[MDJAK]

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So perhaps I'm not as smart as I thought. Now bear with me. I not only suffer from GAS (CAS I guess) but I suffer from buyer's remorse.

I buy and trade cars like some people change their BVDs.

Please don't misunderstand. I'm not bragging. I promise. It's cost me a lot of money, and I'm not rich. I'm not poor either. I work hard, play hard. I know life is short and so get what I want.

In 2015 I bought my first Porsche, a Macan S. After a week I regretted not getting the Macan Turbo and traded in for one. It cost me 5 grand lost. It had 500 miles on it when I traded it in. Ok.

About 8 months later I traded that in for another Macan Turbo with a few different options, etc., and lost 10 grand.

10 months later I traded that in for a 2017 Ford Raptor.

10 months later I traded that for a 2018 Porsche Panamera 4.

I quickly tired of that and traded for a 911.

I could go on, but I think you get my drift. Perhaps it's a sickness, a personality flaw. But I am who I am, for better or worse. It's never caused me to eat burgers instead of a steak, if I felt like having a steak.

So now I trade my last 911T in for a 2020 M5. I used the equity I had in the 911 toward the M5. I thought about the X5m but it wasn't out a month ago at least that I found.

Well now it is and I feel like trading for it. I have 700 miles on my M5, and it's a month old. I figured I'd lose about 10k which was ok by me, negotiate a good discount on the X5M, as we all know car sales as well as most other things are in the crapper.

The dealer first offers me 6 percent off the X5M and then 7.5. I told him I want 10 percent off (which he may have done to move it).

Then he says because my car has been titled it can't be leased so it's worth less (not worthless lol) and they offered me 75k. Really? A 25-30 percent hit on a 4 week old car?

I'm not sure what to take from that. As my title says, either BMWs depreciate like a lead balloon, or it's the fact the vast majority of them are leased that makes it sink in value.

It's a valuable lesson, no pun intended, and so I will either try another dealer or just continue to enjoy my M5 for the time being.

Thanks for allowing me to rant.

[MDJAK]

I was going back and forth with the salesman. The following is the email he just sent me explaining their position:

"Dealers at the moment want to move inventory but do not have any given quota from the manufacturer. BMW do depreciate heavily in the beginning but keep hold their value in the long run. The vehicle you purchased was brand new, BMW has a lot of executive demos which are roughly 20-30k off the msrp and this discount does not include rebates. When we factor in your trade with the kind of vehicles we can purchase at the auction, taking in your trade does not make a lot of sence for us. As BMWs are 99% leased, having a vehicle with a high msrp that cannot be leased is a huge risk as we do not know when we would be able to sell it.
Compared to other makes, BMW offers a huge discount off the msrp, I have a friend at Ford and I constantly hear about their trucks selling over msrp, where as I am willing to offer you a 7.5% discount on a vehicle that was just released last month, even more if we had a quota to meet. A lot of factors go into trades, and these are some of the reasons why.
M5 is a great machine, fastest 4 door sedan on the road, keep it and enjoy it for a bit longer. BMWs build their value in the long run."

[M3PGH]

yes BMW depreciate more than other German cars , because BMW adopted the model of over producing cars and give incentives to move them , so that trickles down to the used car values ...
also expensive big sedans are not that popular in general , so they depreciate even faster than regular BMW vehicles
on the bright side , because BMW leases are cheaper than other companies, the community is much larger than other companies, so it is easier to transfer a lease
to someone else ... and in your situation you could have given an incentive for someone to take over your lease and BMW makes the process fairly easy.
so the lesson is : never buy a BMW unless you plan on keeping it for several years , just lease them and transfer out when you want

[MDJAK]

Ty. Appreciate your input. I don’t lease so that’s out. My wife just laughs when I tell her I’m trading in. But she doesn’t believe in leasing, says you have nothing in the end.

I hear you about sedans. Wasn’t thinking about that before. Should have.

That said, will an X5 M retain value markedly better or on slightly so?

[TrevorM3]

Originally Posted by MDJAK

Ty. Appreciate your input. I don’t lease so that’s out. My wife just laughs when I tell her I’m trading in. But she doesn’t believe in leasing, says you have nothing in the end.

I hear you about sedans. Wasn’t thinking about that before. Should have.

That said, will an X5 M retain value markedly better or on slightly so?

maybe slightly, because it can not only serve as something "quick" but also because it has space for kids. but in the grand scheme of things, they all lose, tremendously. And based of your first post, why even ask?

[mjr24]

Buying high end BMW and Benzes is not the same as an entry level Macan or Panamera. They will depreciate a lot and fast. You pay to play.

[MDJAK]

Originally Posted by TrevorM3

maybe slightly, because it can not only serve as something "quick" but also because it has space for kids. but in the grand scheme of things, they all lose, tremendously. And based of your first post, why even ask?

I ask for 2 reasons. One, I don’t know the answer. Two, while I have lost quite a bit cumulatively, I’ve never faced losing as much so quickly on one deal, and that just seems to be a loss I couldn’t stomach.

I was going to counter. I had asked for 90 for mine with 10 percent off on the X5 M. When he came back at 75 for mine and 6 percent I got him up to 7.5. I was going to say give me 85 and 10 off but figure it’s still a lose lose situation so I may as well enjoy the M5 for a while. Just wish there was someplace to go. Oh well, this too shall pass eventually.

[gblansten]

If you are going to get rid of an M5 after a month please don’t clog up the board with depreciation complaints. Take your hit silently and move on.

[subterFUSE]

I purchased a Mercedes S63 AMG with 22,000 miles on it for $67k cash.

Original sticker price was $170k.


Now THAT is serious depreciation.

[Scott Lawrence]

unless your leasing your vehicle I don't see any point in buying out right a brand new BMW M5. will always lose massive money straight away. my car was like £100k new and I bought it with 3k miles from BMW for £70k its already depreciated from new to when I bought it and now they seem to have held their value and I shouldn't lose over expected money when I come to sell next year.

I also bought a range rover 3 years ago for £75k and in 18 months I sold it back to Range Rover for £41k and it was all singind and dancing range rover vouge autobiography like £150k brand new. Was 2/3 years old when I sold it back . could of cried for weeks. still lose sleep over it now!! haha

[Wolfman64]

Another member on the 8 series side is trying to move his M850 cab. 5 months in. 1900 miles. I think was offered $79k on close to $140k list.
While he paid quite a bit less I think this is the kind of drop you see right now on a sale or trade and it won’t get better.
While I haven’t checked on the X5m I think 10% is a low discount right now.

[frankchn]

It cuts both ways. Car prices are dropping because of the uncertain economic situation, so you'll get a better deal buying a car, and a worse deal selling one.

[M5 F90 (2018)]

Yup the M5s drop like a stone! That's why I waited and did not buy new from the showroom as such, I have learnt my lesson the hard way, however picked up an 8 month old with 25 miles and new was £112,000 with all the goodies. Picked it up for £40k less than the original sticker price. 11 months on and if I sold I suspect I have lost £10k - £15k still. This is not going to help you feel any better I know and you got some balls changing cars so quickly, but hey ho.....fill your boots you have one life!!! Enjoy it.

[Earlando86]

The better question is why do you feel you need the X5M? I'd keep the M5 and just add a regular SUV or truck to the lineup. But be sure next time because you are literally throwing money away. And at the rate that you switch up and jumps between cars to trucks to SUVs, I'm willing to bet you probably need two cars instead of one that you get bored with. Just my take.

[M3PGH]

the current crisis is making depreciation of these cars worse , but they did depreciate a lot before
as far as your wife being against lease ... I hear that sometimes and in all honesty it does not make any sense
if you buy or lease a car for a certain period of time , at the end what matters is the cost of ownership for that particular time frame
say you want to own a 120 k M5 for 6 months
selling price lets say 105 k
lease should be around 1300/ month plus 2 k down
so total cost for 6 month will be 9800 lets say 10 k
if you buy at 2 % interest 5 year loan payment will be 1850 a month
so cost for 6 month is 11,100
now you want to move the car
trade in value is 75 k
so in the buy example you have to bring roughly 20 k to the table because you paid roughly 10 k in principle to make up the difference
so in the lease example you have paid 9800 for 6 months lets say 10 k
I can guarantee you that you can transfer out of the lease for less than 20 k , and a good bet will be 5 k
so net difference will be 15 k savings from leasing
these are rough estimates and not included taxes etc but you get the point

[norbtx]

Its the silly engineering descisions BMW makes that makes maintenance costly down the road. Like the brace bolts that has to be take out to replace the air filters only have a limited number of cycles. Or the ultra susceptible oil cooler placement. This is what prevents resale value staying high.

[gblansten]

Originally Posted by norbtx

Its the silly engineering descisions BMW makes that makes maintenance costly down the road. Like the brace bolts that has to be take out to replace the air filters only have a limited number of cycles. Or the ultra susceptible oil cooler placement. This is what prevents resale value staying high.

I doubt buyers of a used M5 are affected by oil pan concerns when they make bids on the cars. I definitely agree the overall perception of the high cost of upkeep plays a role in depreciation.

[Jimmy K]

I came from a 2018 X5M to a 2019 M5C. My advice...don't do it! The X5M was nice and comfy, but when u stomp on the gas, you will feel numbness and regret for ditching the M5.

I too have been bitten by the new car bug lately. 2016 S8 plus...rear ended. totaled out.
2017 Hellcat Charger...nice of u like loud, spinning tires, and have a mullet. Got rid of it.
2018 X5M...boring AF. Got rid of it.
2019 M5C...keeper!

Before all this I had a 2005 turbo S that was glorious and would still be driving it had that 3rd kid not popped out. Lol

[Archimedes65]

All high end cars, particularly BMWs, take a big 'drive-off the lot' depreciation hit, but you're also feeling the market situation. The reason why you think you can negotiate 10% off the X is the same reason you can't get a great trade right now.

I paid $104k for a car with a $114k sticker and figured it was worth about $85k the day I drove it off the lot. Today, I'd say it's worth about $75k in trade, $80k in private sale. 9 months old and 3,000 miles on the clock.

[marcvtec]

Originally Posted by subterFUSE

I purchased a Mercedes S63 AMG with 22,000 miles on it for $67k cash.

Original sticker price was $170k.


Now THAT is serious depreciation.

Cool a 2012, what a surprise.

[marcvtec]

And to the OP, yes all cars lose their value, I feel typing this is a waste of my time, as you lost $20, on that car tomorrow.

[MDJAK]

So I very much appreciate all replies. I’m always open to learning and you have taught me things I did not know. My first BMW was a 330xi shortly after it came out early 2000s if I’m recalling right . I then moved to mostly Japanese vehicles. In 2010 when I retired from NYS Supreme Court (I’m a court reporter), I leased an X5. It had a similar inline 6 to the 330xi, smooth and silky, along with a great smooth tranny.

I then began to buy the Porsches I mentioned and they were very steady when it came to depreciation and so spoiled me.

In fact, if you look at BMW of Ridgefield, Ct website, you will see the white 911T I traded for the M5. They are asking 89k. They gave me 82 in trade. It’s a 2019 with 8k miles. The Porsche dealer offered me 85 in trade toward a $135k 2020 911 Carrera S. The sticker on the 911 I traded was 122k. I paid around 111k. That’s why I was so surprised by the hit on the M5.

As for the suggestion above about getting an SUV in addition to the M5, I have a 2019 Raptor as my everyday drive.

Also, as I’m sure most realize, it was not nor is it my intention to put down the M5. It’s a supremely comfortable and incredibly quick car that I will stick with.

Thanks again.