Why do BMWs depreciate so fast?


why do bmws depreciate so fast

Despite BMWs being luxury vehicles that are famous for their satisfying driving experience, they depreciate quicker than most vehicle brands. The biggest reason for that is the stigma around BMW drivers. Inexperienced or reckless drivers mean aggressive driving and less maintenance, which greatly lowers the price of second-hand BMWs down, often making them a good deal.

Most new German cars depreciate quickly for some of the same reasons as BMW. Let’s take a look at why.

Degradable rubber

One of the biggest reasons behind BMWs depreciating quickly is the use of degradable rubber that the German government has imposed on all the car manufacturers in the country. All major car manufacturers in Germany like Porsche, Volkswagen, Opel, BMW, Audi, Mercedes-Benz, and others, follow these guidelines.

Synthetic rubber lasts much longer than 10 years, but has been prohibited. Because of the degradable rubber used, many parts on your average BMW tend to break down after a few years of service. This is one of the main reasons why second-hand BMWs break down so easily, their plastic parts are degradable and not synthetic.

If German cars were built with the same rubber parts as Japanese cars or American ones are, their engines would probably be unstoppable and would last for many years.

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Repairs for BMWs are more complex than they should be

German cars, namely BMWs, are not easy to work on at all. A simple repair should take between 2 – 3 hours, yet on a BMW or a Mercedes-Benz it would take double or triple that time, and not to mention labor costs are much higher.

Despite the fact that a rubber gasket might cost less than $10 itself, in the end, it might cost more than $1,000 to replace since it will take a few hours for a mechanic to reach it due to a huge V12 engine, barely fitting in the engine bay, making it almost impossible to reach a single bolt to remove.

Keeping in mind that older cars need more repairs than newer ones, all of this gets factored into the price, since you would normally expect repairs when you purchase a second-hand car. This is one of the main reasons for the quick depreciation of BMW vehicles.

New drivers often pick BMWs

There is a stigma around BMW drivers for being aggressive, inexperienced, and rude. Aggressive driving causes wear and tear on both interior, exterior parts, and the engine of your vehicle. BMW drivers are jerks, or at least movies portray them so.

Despite movies raising the awareness of consumers worldwide for the car brand, it also leads you to think that if you purchase a BMW second-hand, it might be on the brink of destruction already.

Regardless of whether this is true or not, it greatly lowers the price of second-hand BMWs. The real issue here is that there are a lot of new drivers that hop into BMWs and inexperienced drivers mean less maintenance for the vehicle, which leads to depreciation and engine damage over time.

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Leases account for more than 50 percent of the BMW vehicles

Supply and demand play a major role in forming the price of any product out there, regardless of its brand image. Since there are many leased BMWs, that means that there is a large influx of 2 and 3-year-old BMWs hitting the second-hand car market. The more cars there are of a certain model on the market, the more competition there is to sell, so the price decreases greatly.

The first-year depreciation of BMW models is brutal. BMW, being a status symbol, relies on its customers to enjoy the smell of genuine leather in a car, which disappears after the first owner. Moreover, when you lease a car and its warranty is about to end after the 3rd year of ownership you tend to look at how to dispose of it quickly.

Many people know this and are unwilling to purchase a second-hand BMW unless it is at a great discount since they will need to pay for the post-warranty repairs.

BMW is a car of precise engineering

Being a vehicle of precise engineering, BMWs need proper maintenance and servicing. If your car is out of warranty and it has been repaired at a local mechanic, who isn’t licensed to do BMW repairs, they might have done more harm than good on the car.

Owners tend to sell their vehicles right before they show signs of a need for a major service or repair for a reason. After a couple of these sales, the public has now gotten a grasp of the fact that they should be wary of fraudulent BMW sellers.

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Many reviewers share that if you try to save money by not replacing all the components in your BMWs coolant system regularly (every hundred thousand miles) you might end up with a blown head gasket which will cost more than $4,000 to repair.

Problems with buying a used BMW

What are the most common issues second-hand BMWs experience?

The most popular BMW models experience common issues like a timing-belt failure, electronics malfunction, and a high-pressure fuel pump, which might result in poor acceleration, and cause your engine to stutter at a higher speed. This might further damage it or even stop it from turning over at all.

Is it worth it to purchase a second-hand BMW car?

BMWs are certainly not for everyone. BMW cars offer sheer driving pleasure, but at the price of quite a bit of repair costs. In the end, the greatly discounted price of a second-hand BMW can end up costing you much more in the form of repairs and ownership costs.

Keep that in mind when purchasing a used BMW. Despite its issues, BMW delivers power and entertainment like no other vehicle, which makes second-hand BMWs a popular choice. Just make sure you find one that has been well-taken care of and if in good condition.

Which are the most reliable BMW models?

The most reliable BMW models you can purchase are the E90 325i and 328i. The 1990s 3 Series BMWs became famous for their almost bulletproof engines that tend to last more than 200,000 or even 300,000 miles on some occasions. Other great BMWs to purchase are the 2000 – 2006 BMW 3 Series, which carry a similarly reliable drivetrain.

why do bmws depreciate so fast

Dan Gurbalov

Why do you love cars? I love the sound of most gasoline engines. I love the smell too.

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