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Here are Reality BMW Depreciation Numbers
I was bored today, so I went online and did a search via cars.com, autotrader.com and ebay.com. I wanted see how BMW's hold their value through the years. I did a search for a 2001 (five year old) 530 with automatic, sport, and premium package and compared it against a 2003 (three year old) 530 with automatic, sport, and premium package. I took a large sample base of the listed prices of cars from Dealers and Private Parties. The Dealers included both BMW Dealers and Non BMW Dealers.(I could break them down into each respective sub group if anyone wants.) Here are the numbers:
Model year 2001 (five years old) 530i Model year 2003 (three years old) 530i
Average asking selling price: $24,081 Average asking selling price: $37,081
Average number of miles: 64,604 Average number of miles: 39504
Expected value 5 year old 530 (39% X miles driven) Expected value of 3 year old 530 (93% x miles driven)
Does anyone know the MSRP of a 2001 530 with Automatic, Sport and Premium Package? And, the MSRP of a 2003 530 with Automatic, Sport, Premium Package? It would be interesting to see the percentage differential from the Original MSRP to the current asking prices for both the 2001 and 2003 530.
What does all this mean? Heck, I don't know. But, it was fun! Well, as I see it, the sweet sport for selling a 530 is at the 3 year mark. And, in terms of buying new or used. If you can come up with the money for a new car. A new 2006 530 will be a better value than a used 04 530. Since at the end of three years, your 2006 will be worth $13,000 more than the used 04, which is about a wash financially speaking. In other words, a used 2004 will be about $13,000 less than a new 2006, but at the end of three years, the 2006 is worth $13,000 more. Buying Used makes perfect sense if you want to save upfront cash or you are not in a position to purchase a car that is $13000 more. Or, if you don't mind a five year old car with a little mileage (nice deal money wise). But, if those three scenarios are not the case, BUY NEW!
In terms of leasing, I am not as versed as others on this Forum. I guess it makes leasing a new car a good deal as well?
| | Reply » Here are Reality BMW Depreciation Numbers |
Quote: Model year 2001 (five years old) 530i Model year 2003 (three years old) 530i
Average asking selling price: $24,081 Average asking selling price: $37,081
Average number of miles: 64,604 Average number of miles: 39504
Expected value 5 year old 530 (39% X miles driven) Expected value of 3 year old 530 (93% x miles driven)
Does anyone know the MSRP of a 2001 530 with Automatic, Sport and Premium Package? And, the MSRP of a 2003 530 with Automatic, Sport, Premium Package? It would be interesting to see the percentage differential from the Original MSRP to the current asking prices for both the 2001 and 2003 530.
As I see it, the sweet sport for selling a 530 is at the 3 year mark. And, in terms of buying new or used. If you can come up with the money for a new car. A new 2006 530 will be a better value than a used 04 530. Since at the end of three years, your 2006 will be worth $13,000 more than the used 04, which is about a wash financially speaking. In other words, a used 2004 will be about $13,000 less than a new 2006, but at the end of three years, the 2006 is worth $13,000 more. Buying Used makes perfect sense if you want to save upfront cash or you are not in a position to purchase a car that is $13000 more. Or, if you don't mind a five year old car with a little mileage (nice deal money wise). But, if those three scenarios are not the case, BUY NEW! ? | I just bought a CPO 2003 530i with AT, Premium Package, Xenons, and Premium Sound with 22,500 miles. The Dealer asking price was $37k. The final selling price was less. I believe the original MSRP was about $48K.
My 530i came with a CPO warranty, so I am covered for 40 months, 77,500 miles, and I saved over $1000 in sales tax from the differnce in price comparing my car to what it would have cost new.
If I can purchase a CPO 2003 for about the same price private sellers are asking for their vehicles, I would rather buy it with the CPO Warranty from a Dealer who has to stand behind the car. People can ask whatever they want for their cars, but what they sell them for is a different thing. From looking at Edmunds, and KBB I think a private seller would be luckey to get $30K for a 2003 530i with close to 40K miles. At auction, 2003 530i go for about $27,000 to $28,000 in very good condition. Picking up a private sale 530i at or below $30,000 (or paying what I did for a CPO with low miles) makes the argument for buying Pre-Owned much stronger.
I think that when it comes time to sell my 530i, it will be down into a price range where it will be easyer to sell to a private individual rather than trade it in and loose $3,000 to $5,000 value. People can come up with $20,000 much easyer than $30,000.
Just my thoughts.
Steve
| | Reply » Here are Reality BMW Depreciation Numbers |
Quote: I just bought a CPO 2003 530i with AT, Premium Package, Xenons, and Premium Sound with 22,500 miles. The Dealer asking price was $37k. The final selling price was less. I believe the original MSRP was about $48K.
My 530i came with a CPO warranty, so I am covered for 40 months, 77,500 miles, and I saved over $1000 in sales tax from the differnce in price comparing my car to what it would have cost new.
If I can purchase a CPO 2003 for about the same price private sellers are asking for their vehicles, I would rather buy it with the CPO Warranty from a Dealer who has to stand behind the car. People can ask whatever they want for their cars, but what they sell them for is a different thing. From looking at Edmunds, and KBB I think a private seller would be luckey to get $30K for a 2003 530i with close to 40K miles. At auction, 2003 530i go for about $27,000 to $28,000 in very good condition. Picking up a private sale 530i at or below $30,000 (or paying what I did for a CPO with low miles) makes the argument for buying Pre-Owned much stronger.
I think that when it comes time to sell my 530i, it will be down into a price range where it will be easyer to sell to a private individual rather than trade it in and loose $3,000 to $5,000 value. People can come up with $20,000 much easyer than $30,000.
Just my thoughts.
Steve | The asking price by the Dealer is right on the money with what I found doing my search. Of course, the asking price is the asking price, and selling price is always different. But, that is true regardless of wether the car is new or used. I also agree your CPO was a smart move. You have the warranty. Nice job!
I would not buy a BMW at an auction, because what you get is what you get, you cannot have them inspected. If I was getting rid of my BMW I would sell to a private party over a trade in. I would just lower the price a bit to make it attractive to a private seller. He/she wins, I win. The resulting sale would still be more than a trade in. Now, if I had a great relationship with my friendly local Dealer, then I might trade in and buy another car from him/her, since I could negotiate a good deal on both ends. 
I think the main point of my post is valid, and that is BMW's hold value very well.
| | Reply » Here are Reality BMW Depreciation Numbers |
Quote: The asking price by the Dealer is right on the money with what I found doing my search. Of course, the asking price is the asking price, and selling price is always different. But, that is true regardless of wether the car is new or used. I also agree your CPO was a smart move. You have the warranty. Nice job!
I would not buy a BMW at an auction, because what you get is what you get, you cannot have them inspected. If I was getting rid of my BMW I would sell to a private party over a trade in. I would just lower the price a bit to make it attractive to a private seller. He/she wins, I win. The resulting sale would still be more than a trade in. Now, if I had a great relationship with my friendly local Dealer, then I might trade in and buy another car from him/her, since I could negotiate a good deal on both ends.
I think the main point of my post is valid, and that is BMW's hold value very well.
| I just recently sold my MB C280. It was in great condion and still had 4 months left on the StarMark warrantly. I used Edmunds as a guide, and ended up after a month selling it below want was listed as "Average" price. My point is that Asking is not Selling price.
I agree with you about buying at Auction. My independant repair shop buys cars at auction, for cutomers, and sells them with a 10% mark up, so I could have got a 2003 530i for about $30-31 k from him. For a litile bit more, I got a CPO that I could see and test drive, and take for a pre-purchase inspection. So I paid a bit more for peace of mind.
My only point is that for me, CPO works over purchasing new. My other point is that if you negotiate with a Dealer, toward the end of the month, CPO is not that much more.
Steve
| | Reply » Here are Reality BMW Depreciation Numbers |
I have a 2001 530i with Sport/Premium, Convenience, Xenon's, PDC, no step, no nav, no CWP. Sticker ws just around $46,800, I believe.
Quote: I was bored today, so I went online and did a search via cars.com, autotrader.com and ebay.com. I wanted see how BMW's hold their value through the years. I did a search for a 2001 (five year old) 530 with automatic, sport, and premium package and compared it against a 2003 (three year old) 530 with automatic, sport, and premium package. I took a large sample base of the listed prices of cars from Dealers and Private Parties. The Dealers included both BMW Dealers and Non BMW Dealers.(I could break them down into each respective sub group if anyone wants.) Here are the numbers:
Model year 2001 (five years old) 530i Model year 2003 (three years old) 530i
Average asking selling price: $24,081 Average asking selling price: $37,081
Average number of miles: 64,604 Average number of miles: 39504
Expected value 5 year old 530 (39% X miles driven) Expected value of 3 year old 530 (93% x miles driven)
Does anyone know the MSRP of a 2001 530 with Automatic, Sport and Premium Package? And, the MSRP of a 2003 530 with Automatic, Sport, Premium Package? It would be interesting to see the percentage differential from the Original MSRP to the current asking prices for both the 2001 and 2003 530.
What does all this mean? Heck, I don't know. But, it was fun! Well, as I see it, the sweet sport for selling a 530 is at the 3 year mark. And, in terms of buying new or used. If you can come up with the money for a new car. A new 2006 530 will be a better value than a used 04 530. Since at the end of three years, your 2006 will be worth $13,000 more than the used 04, which is about a wash financially speaking. In other words, a used 2004 will be about $13,000 less than a new 2006, but at the end of three years, the 2006 is worth $13,000 more. Buying Used makes perfect sense if you want to save upfront cash or you are not in a position to purchase a car that is $13000 more. Or, if you don't mind a five year old car with a little mileage (nice deal money wise). But, if those three scenarios are not the case, BUY NEW!
In terms of leasing, I am not as versed as others on this Forum. I guess it makes leasing a new car a good deal as well? |
| | Reply » Here are Reality BMW Depreciation Numbers |
Quick Reference point.
My E39 525: MSRP was $44,xxx.
Purchase price was $38,xxx (there was an incentive)
OTD $41,xxx
Sold after 28 months, 29K Miles for $29K in less than 24 hours.
The car was clean. There was a minor parking lot ding which I had gotten fixed and revealed to the buyer.
The residual number for the 5 series are quite realistic for 3yrs.
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Here are Reality BMW Depreciation Numbers