E60 Depreciation
02-22-2006, 07:10 AM
#21
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Taz, i found out that also for me the 5er is a too big, but i just got it.Not to mention it's a lease and i'm stuck for 3 years. I was looking (drooling) at the 997 carrera S. That's a car for me. Although it's a bit pricey for what you get i made a calculation and its like this: 108k leasing price and 140k money down. It's a bit spiced up because i added some stuff like: ceramic brakes 
, power kit (15000euros 
, aero kit cup III....
. So it seems it remains just a dream but hey hey hey the next m3 is just around the corner and just when my lease will be over that will be the perfect time to make the step since by then it will have sorted out all the normal 1st year problems.
, power kit (15000euros , aero kit cup III..... So it seems it remains just a dream but hey hey hey the next m3 is just around the corner and just when my lease will be over that will be the perfect time to make the step since by then it will have sorted out all the normal 1st year problems.
02-22-2006, 07:50 AM
#22
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My Ride: Black 520i, Black leather interior, Active Steering, DSC, PDC, Ornamental grille, Audio Aux Input
Originally Posted by Taz' post='243685' date='Feb 21 2006, 10:46 AM
I bought my E60 from my local BMW dealer in late 2004. He reassured me that these cars are great value and as it was a 6-month old demonstrator, it had already lost around ?6K of its value so wouldn't lose money at the same rate as these cars don't depreciate too much. A couple of weeks ago I asked for a buy-back price just out of interest and he gave me a price that amounted to almost ?1000 per month depreciation over two years!
The car is two years old and is worth less than 50% of its cost price (according to the same dealer that I purchased it from). The depreciation on these cars is horrendous. Obviously selling privately I can get far more for it.
The car is two years old and is worth less than 50% of its cost price (according to the same dealer that I purchased it from). The depreciation on these cars is horrendous. Obviously selling privately I can get far more for it.
02-23-2006, 01:57 AM
#23
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My Ride: I have a 2004 E60. It was registered in January 2004. It's a Black Sapphire 530i SE with a few options:
- Auto-dim interior + folding exterior mirrors
- Automatic gearbox
- Bi-Xenon headlights
- Bluetooth
- Leather interior (Black-Dakota)
- Navigation system - business
- Service inclusive
- Sport steering wheel
- Star spoke 124 8Jx18"/9Jx18" + run flats
- Top tint windscreen
- BMW 6-CD autochanger
- Supagard paint treatment
- BMW carpet mats
You guys are right. I think the important thing to realise is that a new car is going to be a massive financial loss unless you keep it for more than 5 years. Also, the depreciation figures you get from your BMW dealer, various motoring publications and various auto valuation sites (eg. Parkers or Glass's in the UK) are just plain wrong. You need to knock off another 25% to 50% off those valuations to see how much you are really going to get when you trade it in!
As I mentioned before, the thing that annoyed me a bit was a Porsche dealer valuing my E60 higher than the BMW dealer I bought the car off!
As I mentioned before, the thing that annoyed me a bit was a Porsche dealer valuing my E60 higher than the BMW dealer I bought the car off!
02-23-2006, 02:12 AM
#24
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Originally Posted by Taz' post='244651' date='Feb 23 2006, 10:57 AM
As I mentioned before, the thing that annoyed me a bit was a Porsche dealer valuing my E60 higher than the BMW dealer I bought the car off!
As your planning to buy a Porsche then that dealer can 'cut' the deal differently and perhaps offer you more for your trade in (instead of a bigger discount on your new car).
Your BMW man was just offering to buy the car for re-sale - so he has less options.
However, IMO because almost all used e60's are still in the hands of BMW main dealers at the moment (since the car is max 3 years old) I think they are making hay.
They are certainly advertising cars for way more than they should be an (I expect) they are also happily screwing customers on trade in values.
In economic terms they are increasing their margins by controlling supply.
02-23-2006, 02:46 AM
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My Ride: 2006 520d M-Sport / Silver Grey / Maple Wood / Black Dakota Leather / Heated Comfort Seats / Media Pack With Extended Voice Control / Space Saver Spare Wheel / Sun Protection Glass
I've just orded an E60. 5 week lead time and 10% discount on list price at my local dealer. This is not a recipe for good residuals.
My last car had a lead time of 7 months and no dealer discounts, result 54% residual value after 66 months!
Oh well, I'd better start saving for the depreciation!
My last car had a lead time of 7 months and no dealer discounts, result 54% residual value after 66 months!
Oh well, I'd better start saving for the depreciation!
02-23-2006, 03:44 AM
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Originally Posted by TexaZ3' post='243936' date='Feb 21 2006, 07:53 PM
I bought my 04 530i used (details below, w/ only 10K on it) in December 05 and pain $40K - original invoice price was $57K. So there - $17K depreciation over 20 month period - nearly $900 per month! Hope it will depreciate slower no that I own it (I wish!) :-)
02-23-2006, 05:36 AM
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My Ride: '05 530i, Premium, Steptronic, Logic7, Silver grey-black leather. Build date 12/7/04.
L-E-A-S-E and all of these issues become non-issues.
02-23-2006, 06:05 AM
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Originally Posted by tcoz' post='244673' date='Feb 23 2006, 08:44 AM
This is one reason why I lease. BMW props up residuals to make leases attractive and I don't have to worry about depreciation.
02-23-2006, 06:09 AM
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Originally Posted by Nevermind' post='244657' date='Feb 23 2006, 11:46 AM
I've just orded an E60. 5 week lead time and 10% discount on list price at my local dealer. This is not a recipe for good residuals.
My last car had a lead time of 7 months and no dealer discounts, result 54% residual value after 66 months!
Oh well, I'd better start saving for the depreciation!
My last car had a lead time of 7 months and no dealer discounts, result 54% residual value after 66 months!
Oh well, I'd better start saving for the depreciation!
02-23-2006, 10:14 AM
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Originally Posted by TexaZ3' post='244717' date='Feb 23 2006, 09:05 AM
But you own nothing at the end of your lease - to me, leasing is throwing money out! I guess its good if you drive less than 12-15K a year and usually change your car every 2-3 years. I tend to keep my cars 4-5 years, so buying is better for me. Look at it this way, you are paying $500-600 for a lease (maybe even more), I'm paying $700 a month to buy. At the end of your lease you are out $12-15K (2 years) or $18-22K (3 years) and you have nothing to show for it. After 4 years I have spent $33K, but I have a car that I can sell or trade for $20-25. I can drive this car for another year and not make a single payment, saving $8-9K that I can put as a downpayment on a new car. Together with $20-25K trade-in it makes my next car almost free.
Also, I'm not sure that a payment of $700 for 4 years without anything down will get you a car that you can sell for $20-25 after those 4 years. If you put a downpayment then you have to add that to the $33k that you spent.
Actually, I bought my 325i three years ago because the BMWFS terms on a purchase were much better, but the last two times leasing has been better because of the very favorable MF's and/or residuals. My payment on the xiT for 60 months would've been over $1k/month and that was with $2500 down. My lease payment is just over $600 (36mo/15k mi). It was all about cash flow. I also don't want to be bothered with trying to sell a car. Easier to turn it in and jump in a new one.