Depreciation

[Giggs11]

Guys why such a beautiful beautiful car with a gorgeous interior that looks like no other BMW does depreciate so rapidly and so much from 100 K all the way up to 20s in few years??

[TON-III]

The more expensive car is the sooner it will loose the price of it. Sad but true.

The 600-series one is just a overpriced 500 one with two doors.

I was among the 1'st ones to buy a one in my neightbourhood a year ago, I bought it as 6 year old/ 40 000 miles ridden under 30% of the new price value ( calculated from additional equipments price).

[Opie55]

Several reasons. It is a car with limited demand under the best of circumstances. They may be pretty, but they are not very practical. The GC is the most practical, but that isn't why people buy them. So the percentage of people who would ever buy one is petty small. Then there is the expense of owning one. Most people who can afford a new one won't own it out of warranty, or they just want to move on to something new. So let's say new it cost $100,000, but only depreciated to $70,000 instead of $30k. Who is the person who can afford a $70k car that would buy a used one without a warranty? Pretty much nobody. The person with $70k to spend will buy a new car. So there is no demand for a used 6 in that range. So the price drops to whatever point creates demand.

[SanDiego640]

I purchased a 2016 640i GC with 31K miles on it recently.

I paid 43% of what the first owner paid for the vehicle, three years ago. Since the dealer made some profit, it means the car depreciated a minimum of 57% in three years.

Good for me. Bad for him.

Rapid depreciation is a result of several factors:

- Low demand in the secondary market
- High repair costs

If 6 series demand was lacking when the vehicles were new, you can expect a similar lack of demand in the secondary market.

This all works great for me. I got a $100K car for $39K.

[JBF650]

As stated above these cars depreciate like a stone due to very high initial purchase price and lack of general buyers wanting cars like a 6 for a fun second car. They aren’t really practical or economical or family oriented hence the buying market for cars like ours is tiny after the first owners are finished with them. I don’t care a fig about any of this tosh.... it works out marvellous for us that have bought them secondhand. I will say big euro GT coupes and convertibles no matter if BMW , Mercedes, audi , jags etcbetc all suffer from eye watering depreciation.
I bought my 2015 650 coupe with 25k on it for 30% of its new car value in Australia, 4 years old and 70% depreciated! Great for me for sure!
Make peace with it and enjoy our gorgeous cars they are marvellous machines and tiny money these days!

[F06msportmia]

Originally Posted by SanDiego640

I purchased a 2016 640i GC with 31K miles on it recently.

I paid 43% of what the first owner paid for the vehicle, three years ago. Since the dealer made some profit, it means the car depreciated a minimum of 57% in three years.

Good for me. Bad for him.

Rapid depreciation is a result of several factors:

- Low demand in the secondary market
- High repair costs

If 6 series demand was lacking when the vehicles were new, you can expect a similar lack of demand in the secondary market.

This all works great for me. I got a $100K car for $39K.

I had the same scenario!

I bought my 2014 GC MSport in 2017 with 33k miles for $39k. The previous owner paid $90K. The car had brand new smell, the backseats never been sat in, it was a good deal...

[hugo_nz]

I paid a 5th of the original sticker price for mine. Low volume, high price cars are perceived to be expensive to run and maintain. This means no big appetite for pre-owned models. Repair costs can be higher due to parts that are bespoke to that model or shared with similar or higher prices low volume models. In the 6-er's case it uses a shortened version of the F10 platform but shares some componentry with the 7series and some Rolls Royce models. The really expensive cars also tend to have cutting edge styling that tends to age fairly quickly which adds to lower resale values. Luckily the Fxx 6er isn't one of them :-)

[mgattmch]

I purchased my 2015 650iX GC in January 2018, mint condition, fully loaded, still under warranty and CPO with only $20k miles on it. Worked out the original owner effectively paid $3/mile in depreciation! Do I love to own/drive this car? Absolutely, but, as soon as the CPO warranty expires I plan to sell the car. Reliability is the reason. Since owning the car the DSC module (electronics that controls all the cars safety features) has failed and been replaced under warranty. As has the steering wheel cassette and most of the camera system. These are all major repairs, fortunately all covered by the original warranty. No complaints about BMW doing the repair work expeditiously and well. The DSC and camera system failures occurred on a road trip to California. BMW Berkeley did a great job arranging for a loaner vehicle, quickly diagnosing the problem, ordering the parts and doing the repairs. Took something like 6 days in total to do both repairs. So in conclusion, poor reliability and ridiculous repair cost are probably the reason why our cars depreciate so fast. By contrast my wife's Lexus RX350 is the most reliable car I have ever owned, as are all the other Lexus cars we have owned.

[BMPOWERED]

Pretty much everything has been said here but I just read an article entitled, "10 Fastest Depreciating Vehicles" and guess what the 6 series was on that list with 69% depreciation (I believe over 5 years). But the 7 series was even higher on the list with 71%!! The reason I point that out is because some of the reasons listed for the 6 series' rapid depreciation has been reasons like, "impractical," "not family friendly," "just an overpriced 5 series," etc. While these are all true, these factors don't apply to the 7, yet the depreciation is even worse. What that tells me is that the underlying reasons have more to do with these cars reliability and the fact that many second hand buyers are scared off by potential repair costs, therefore pushing the price down.

[Qsilver7]

In regards to the "reliability factor" causing rapid depreciation...I'm not going to say it's not true...because there are surely some prime examples...but generally it rolls back into the original market and price.

Regardless of how much you pay to get into the dance (own the car)...the cars mentioned are luxury vehicles that have a lot of options and features. Many or most of these features are electronic and when they fail or glitch...they may not be cheap to fix. Thus regardless of paying less to buy the car...maintaining stays in the same realm as it would be for the original owner.

Thus the problem...if you can afford to pay $50k - $75k for a vehicle...most of those buyers will select a newer car that has a warranty. This makes the price keep dropping until there's a buyer willing to pay for a vehicle that is feature/option packed, has a high probability of high dollar maintenance, yet has no warranty.

Even if the car is reliable...regular maintenance isn't cheap either. So if you are an owner that treats a car like an appliance...then maintenance suffers as you drive it into the ground...dumping it when the repairs cost more than it's worth to keep it.

The upside to this is are buyers that see used luxury vehicles as a bargain, have the income and/or skill to maintain the car. They can end up have a really great vehicle at a great savings. But these are the buyers that usually know or educate themselves so that they know what they're getting into.

[JBF650]

The upside to this is are buyers that see used luxury vehicles as a bargain, have the income and/or skill to maintain the car. They can end up have a really great vehicle at a great savings. But these are the buyers that usually know or educate themselves so that they know what they're getting into.[/QUOTE]

agree with this statement wholeheartedly, spot on. I was initially very ignorant wrt to the 6 series. I knew I liked it very much to look at but was so rare to see them I thought it was way outta my price range and what I was willing to spend looking for a new DD, id dismissed it.
Once I did more research I found out about the 'troublesome' early N63 V8s and once id made up my mind to pursue a 650 I knew it had to be last of them in coupe form.
What I'm astounded by was 'all the car' I was getting for 30% of its original RRP 4 years earlier..... at this price I had reasoned it was acceptable to take this car on , it has an extended warranty and service plan anyway. I had the car checked by BMW and they confirmed it was perfect and had never had an issue or problem. All services were done and the car was pronounced fine. deal done.
The good ones do move/sell albeit slowly but I watch the classifieds and a few I was looking at have now sold, there are a few early cars still advertised and I suspect the people in the know do know about the earlier issues with early cars so again this weighs heavily on their value and indeed they are languishing in the classifieds , some nearly 12 months....

[Walt White Coupe]

So I bought my 2013 650ix when it came off a 3 year lease with 15,000 miles on it with a year left on the factory warranty and a CPO that put their two year warranty. Car window was $100,400 and I bought it for $54,000. The only problem was the driver seat was loose and the manufacturer warranty covered that. I love the fact that I can drive this fantastic car at half the price of a new one because people are afraid it will break and that will put them in the poor house. Hardly. If you want an idea what the worst case scenario is for the vast majority of people is see what an extended warranty costs. Again for the vast majority of people repairs will be less than than cost. Even if that happens, I figure I'm still way ahead of the game for the car I'm driving. I never buy extended warranties because I'd rather be the "house" not the gambler.

[JBF650]

Originally Posted by Walt White Coupe

So I bought my 2013 650ix when it came off a 3 year lease with 15,000 miles on it with a year left on the factory warranty and a CPO that put their two year warranty. Car window was $100,400 and I bought it for $54,000. The only problem was the driver seat was loose and the manufacturer warranty covered that. I love the fact that I can drive this fantastic car at half the price of a new one because people are afraid it will break and that will put them in the poor house. Hardly. If you want an idea what the worst case scenario is for the vast majority of people is see what an extended warranty costs. Again for the vast majority of people repairs will be less than than cost. Even if that happens, I figure I'm still way ahead of the game for the car I'm driving. I never buy extended warranties because I'd rather be the "house" not the gambler.

Walt spot on too! I would never be bothered with 'aftermarket warranties' ...they are ridiculously expensive and I cannot see the point of them. Lets face it, our cars aren't 'that old' that if the engine completely blew up, gearbox fell out diff disintegrated etc etc that we wouldn't have a legitimate claim on BMW...... cmon.
Fair wear and tear has to be expected though such as brakes and tyres ect etc . My car had the extended BMW warranty and service plan on it when I bought it, so good for me. I wouldn't have bought it with my money.... it happened to be extended by the seller I bought it from. Hence I've banked the cash and have it working elsewhere earning interest.
Would I extend in 12 months when it expires... no. I'm fortunate yes, I earn good money and if I needed too I could stump up 5-10 grand for a repair. However I seriously doubt anything could be worth this sort of repair on a near new car....
To have the selling BMW dealer print my cars entire history out and state its fine, they know the car and its a great one was good enough for me and peace of mind purchasing.