BMW Performed Shockingly Bad in an Area That People Care About
BMW is one of the most respected luxury automakers on the market. People revere these cars because they deliver solid performance and have a look that’s representative of the company. However, BMW as a company struggles in one important area that matters a great deal to buyers—resale value.
Unfortunately, BMW vehicles depreciate much faster than many of its biggest rivals. Of course, this is also in comparison to many non-luxury brands. Here’s a look into BMW and why its cars may not be the best investment.
BMW has a few cars with horrible depreciation
Most BMW cars get a ton of respect from luxury car buyers for various reasons. However, the automaker also happens to have quite a few models on the iSeeCars top 25 list of models with high depreciation rates over five years. In fact, it has six cars that made the list, with one coming in at number two. This is more than any other automaker that made the unfortunate list.
According to the list, the BMW 7 Series is the worst for its depreciation rate. It will lose 64.5% of its value over five years.
The second worst BMW in this area is the Hybrid BMW 5 Series, which goes down 58.8% in the same timeframe. Not much better is the X5, as it depreciates 58.2%. These models are all within the top 10 of the worst depreciation rates list. The BMW 5 Series, X5, and the X5 M also make the list.
Why is this surprising for BMW?
Most people will probably be surprised that BMW has so many models that have high depreciation rates. However, this becomes much less puzzling when you consider that, as a whole, luxury cars go down in value faster than other mass-produced vehicles.
According to Investopedia, this is because many of the features luxury cars have don’t have significant value to the average buyer. Additionally, people often lease these vehicles, which increases their supply once the lease is over. A higher supply means the vehicle’s overall value goes down.
However, it should be noted that competitors such as Porsche don’t have this problem. While none of its cars are on the list of the quickest to depreciate, it has multiple on the list of the lowest depreciation rates.
In fact, the 911 and the 718 Cayman occupy the top two spots on the list. This means that while luxury vehicles are more likely to lose value at a quicker rate, it’s not always the case.
Does this mean you shouldn’t buy a BMW?
The fact that some BMW models depreciate at a higher rate compared to other vehicles may be alarming to some. However, if resale value isn’t important to you as a buyer, it should not deter you from buying a BMW.
This only matters for people who plan to sell or trade in their vehicle in the near future. However, if, like many owners, you plan to keep it for several years, almost any BMW should suit your needs.
BMW makes great vehicles, many of which have been on the road for several years. However, every automaker struggles in one area or another. For BMW, its issue is that some of its vehicles don’t hold their value. Still, this isn’t a problem for everyone.
