On average, a new BMW will lose approximately 23.75% of its original value in the first year of ownership. Five-year depreciation rates for the most popular BMW models average over 50%\u2014well above the average for new vehicles.<\/p>\n\n\n\n
All vehicles lose value over time\u2014but some lose it faster than others. If you\u2019re in the market for a used BMW\u2014or hoping to sell your own\u2014knowing about each model\u2019s depreciation rate can help you get the best deal possible. It\u2019s also helpful for keeping track of loan payments and interest, and it can be a good indicator of overall vehicle reliability. But depreciation is one of the hidden costs of car ownership: car buyers don\u2019t usually factor it into their budget on top of the sticker price.<\/p>\n\n\n\n
BMWs are beloved for their driving dynamics\u2014but not their steep depreciation rates. According to U.S. News and World Report, the BMW 7 Series sedan has the highest new car depreciation rate, losing up to 72.6% of its value in just five years.<\/p>\n\n\n\n
Other fast-depreciating BMW models include the i3 electric hatchback, which depreciates by an estimated 70.9% in five years according to Forbes, and the 5 Series sedan, which can lose around 69% of its value by the five-year mark.<\/p>\n\n\n\n
On the other hand, not all BMWs depreciate so rapidly. Take the 2 Series coupe and the X1 crossover, which lose just 47% and 48% of their value, respectively, in the first five years. That\u2019s still above the expected rate for the average vehicle, but it\u2019s not bad for luxury cars.<\/p>\n\n\n\n
You\u2019ve probably heard someone say that your car loses value the minute you drive it away from the dealership. Depreciation represents the difference between what you paid for your car and the value it has left. It can be calculated based on:<\/p>\n\n\n\n
The average five-year depreciation rate for new vehicles is approximately 40%, with close to 20% of that value lost in the first year alone. But there aren\u2019t any hard and fast rules for calculating depreciation, which is why you\u2019ll see slightly different estimates\u2014even for the same model. If your car is in an accident, if you don\u2019t keep up with regular maintenance, or if you simply use it a lot, it will depreciate faster. A car with a high reputation\u2014like, say, a Bimmer\u2014will also lose value more quickly than a car that had less cachet to begin with.<\/p>\n\n\n\n
Depreciation is one of the most overlooked parts of the true cost of car ownership. Along with insurance, maintenance costs, and repair costs, depreciation makes up a big percentage of the price of car ownership. It\u2019s also important to keep an eye on if you\u2019re in the market for a used car.<\/p>\n\n\n\n
Unfortunately, yes. While luxury sedans, SUVs, and sports cars tend to depreciate faster, on average, than your average Honda or Toyota, BMW is particularly notorious for its cars\u2019 fast-dropping resale values.<\/p>\n\n\n\n
However, some other high-end cars have depreciation rates close to BMW\u2019s. The Audi A6 and Mercedes-Benz E-Class, for instance, both lose about 69% of their value in five years. It\u2019s not just luxury cars, either: the famously affordable Nissan Leaf electric car has an average depreciation rate of just over 70% in five years.<\/p>\n\n\n\n
At the other end of the spectrum, you\u2019ll find the lowest depreciation rates among rugged SUVs and trucks like the Jeep Wrangler Unlimited and the Toyota Tacoma and Tundra. But the Porsche 911 also has surprisingly low depreciation rates for a sports car, losing just 12.8% of its value over five years!<\/p>\n\n\n\n
The tables below show average one-year, three-year, and five-year depreciation rates for the current most popular BMW models, based on data from Edmunds.<\/p>\n\n\n\n
Keep in mind that all these numbers are estimates based on 15,000 miles of use per year and assuming a regular maintenance schedule is followed. The residual value shown for each model is based on the purchase price shown in the top row of each table (estimated for the 2022 base model). The actual resale value of your vehicle will vary based on model year, MSRP, trim level, options, and condition.<\/p>\n\n\n\n