value or maybe a private lease?

Also, in calculating used purchase values, don't forget that the dealers (if you are buying BMW Approved) will have a fair wedge in the deal.

The short answer is, I reckon a 535 will cost you more than that, unless you plan to keep it longer. If age of your car is a problem, throw a cheap (c?400) private plate on it and get an aftermarket warranty for peace of mind

aybeesea

a) MPG 535d - town 26MPG/run 35MPG (my figures) - remember BMW figures aren't BMW figures, they are GOVERNMENT figures following a theoretical cycle we can't reproduce. Other's may achieve different values according to driving style.


b) Warranty - how can type of warranty YOU buy affect resale value? A buyer cares that he buys a working vehicle - not that a load of warranty work has been carried out on it!

c) The e60 hasn't even been out 5 years yet so no-one KNOWS what its depreciation will be.

ABC

pedrollo

Welcome.

32mpg is about right for that sort of journey I would say.

You will start with the balance of the manufacturers warranty, or minimum 12 months if bought from a dealer. After that it is your judgement, I havn't decided yet.

Last year I got ?15k for my 60k mile e39 tourer on trade in, cheaper model than the 535d and by then obsolete. I doubt the depreciation will be quite as bad as you predict, particularly as the 535 is the aspirational model in the UK. Depreciation is never great on a car of this size though so don't expect miracles.

colejl

True... The LCI won't bash the residuals too much unless people really worry lots about the auto mpg/CO2... (The styling is too similar to worry)

The complete replacement in 2010/11 will have a bigger impact...

aybeesea

?

ABC

sciarrino

You won't by a 535d M Sport if you consider TCO. If you buy it you follow your heart, and nothing more.

If you want low TCO, buy 520d Touring, with as less options as possible.

Buying BMW from the cheapest model to the most expensive you can count on much more than the double. (In Belgium 5 series starts at 35.000 EUR, for my 530xdAT M Sport with all options I paid 75.000 EUR...

So if TCO is important, don't. If you like the car, DO...

aybeesea

In the UK the 535d has been described as having the best (in favour of the seller) 3-year depreciation of any car in the same ("Small Executive") class, retaining 53.8%.

http://forums.e60.net/index.php?s=&sho...st&p=284691

ABC

red-max

I found the What Car depreciation index to be useful and fairly accurate.
http://www.whatcar.com/depreciation-index.aspx

I sold my 2004 E60 530d last November (at 32 months old, 32k miles) for ?20500 - 62% of the original showroom price.

at 0yrs old: 00000 miles March 2004 value ?33165
at 1yrs old: 09000 miles March 2005 value ?27000 (est)
at 2yrs old: 19000 miles March 2006 value ?24000 (est)
at 3yrs old: 35000 miles March 2007 value ?20562 (62% of ?33165)
at 4yrs old: 51000 miles March 2008 value ?17849
at 5yrs old: 66000 miles March 2009 value ??????

Things to watch out for:
a/ The spec of the car is quite important in terms of holding on to good resale value
b/ Every time you trade your car in you lose a fair amount of money (dealer makes money at both ends of the deal)
c/ Keeping the car longer should be better in terms of TCO, but keeping the car too long takes you into extended warranty with potentially higher maintenance costs and reduced reliability

pedrollo

..where great depreciation is not much


I agree that the spec is important, and the timing also plays a part.