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BMW 3-Series (E90 E92) Forum
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Depreciation question.
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08-16-2012, 11:55 PM | #4 |
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Drives: E90 325i Auto~NO~Go
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Already planning an upgrade =)
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08-17-2012, 12:13 AM | #5 |
EL JIMMY NEURON
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A LOT.
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2007 Jet Black E90 328i
Thread: http://www.e90post.com/forums/showthread.php?t=825249 Instagram: manutd_as |
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08-17-2012, 07:09 AM | #8 |
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I have a formula that calculates depreciation...so for your car with your miles...
A grand total of........................... 18,324 duckets Have a great day, Fatty D |
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08-17-2012, 07:54 AM | #9 |
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In general cars depreciate 50% of their value in 40 months. 65% by 60 months. And the depreciation is irregardless of miles and condtion. Obviously it can't be a junk heap but if it is in generally good condtion or better they all value out the same.
I personally think this is great! Example: I just bought a 2006 330xi with all the packages in fantastic condition for $15K. One owner car kept it for 100K miles and then traded it into the same dealer he bought it from and where it was serviced. I got the full service history! Originally that car out the door was about $48K. In its current condition you would think it was new! I find the best deals when cars are 5 - 6 years old and the way they build cars today a 100K miles is nothing. I can pay for some repairs out of warranty to reap the savings over buying new. Just be smart about what you're buying and you'll come out so far ahead when in the used car market! Last edited by jacobsed; 08-17-2012 at 08:07 AM.. |
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08-17-2012, 10:39 AM | #10 |
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Most mass-produced cars like the BMW 3-Series take big depreciation hits at the beginning and the end of their service life. Depreciation during years 3-6 of a car’s service life is relatively stable. Then the values drop off again as reliability begins to decline and maintenance costs begin to rise (this will be especially true of N54-powered vehicles IMO).
My $45k (MSRP) 2007 E90 was only worth about $23k wholesale (trade-in value) after 3 years. That was nearly 50% depreciation over the first 3 years, or about 20% annually. Depreciation in years 4 and 5 have been about 14% annually (the car's wholesale value is currently about $17k). After the CPO warranty expires in year 6, I expect the annual depreciation to be more than 14% again. This is why it makes a lot of financial sense to buy good 2-3 year old used cars and drive them for 3 years before selling them. That way you're letting others take the big depreciation hits at the beginning and the end of the car’s service life. All that being said, who really knows what used BMWs will be worth a few more years into this economic depression?
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08-17-2012, 10:58 AM | #12 |
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I said it before, but I'll say it again. Getting a BMW is not a smart move for personal finances, but it is a terrific move for life enjoyment. OP needs to stop worrying about how much the car will be worth in three years, and make sure to enjoy those three years. That way, the depreciation will just be happiness fee...
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08-17-2012, 11:13 AM | #13 |
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08-17-2012, 11:16 AM | #14 |
Captain
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Drives: 2008 E92 335XI Coupe
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Location: NJ,VA
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2008 E92 335XI, Space Gray on Coral/Fox Red Hybrid M3 seats, Premium, Cold Weather, Comfort Access, iPod.
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