BMW Value

BMW are a car and engine manufacturer whose history began in Bavaria and whose name stands for Bayerische Motoren Werke or Bavarian Motor Works. Presently, BMW is well known for producing BMW Mini’s and for owning the company which produces the Rolls-Royce. On average, BMW currently produces nearly one and a half million cars and over a hundred thousand motorbikes a year, marketing these under multiple brand names.

BMW are well known for having second hand prices that do not depreciate as quickly as many of their American counterparts. For instance, a BMW 1 Series, BMW’s smallest car and the kind of car that a working professional with a family might buy, is worth £19,122 after a year and £12,596 after three years which, although it may seem like a large jump, is actually fairly good preservation of value for cars of this sort. After five years it would be worth roughly £9,078 but after seven years it could be worth as little as £6,615. What this tells us is that you stand to save thousands of pounds if you buy a used BMW over a new one, even if you buy one that is only one year old.

Meanwhile an old BMW 8 Series, bought in 1999, is now worth £10,501 which means that it has held its value far better than the BMW 1 Series. A car bought in 1999 would now be over twenty years old and yet it is worth more than a seven year old BMW 1 Series. The reasons for this are complicated to explain and are influenced by many different factors.

A BMW 3 Series sedan after one year is worth £24,236 and after three years  £15,146, depreciating even more quickly than the BMW 1 Series. After five years it will generally be worth  £11,220 and after seven years £7,180. Obviously, this means that BMW’s are cars that should not be bought by anyone looking to preserve their capital. They are a luxury item to be bought buy those who are willing to spend money that they could have otherwise saved in order to get something that appeals to them.

A BMW 5 Series starts out more expensive and so after its first year it is generally worth £31,115. However by year three it is generally only worth £15,998 second hand. Part of the reason for this is that those who are buying more expensive cars will generally only want to buy them new. By year five it’s worth  £11,459 on average and by year seven just £9,129.

In summary, then, BMWs in the past held their value far better than BMW’s of the present which should be treated not as an economical family car but as a luxury item for the professional who may or may not have a professional. If you are buying a BMW 1 Series at the moment you can expect it to have halved it’s value well before the ten year mark and if you are buying a series with a higher number you can expect this to happen even more quickly.