[Ghasley]

Perhaps you have to honestly identify who the second owner (and beyond) may or may not be. This is actually far more complicated than Merino or massaging seats vs neither. Is the demand there for the vehicle from a group who needs to finance? Operating/insurance costs typically matters more to someone trying to fit a desired monthly budget. Also depends a great deal on how much a given financing entity will finance and at what interest rate for this particular demographic.

A typical new 911 buyer will also consider a gently used five year old 911 with 20k miles and write a check. A typical new X5 buyer is NOT usually the buyer who would consider a five year old X5 whether it has 20k miles or the more than likely mileage in the ballpark of 75k miles. As someone pointed out earlier, most modern BMW’s are consummables rather than a vehicle that occupies a different strata like the 911. Another pointed out that 4runners hold their values very well. 4runners (and moreover Land Cruisers) enjoy a second life when they reach a certain age where they become dedicated off roaders/rock crawlers or as is more popular these day, as overlanders. They actually begin to escalate in value after that point.

In short, in the secondary market, if a particular vehicle requires financing or it invokes cost/availability of mainetenance anxiety then it will continue to depreciate at a higher rate. That kindof describes most modern BMW’s.

[Laird_Williams]

Originally Posted by Laird_Williams

The point is that many of us do not view our cars as financial assets, but instead as consumables. We do not buy them for their resale value, we buy them to use and enjoy them. The fact that you seem to want to view everything in your life through a finance lens does not meant all of us do.

Oh, I will still make at least some effort to get what I can out of it when the time comes (last car got sold to CarMax, so I clearly don’t try that hard either). The point is that it is not a significant factor when I make the purchase, as other factors dominate instead. (I know, multidimensional decision making is nuanced, but I think even you can imagine how some of us might have different priorities than you do when making a car buying decision.)

When I sell the vehicle, I will simply view the delta between what I paid originally and what I “get back” as the amount of it I consumed. As long as I find that acceptable for the benefits achieved, I don’t look back. I am probably looking forward too much to the next one, since in all likelihood the car is 8-10 years old and a replacement will be a real pleasure.

[travwill]

This seems pretty reasonable or what I would expect. 5 years after paying 90k to sell in the 50k+ range seems to make sense for then a used nicer X5.

[AGONXF30]

What are people arguing about here? It’s a luxury car. It depreciates like crazy! If you buy a car wanting it to hold value, buy a Toyota 4Runner or Tacoma. Even then they lose value!

I buy these things to keep for a while, so depreciation is not an issue. Cars aren’t assets.

[Giggler]

Originally Posted by Ghasley

Perhaps you have to honestly identify who the second owner (and beyond) may or may not be. This is actually far more complicated than Merino or massaging seats vs neither. Is the demand there for the vehicle from a group who needs to finance? Operating/insurance costs typically matters more to someone trying to fit a desired monthly budget. Also depends a great deal on how much a given financing entity will finance and at what interest rate for this particular demographic..

The marked is broad enough to where you have to generalize, but I would argue the typical X5 is bought on lease and returned/resold at the 36 month mark. Therefore, the majority of X5’s being sold at the 5 year mark are 2nd owners. You can actually filter by 1st or 2nd owner on cars.com for the 2018 and 2019 model year and this is confirmed.

So who buys a lease return and drives it for two years and sells it? Someone who doesn’t care about their money and/or doesn’t care about maximizing the value on the sale of their car… hence a poor depreciation number.

Edit; By the way… as I pointed out in a previous post: The G05 is JUST NOW hitting the 5 year mark so the data in this study, assuming it’s a gathering of two to three years of resale data at the 5 year mark, would have been gathered from 2016, 2017, 2018 X5’s from the F15 platform.

[AGONXF30]

Originally Posted by Giggler

The marked is broad enough to where you have to generalize, but I would argue the typical X5 is bought on lease and returned/resold at the 36 month mark. Therefore, the majority of X5’s being sold at the 5 year mark are 2nd owners. You can actually filter by 1st or 2nd owner on cars.com for the 2018 and 2019 model year and this is confirmed.

So who buys a lease return and drives it for two years and sells it? Someone who doesn’t care about their money and/or doesn’t care about maximizing the value on the sale of their car… hence a poor depreciation number.

At that point the second owner is only loosing about 10 percent for two years of use……. Most 36 MO X5 have already lost about 40%. Which is why is great to buy CPO with low miles!

[Giggler]

Originally Posted by AGONXF30

At that point the second owner is only loosing about 10 percent for two years of use……. Most 36 MO X5 have already lost about 40%. Which is why is great to buy CPO with low miles!

For three year old X5’s in the 20 to 40k miles range (one owner, no accidents) Near where I live, I’m seeing 25 to 30% depreciation on certified pre owned sold through the dealership.. no private party sales. The people trading it in probably sold it for 40% off though. Sort of a reminder that if you sell your car to a dealership you’re taking a 10 to 15% hit.

[AGONXF30]

Originally Posted by Giggler

For three year old X5’s in the 20 to 40k miles range (one owner, no accidents) Near where I live, I’m seeing 25 to 30% depreciation on certified pre owned sold through the dealership.. no private party sales. The people trading it in probably sold it for 40% off though. Sort of a reminder that if you sell your car to a dealership you’re taking a 10 to 15% hit.

Not my experience. 20 to 30K miles X5 even with CPO at 40% discounts after the three year leases (CPO are usually one owner and just off a three year lease and generally speaking no accidents). No CPO is even more discounts.

Go to BMW USA and search for CPO. I just saw a few nealy fully loaded 75 to 80K USD new X5 CPO going for low 50K.

[swainbmw]

All I’m going to say about this is buy what you like drive what you like don’t worry about it you may not be here tomorrow who gives a rats ass about the depreciation

[swainbmw]

Genesis are for people who want a bmw or merk but are to cheap or can’t afford one but buy Hyundai junk and make there self Believe that it’s better quality not ..

[T3PO]

Originally Posted by AGONXF30

What are people arguing about here? It’s a luxury car. It depreciates like crazy! If you buy a car wanting it to hold value, buy a Toyota 4Runner or Tacoma. Even then they lose value!

I buy these things to keep for a while, so depreciation is not an issue. Cars aren’t assets.

A car is an asset, saying cars are not an asset is a poor statement. A better way to phrase is, “they are a depreciating asset”.

[swainbmw]

Originally Posted by AGONXF30

Not my experience. 20 to 30K miles X5 even with CPO at 40% discounts after the three year leases (CPO are usually one owner and just off a three year lease and generally speaking no accidents). No CPO is even more discounts.

Go to BMW USA and search for CPO. I just saw a few nealy fully loaded 75 to 80K USD new X5 CPO going for low 50K.

Exactly they still bring high dollar .

[AGONXF30]

Originally Posted by swainbmw

Exactly they still bring high dollar .

50K for a car that was 80K new is a 40 percent hit in three years. Great for the second owner.

[Mattl0806]

Worth mentioning, outside of covid time periods, brand new x5 40is typically range in the 8-12% discount from msrp. Admittedly I don’t know what the discounts averaged 5 years ago… if they were around these levels and if you are benchmarking depreciation % to msrp then this is not reflective of the 1st buyer’s depreciation and also why the x5 looks so bad relative to another brand that typically trades at or around msrp…. Every manufacturer has different sales tactics and bmw likes to use large discounts on their high volume cars which will make depreciation look like crap.

[AGONXF30]

Originally Posted by Mattl0806

Worth mentioning, outside of covid time periods, brand new x5 40is typically range in the 8-12% discount from msrp. Admittedly I don’t know what the discounts averaged 5 years ago… if they were around these levels and if you are benchmarking depreciation % to msrp then this is not reflective of the 1st buyer’s depreciation and also why the x5 looks so bad relative to another brand that typically trades at or around msrp…. Every manufacturer has different sales tactics and bmw likes to use large discounts on their high volume cars which will make depreciation look like crap.

BMW likes to discount certain models with certain options that have sat in the lot (dealers are the ones really offering the discounts). Well optioned cars are usually ordered and not as discounted new, but that varies location to location it feels like.

[Mattl0806]

Originally Posted by AGONXF30

BMW likes to discount certain models with certain options that have sat in the lot (dealers are the ones really offering the discounts). Well optioned cars are usually ordered and not as discounted new, but that varies location to location it feels like.

Sorry but have to disagree with options and custom orders impacting discounts.

If you’re connected into the broker market you will understand. Right now - anyone can custom order an x5 40i to your perfect spec with every option you can check @ 8.5% off msrp before the additional incentives like loyalty and such. The effective discount with the additional discounts will be > 11% given current programs of 1500 loyalty and I think an extra 1000 cash off.

Region can vary a little but if you’re willing to travel a little a bit it really has no impact.

.

[Photographer918]

Originally Posted by AGONXF30

What are people arguing about here? It’s a luxury car. It depreciates like crazy! If you buy a car wanting it to hold value, buy a Toyota 4Runner or Tacoma. Even then they lose value!

I buy these things to keep for a while, so depreciation is not an issue. Cars aren’t assets.

8 year old Tundra with 82,000 miles and in need of $6,500 of body work returned $0.46 for every $1 spent during the initial new purchase. So yes, Toyotas lose value, but had I repaired it return would have been closer to $0.58 -0.60. They lose value a lot slower than anything else…..

[BeEmVee]

Originally Posted by Mattl0806

Worth mentioning, outside of covid time periods, brand new x5 40is typically range in the 8-12% discount from msrp. Admittedly I don’t know what the discounts averaged 5 years ago… if they were around these levels and if you are benchmarking depreciation % to msrp then this is not reflective of the 1st buyer’s depreciation and also why the x5 looks so bad relative to another brand that typically trades at or around msrp…. Every manufacturer has different sales tactics and bmw likes to use large discounts on their high volume cars which will make depreciation look like crap.

8-12% can be accurate after incentives (if you qualify, you’re very lucky on pricing, and you have an inexpensive build) but I don’t believe anyone is getting much over 8% off MSRP for a new 2024 x5 40i LCI. Maybe a new 2023 yeah. Some are having a hard time getting to the 4-6% range and buy close to MSRP or 2-3% due to their local market availability. If you’re buying the last year before a new facelift or generation comes out for example then yeah 8-12% is possible. Lot of pricing info on this forum.

[Mattl0806]

Originally Posted by BeEmVee

8-12% can be accurate after incentives (if you qualify, you’re very lucky on pricing, and you have an inexpensive build) but I don’t believe anyone is getting much over 8% off MSRP for a new 2024 x5 40i LCI. Maybe a new 2023 yeah. Some are having a hard time getting to the 4-6% range and buy close to MSRP or 2-3% due to their local market availability. If you’re buying the last year before a new facelift or generation comes out for example then yeah 8-12% is possible. Lot of pricing info on this forum.

Sorry I’m not just saying my random beliefs on pricing. This is a public market and I’m sorry you don’t know about it and likely are over paying for your bmws.

https://forum.leasehackr.com/c/marketplace/northeast/15

Please go to this website - find bmw brokers and look at their pricing on brand new 24 LCIs. Build or in stock. They are all north of 8% off before incentives.

[BeEmVee]

Originally Posted by Mattl0806

Sorry I’m not just saying my random beliefs on pricing. This is a public market and I’m sorry you don’t know about it and likely are over paying for your bmws.

https://forum.leasehackr.com/c/marketplace/northeast/15

Please go to this website - find bmw brokers and look at their pricing on brand new 24 LCIs. Build or in stock. They are all north of 8% off before incentives.

Nice advertising. Gotta love those broker fees.

[Mattl0806]

I’m not advertising. There are plenty of people on this forum who’ve seen me around and can attest to this.

I’m simply trying to help people as I’ve been the person over paying before. A 599 broker fee on a 80k car is <1%. A small price to pay on 8.5%. Continue in your world of ignorance and overpay. I don’t care, no skin off my back. But don’t sit here and try to educate me on market pricing. I know where prices are as it’s simple and easy to know if you spend just a few minutes educating yourself..

[Mattl0806]

Originally Posted by BeEmVee

Nice advertising. Gotta love those broker fees.

Just such an infuriating ignorant assumption on your part. Maybe if I called out a specific broker I could understand your still ridiculous leap on my motivations. But for me to be accused of advertising when posting a public forum “marketplace” with no specific mention of any specific business is just ridiculous…. Go pay msrp buddy. Have fun