Many car enthusiasts and experts have voiced their opinions on BMW’s resale value, making it a topic that sparks much debate in the automotive world.
The question is: does BMW hold its value as well as other luxury cars? This may be of concern to BMW buyers who want assurance that their investment will not depreciate too quickly over time.
“My dad always told me – if you treat something right then it will last longer than expected. With a bit of due diligence, some savvy budgeting, and regular maintenance, then yes, a BMW can retain or increase in value,” writes one BMW owner.
With every brand come different models and manufacturing years which contribute significantly to their reselling price. That conundrum got us thinking – do all BMWs maintain their worth?
In this article, we’ll explore whether or not BMW holds their value by looking at various factors such as consumer feedback, industry ratings, depreciation rate among its competitors, and more.
We hope to help BMW lovers make an informed decision when purchasing their dream car and give them insights into managing their finances. Let’s begin!
What Determines a Car’s Resale Value?
Age and Mileage
The age and mileage of a car are two key factors that determine its resale value. The older the car is, the lower its value will be, as it is assumed to have more wear and tear. Similarly, the higher the mileage on a car, the less valuable it is considered because it has been driven more.
When it comes to BMWs, they tend to hold their value quite well due to their reputation for being reliable and durable vehicles. A report by iSeeCars.com placed several BMW models, including the 3-Series, 5-Series, and X1, in the top ten best used cars to buy in terms of depreciation after three years of ownership.
Condition and Appearance
The condition and appearance of a car play a crucial role in determining its resale value. A car that has been well-maintained and looks clean and new will fetch a higher price than one that shows signs of neglect or damage.
BMW owners generally take great pride in maintaining their vehicles, which helps preserve their value over time. According to AutoTrader, the quality and durability of BMW interiors also contribute to their strong resale value.
“The materials used are high-quality, and everything feels solidly built – those qualities help keep prices buoyant.” -AutoTrader
In addition to maintenance, installing aftermarket upgrades can also improve a car’s resale value. However, it’s essential to choose modifications carefully as some may not appeal to potential buyers or could even decrease the value of the vehicle.
A study by Edmunds.com found that various BMW performance parts such as exhausts and wheels improved the resale value of a vehicle by up to $1,000 when installed professionally and accompanied by appropriate documentation. On the other hand, some modifications like neon lights or chrome trim can negatively impact a car’s resale value.
When considering purchasing a BMW for its strong resale value, it’s essential to keep in mind that several factors determine a car’s value. While BMWs are generally known to hold their value well, specific models or individual circumstances may cause them to depreciate more quickly.
“The brand you choose is important when trying to maintain your trade-in value, but certain cars within that brand are also critical.” -Edmunds.com
The age, mileage, condition, appearance, and even aftermarket upgrades all contribute to a car’s resale value, including BMWs. By paying attention to these factors, owners can help preserve the value of their vehicle over time.
BMW’s History of Holding Their Value
If you’re someone who plans on buying a car, one question that comes to mind is if it holds its value. While most cars depreciate over time, BMW vehicles tend to hold their value more than others. There are several factors as to why this happens.
BMW’s Reputation for Quality
One major reason BMWs maintain their value so well is that they have a reputation for quality. They are constructed with high-quality materials and undergo rigorous testing before being released onto the market. The way these vehicles perform and handle means that people looking for a reliable vehicle will consider purchasing a BMW.
“The purchase price of a new luxury automobile represents only about half (or less) of the total cost-of-ownership over five years.” – JD Power
This statement shows how much maintaining a good reputation can affect the value of a car, particularly in the luxury category. People are willing to pay extra money to get a vehicle that will last long-term, which ultimately helps retain its value.
Limited Production and High Demand
Another reason for BMW’s high resale value is that they limit production, making them exclusive and desirable. This limited availability makes demand higher, which drives up prices. When units are highly sought after, the manufacturer’s suggested retail prices usually increase as well.
In 2019, less than 4000 BMW i8’s were produced globally, creating exclusivity for those lucky enough to own one. Having such an elite driving experience like driving a BMW i8, having access to sophisticated technology, and other fantastic features encourage owners to enjoy or resell at premium costs.
Consistent Updates and Improvements
BMW consistently updates and improves its models, not only to stay relevant but also to keep their resale value high. When BMW releases its models with modern technology and design updates, it makes previous models appear outdated in comparison thus driving up demand for newer models. Highly desirable features like night vision with a thermal camera often debut on pricier cars of the particular company.
The 2020 BMW X7 SUV is equipped with an array of technological advancements from gesture control to infotainment that even assists drivers when they’re away from the car Such features tend to help retain or increase the vehicle’s resale value since individuals looking for use vehicles would appreciate luxury amenities like these ones.
Exclusive Features and Luxury Amenities
Beyond updated standard features, BMWs come stocked with exclusive options and luxury amenities that aren’t included with most other brands.
“The BMW brand has always stood out as premium because of its reputation for quality.” -Edmunds
BMW owners can enjoy heated leather seats, built-in GPS, surround sound systems, advanced safety technologies such as collision avoidance, all-wheel drive capabilities, and much more. These features are what sets BMW apart from most other brands making them unique and highly coveted.
Finally, it is worth mentioning; The lengthiness of warranties signified by the Countryman’s four years, bumper-to-bumper warranty and additional year of powertrain coverage play a significant role in enhancing used vehicles’ overall value. Alongside manufacturer support and dependability further boosts the consumers trust hence willingness towards a choice that appears safer from both financial and reliability perspectives.
Factors Affecting BMW’s Resale Value
Maintenance and Repairs
A well-maintained vehicle is more likely to maintain its resale value. This holds true for a BMW as much as any other car on the market. Regular oil changes, brake servicing, tire rotations, and other maintenance tasks not only keep the car running smoothly but also helps prevent larger problems from developing later on.
It’s also important to get repairs done promptly, whether it’s a small cosmetic issue or something major like engine troubles. A potential buyer will be wary of purchasing a car that has obvious signs of neglect, and they may only offer you a lower price than what you anticipated. Staying on top of your vehicle’s maintenance schedule can help save you money in the long run by preserving the car’s resale value.
“A ‘clean’ vehicle history report certainly adds value to your vehicle at trade-in time.” -Edmunds
Vehicle History and Accidents
The condition of a car plays a huge part in determining its resale value. In addition to regular maintenance, a clean title history without accidents or damage reports is highly desirable to buyers. Even if an accident was minor and repaired properly, simply having it on the car’s history report can negatively impact its resale value.
Another factor to consider is the number of previous owners a vehicle had. More owners typically equate to a slightly lower resale value since buyers prefer cars with fewer hands behind the wheel. However, this isn’t always the case, and a one-owner car doesn’t guarantee a higher resale value if the condition isn’t up to par.
“The first owner takes the biggest hit in depreciation costs, meaning the cost of a used BMW drops considerably right around six years old. If you are lucky enough to find a high-spec car in great condition with fewer than 100,000 miles after six years, you may have yourself a bargain.” -J.D. Power
Market Trends and Competition
All other factors aside, the demand for BMW’s on the used market plays a crucial role in determining its resale value. If there is strong consumer confidence in the brand or a particular model, that can drive up prices even if individual cars aren’t in the best condition.
Competition from other luxury brands can also affect used car prices across the board. If buyers have several similar options within their budget, they’re more likely to go with whichever option offers them the most for their money.
“The BMW X3 retains about 48% of its value over five years, with sales averaging between $26-27k in year one and $12-$13k by year five. While this represents excellent retention rates compared to some competitors, it would unfortunately make for a very expensive trade-in at your BMW dealer as residual values (and thus lease payments) will be based on auction data.” -CarEdge.com
How Does BMW Compare to Other Luxury Car Brands?
BMW’s Resale Value Compared to Audi and Mercedes-Benz
When it comes to luxury car brands, one of the most important factors to consider is resale value. According to Kelley Blue Book, BMW ranks higher than both Audi and Mercedes-Benz in terms of overall resale value.
This means that if you were to purchase a new BMW and decide to sell it a few years down the line, you can expect to get more money back compared to an Audi or Mercedes-Benz in similar condition and mileage. This is due in part to BMW’s reputation for quality engineering and reliable performance, which translates into better long-term value for owners.
BMW’s Reputation for Performance and Technology
Another reason why many consumers choose BMW over other luxury car brands is because of its reputation for high performance and advanced technology features. BMW has always been at the forefront of automotive innovation, introducing technologies like navigation systems, adaptive suspension, and dynamic stability control that have now become standard across much of the industry.
In addition, BMW has built a name for itself when it comes to delivering exhilarating driving experiences. From the iconic BMW M series to the responsive handling and powerful engines found in models like the 3-Series and 5-Series, BMW consistently offers vehicles that appeal to drivers who appreciate precision and speed behind the wheel.
BMW’s Customer Satisfaction and Brand Loyalty
Last but not least, BMW also scores highly when it comes to customer satisfaction and brand loyalty. In fact, according to a survey conducted by J.D. Power, BMW ranks highest among all luxury car brands in terms of customer satisfaction with dealership service.
Furthermore, studies have shown that BMW enjoys one of the highest rates of brand loyalty among luxury car owners. This suggests that once someone becomes a BMW owner, they are more likely to choose the brand again in the future than switch to another luxury automaker.
“BMW is widely regarded as one of the top luxury car brands on the market today, thanks to its strong reputation for high performance, cutting-edge technology, and long-term value.” -Kelley Blue Book
When it comes to comparing BMW to other luxury car brands like Audi and Mercedes-Benz, there are many factors to consider. From resale value to advanced technology features to customer satisfaction and brand loyalty, BMW consistently ranks highly across the board. Whether you’re a longtime BMW driver or considering purchasing your first luxury vehicle, knowing how BMW stacks up against the competition can help you make an informed decision about which brand is right for you.
Top BMW Models That Hold Their Value
BMW 3 Series
The BMW 3 Series has been a popular choice for luxury car buyers since its introduction in the mid-1970s. It is an attractive, versatile and well-engineered car that appeals to a broad range of drivers. With a reputation for strong performance, sharp handling, high-quality interior materials and excellent fuel efficiency, it’s no surprise that the BMW 3 Series holds its value so well.
A report from Autoblog.com found that over a five-year period, the BMW 3 Series retained an average of 46.6% of its original value, which is significantly above the industry average of 33.8%. Additionally, Carfax.com named the BMW 3 Series as one of the top cars with the lowest depreciation rates.
“The BMW 3 Series remains the unequivocal benchmark for the sports sedan category”– Forbes
The BMW 3 Series is also known for its overall reliability, helping to maintain its long-term value. In fact, US News & World Report ranked the 2021 BMW 3 Series fourth among luxury small cars for reliability.
BMW 5 Series
Like the BMW 3 Series, the BMW 5 Series has enjoyed great success among discerning luxury car buyers. This large luxury car offers impressive levels of comfort, technology and performance along with BMW’s signature driving dynamics.
Premium car resale website, CarsDirect.com, has noted that the BMW 5 series is traditionally considered one of the best models on the market at holding its value. Over a three-year period, a BMW 5 Series can retain around 50% of its original purchase price. As time goes by, this can only improve as used values dip less and less rapidly.
“The BMW 5 Series offers a fantastic mix of performance, comfort, technology, safety features, and value. It’s one of the most well-rounded cars in its class, earning it a spot near the top” –US News
The dual appeal of both style and substance has significantly helped the 5 Series to hold its own over rivals when it comes to resale. In terms of reliability, J.D. Power has ranked the 2021 BMW 5 Series as ‘Great’, further cementing its reputation as a reliable long-term choice for premium car buyers.
Tips for Maintaining Your BMW’s Resale Value
Follow the Recommended Maintenance Schedule
BMW is synonymous with luxury and performance, but these attributes come at a cost. Owning a BMW requires a significant financial commitment, which means that protecting its value should be a priority. One of the best ways to maintain your BMW’s resale value is by following the recommended maintenance schedule.
The maintenance schedule outlines specific service intervals that are necessary to keep your BMW in top condition. This includes regular oil changes, tire rotations, brake inspections, and other services that help prevent problems down the road. Neglecting these services can lead to expensive repairs that damage the value of your car.
In addition to keeping your BMW in good shape, sticking to the maintenance schedule makes it easier to sell in the future. Potential buyers will want to know that the car has been well-maintained and serviced according to manufacturer recommendations.
Keep Detailed Records of Maintenance and Repairs
Maintaining detailed records of all maintenance and repairs performed on your BMW is essential if you want to maximize resale value. Keeping track of every oil change, tire rotation, and repair helps provide potential buyers with a complete history of the vehicle’s care and upkeep.
Not only do detailed records make it easier to sell your BMW, but they also boost confidence in buyers’ minds. They will appreciate knowing precisely what was done to the vehicle and when, so they have an accurate picture of the car’s overall health and longevity.
An additional benefit of meticulous record-keeping is peace of mind. You will not need to worry about whether a particular service was completed or when exactly the last time the brakes were replaced. All this information is quickly accessible when needed.
Keep the Vehicle Clean and Well-Maintained
Cars that are clean, both inside and out, sell for more than those covered in dirt and littered with debris. Keeping your BMW clean and well-maintained at all times is one of the easiest ways to maintain its value.
Clean the exterior regularly to remove dirt, dust, and grime that can cause damage over time; this includes regular washing, waxing, and detailing. Additionally, keep the interior tidy and free of any dirt or stains that may accumulate from daily use. Take care of leather seats by conditioning them periodically.
Maintaining your BMW also means addressing issues immediately as they arise. If you hear a strange sound or notice any dashboard warning lights, have it checked out as soon as possible. Timely repairs will help prevent further damage, so speak up when something seems amiss.
Consider Extended Warranties and Service Plans
Another way to ensure that your BMW holds its value well into the future is by purchasing extended warranties and service plans.
An extended warranty provides additional coverage beyond the standard manufacturer’s warranty, which typically expires after three years or 36,000 miles. This extra coverage helps protect against unexpected expenses related to engine failure, transmission problems, electrical component breakdowns, and other costly repairs.
Service plans are similarly valuable, providing pre-paid maintenance services that are performed at specified intervals. When you purchase a plan upfront, these services cover oil changes, tire rotations, brake inspections, and other routine items that need attention at specific points during the car’s lifespan. Service plans make maintaining your BMW affordable and easy, ensuring that everything necessary is taken care of without hassle or fuss.
“Of course BMW cars tend to hold their value better than most other prestige brands” -Whatcara.com
To answer the question of “Does BMW hold their value?” – according to a report by Autoblog, some models have excellent resale values. It’s no secret that German cars depreciate more slowly than vehicles from other countries.
- The new 2021 BMW M2 is predicted to maintain over 53% of its original purchase price after three years and offer drivers an extremely satisfying driving experience.
- The 2019 X7 lost just $6,640 over the first year and should keep about 60 cents per dollar of depreciation for five full years on average, according to Kelley Blue Book
If you follow the above tips carefully, it will be easy to guarantee that your BMW retains as much value as possible!
Frequently Asked Questions
How well do BMWs retain their value compared to other luxury car brands?
BMW has a reputation for retaining its value well, often outperforming other luxury car brands. Factors such as strong brand recognition, high-quality engineering, and consistent demand contribute to its resale value.
Does the make and model of a BMW affect its resale value?
Yes, the make and model of a BMW can significantly impact its resale value. Generally, higher-end models tend to retain their value better than entry-level models. Additionally, popular models and limited edition releases may hold their value better than less sought-after models.
Do certain features or options on a BMW impact its resale value?
Yes, certain features and options on a BMW can impact its resale value. Features such as a sunroof, leather seats, and advanced technology systems can increase the car’s value. In contrast, outdated technology or a lack of luxury features can decrease the car’s value.
What factors besides the car itself can affect the resale value of a BMW?
Factors such as the car’s age, mileage, and condition can all impact its resale value. Additionally, market conditions and consumer demand for that particular model can affect the car’s value. Other factors such as regional location and the availability of similar cars on the market can also play a role.
Are there any particular BMW models or years that hold their value better than others?
Yes, certain BMW models and years hold their value better than others. For example, the BMW 3 Series and 5 Series tend to hold their value well due to their popularity and reliability. Additionally, BMWs from the early 2000s are often sought after by collectors and enthusiasts, which can increase their value.