# BMW loses 50% of value in less than 3 years ?



## 1love (Nov 10, 2007)

ish said:


> Hmmmmmm have yeah looked around lately??????
> 
> Everything is worth less then it used to be. The value of the car is the least of it !


:rofl:

+1


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## cwinter (Feb 3, 2009)

chasz17 said:


> Always _lease_ a NEW BMW and always _buy_ a USED BMW. This is true for most high end cars.


I can see the sense in this but to me, I look at it differently. If I want t keep a car for a long time, I'd prefer getting it new. This obviously takes into account other factors than just finances.

If I know I'll get a new car within 3-5 years, lease is the way to go.


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## Alpine300ZHP (Jan 31, 2007)

Slaymaster said:


> So does that mean we have, "Twin, Twin Turbo 535's"? :thumbup: Where is your pics???


:rofl: Yeah...guess that is what it means. Mine is Tiag over black just the same as yours. I have 6 MT and do not know if you have that or sport auto. In any event, they both look the same externally. Good taste you have Slay. :thumbup: No pics yet...have not had time to take some...one day. Have been too busy working and driving the 535.


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## [email protected] (Nov 21, 2008)

a wise man on the internet once said "A car is not an investment."

Sell it private party, you can make an ad right here in the classifieds of bimmerfest.


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## bcworkz (Dec 18, 2009)

+1 on leasing new. Seems like the residual value in the lease is always more than the market value of the same car at the end of the lease, much more the wholesale auction price. You'd think they'd learn, but it's a good deal for us. Must be an intentional incentive to get people into leases. I don't really see why, even with lower residuals, the lease is still more attractive for most people, and then some may even take the buy option.


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## roverT (May 16, 2005)

I do a lot of marketing with the big 3 in Canada. Having a car half itself in 3 years is pretty good. Most GM cars that are still on the lot after one year are worth close to 50% of it's 1st selling price. Used domestic mainstream vehicles can easily sell for half it's value in 1 year.


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## Manu (Jul 21, 2005)

bcworkz said:


> +1 on leasing new. Seems like the residual value in the lease is always more than the market value of the same car at the end of the lease, much more the wholesale auction price. You'd think they'd learn, but it's a good deal for us. Must be an intentional incentive to get people into leases. I don't really see why, even with lower residuals, the lease is still more attractive for most people, and then some may even take the buy option.


If indeed you get a higher residual value than the market then it is much better to lease but it really doesn't make any financial sense for BMW. Normally, the residual value should be exactly what a dealer would be paying for a similar car if he were to buy it. :dunno: In any case, if this is the case, do it !!!


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## mtbscott (Jul 16, 2003)

+1 on the used. Just picked up a 2007 MZ4 Coupe, 18K miles, still with warranty/maintenance for another year, for $33K. It was $58K new (owner probably paid sticker or close to it because it was way before the incentives started). My E46 M3 was a 7 month old CPO car when I bought it for $47K, $8K off MSRP. Sold it two and a half years later with 57K miles for $31K, not bad for the time I had it.


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## md7562 (Nov 28, 2008)

Elias said:


> +1 This is great advise!





chasz17 said:


> Always _lease_ a NEW BMW and always _buy_ a USED BMW. This is true for most high end cars.


Have all you guys that think it's such a great idea to lease a new BMW looked into it lately?

After the total ass kicking BMWFS and banks took in the last two years they have set residuals at totally ridiculous levels. Personally, I think they've over compensated from the drubbing and purchasing a car is a better deal. My 650 vert had the highest percentage resale value of all cars the year I bought it and thus a 63% residual (3 yr/36k) on the lease. Have you checked lately? Not pretty. M cars are even worse. Hell, I opted to buy the E93 I have on order after about 30 secs discussing BMWFS lease terms. My credit union isn't even in the lease business anymore after the "bath" they took. Anyway, for a few hundred more per month I'll own it outright 6-8 months after the lease would have expired. Think I saw a residual on a M3 cited the other day below 50%. I understand that nothing precludes one from buying and selling their leased car if the residual is artificially low, but one still has the hassle and everyone wants to buy at below wholesale anyway. Sadly, with the reduced number of people that can afford to buy these cars, even used, it's NOT a seller's market.

By the way, I don't find the percentage decline to be that different in luxury or basic transportation vehicles. The problem is that in absolute dollar terms you lose twice as much on a car that costs twice as much, etc. Comes with the territory. Life to too short to drive a Kia.


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## chasz17 (May 4, 2007)

"Anyway for a few hundred more per month..." Are you kidding? Where did you learn to buy a car? You just spent an additional 10 to 15 thousand dollars over three years. Perhaps I'm missing something...


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## brando2112 (Feb 18, 2010)

*Depreciation*

 Unfortunately, all cars are depreciating assets. That is how a lease is calculated - on the residual value. If your car is worth 50% after 3 years consider that a gift. Usually it is much lower. I work for a Premier Auto Group with BMW included. Our store sells Jaguars and Land Rovers as well as Volvos. After 3 years our leasing company is saying a $50,000 Volvo XC 90 will be worth 29%. No way around it.


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