What is the Resale Value of BMW Cars? Factors That Impact Depreciation

BMW is synonymous with luxury and performance. Driving a BMW often represents a status symbol and confers a certain prestige. However, like all vehicles, BMWs depreciate over time as they age and lose value in the used car market. This leads many potential BMW buyers to ask:

What is the resale value of BMW cars and SUVs? Which BMW models hold their value the best and worst? What factors affect BMW depreciation rates?

These are important questions to consider when purchasing a new or used BMW. In this detailed guide, we will cover everything you need to know about BMW resale values across different models along with tips for maximizing your BMW’s value.

What Impacts BMW Resale Value?

Several key factors determine how well a BMW model will retain its value over time:

Mileage and Overall Condition

The mileage and condition of a used BMW have a very significant impact on resale value. Models with lower miles tend to sell for much higher prices versus higher mileage examples of the same car.

BMWs that have been well maintained and kept in excellent mechanical and cosmetic condition suffer less depreciation compared to those that have wear, damage, or mechanical issues. One-owner cars also often command a premium.

Model Year and Popularity

The model year and popularity of a particular BMW model influence resale pricing. More in-demand BMWs like the 3 Series generally hold value better.

Additionally, later model year versions of the same model tend to retain more value. A 2018 330i will typically sell for more than a 2015 model due to being newer.

Factory Options and Packages

BMWs loaded with popular options and packages like advanced driver aids, luxury features, and performance enhancements tend to have higher resale values.

For example, a well-equipped 340i with the M Sport, Premium, and Executive packages will sell for more than a base model stripped of options. This is because desirable options raise interest among used BMW buyers.

Maintenance History

BMW models that come with complete maintenance records from authorized BMW dealership service centers hold significantly more value. This documented history provides confidence in proper mechanical upkeep.

Cars without maintenance paperwork or accidents reported on their history often suffer greater depreciation. Savvy used BMW buyers view service history as a proxy for overall condition.

Local Market Supply and Demand

Local market factors also influence what BMW models are in high demand and which ones sit at dealerships. BMW resale values are often higher in markets where certain models are harder to find.

For example, the BMW M3 holds exceptionally strong value in markets with limited inventory and many interested buyers. Meanwhile, less popular models like the 5 Series GT may depreciate faster in regions with lower demand.

Which BMW Models Have the Highest Resale Value?

While no BMW is immune to depreciation, some models hold their value remarkably well. Here are the BMW cars and SUVs with the strongest resale value:

BMW 3 Series

The 3 Series remains BMW’s most popular model and a leading choice for luxury sport sedans. As BMW’s core model, the 3 Series has earned a reputation for quality, handling, and performance. This model offers a good balance of practicality and luxury.

In the compact luxury segment, the BMW 3 Series consistently posts the lowest depreciation rates and highest resale values. Even base models hold value well, while the high-performance M3 is coveted on the used market. Those wanting a practical and prestigious sedan that retains value would be wise to choose a 3 Series.

BMW 5 Series

Slightly larger than the 3 Series, BMW’s midsize 5 Series also boasts excellent resale values across all body styles including sedan, wagon, and “Gran Turismo” hatchback. This makes the practical and luxurious 5 Series a smart buy for those who favor larger BMWs.

While not quite as sought after as the smaller 3 Series, well-kept 5 Series models continue to enjoy strong used pricing and slower depreciation thanks to BMW’s reputation in this segment. Those needing more passenger and cargo room should consider a pre-owned 5 Series.

BMW X3 and X5 SUVs

BMW’s X3 compact luxury SUV and X5 midsize crossover consistently rate among the slowest depreciating SUVs on the market. The X3 and X5 offer the prestige, driving dynamics, and capabilities expected from BMW in versatile SUV packages.

Given their family-friendly utility, abundance of technology features, available all-wheel drive, and famous BMW badge, pre-owned X3 and X5 SUVs retain impressive value. These BMW SUVs strike an appealing balance between luxury and practicality.

BMW M High-Performance Models

BMW’s legendary “M” division produces adrenaline-pumping performance versions of BMW’s finest sedans, coupes, and SUVs. From the M3 and M5 to the M6 Gran Coupe and X5 M, these special models offer track-capable speed paired with everyday drivability.

Low production numbers combine with the renown BMW M cachet to give pre-owned M models incredible resale power. Very low miles and pristine condition further preserve used values, making BMW M cars a smart long-term value.

Limited Edition and Rare BMW Models

Occasionally BMW produces special limited edition models celebrating anniversaries or debuting exclusive options. Recent examples include the 30th Anniversary M5, M2 CS, and X7 Dark Shadow Edition.

These low production special editions receive lots of interest from BMW enthusiasts and collectors when they eventually hit the used market. Exclusivity translates into higher used BMW pricing and lower depreciation for properly kept limited edition models.

Which BMW Models Depreciate the Fastest?

On the flip side, not all BMW offerings demonstrate impressive long-term value retention. Here are the models most susceptible to hefty depreciation:

BMW 7 Series Sedan

BMW’s flagship full-size luxury sedan has long stood for opulent luxury. However, used prices on 7 Series sedans plunge quickly making this BMW’s fastest depreciating model. Massive discounts on new 7 Series compound this issue.

Many buyers shy away from high mileage used 7 Series models given their complex electronics and higher ownership costs. Savvy buyers target newer low-mileage examples or look to the similar 5 Series to find better BMW value.

BMW 6 Series Gran Coupe

The gorgeous but niche 6 Series Gran Coupe offers sleek coupe styling with four doors. However, this model sits in an odd spot in BMW’s lineup and has never sold in high volumes. As a result, used 6 Series models face steeper than average depreciation.

With its cramped rear seat and high price, the 6 Series Gran Coupe has limited appeal to most used luxury buyers. This causes an imbalance in supply and demand that depresses values.

BMW i3 and i8

BMW’s early forays into electric vehicles, the i3 compact EV hatchback and i8 performance plug-in hybrid, suffer from very steep depreciation. The limited range and charging infrastructure of early EVs make the used values plunge.

High voltage battery replacement costs down the road, still relatively limited range, and not being fully gasoline-free contribute to rapidly declining i3 and i8 resale values. The tech is improving but early EVs carry significant used ownership risk.

Unpopular and Deeply Discounted Models

Any BMW model that is deeply discounted when new or proves unpopular in a given market will generally resale for less. This includes models like the 2 Series Gran Coupe, X1, and X2 SUVs which are already depreciating new vehicles.

Regional supply and demand varies, but some models like the X1 and X2 struggle to hold value due to slower sales and incentives lowering transaction prices. Discounts make new BMWs more appealing and hurt resale come trade-in time.

How to Maximize BMW Resale Value

Worried about major depreciation on your new or used BMW purchase? Here are some tips to maximize BMW resale value whether you plan to trade it in or sell it yourself down the road:

Keep Mileage Low

Lower mileage always equates to higher resale value on used BMWs. Try not to drive excessive annual miles to prevent your BMW from depreciating faster. This also helps reliability and reduces wear and tear.

Get Recommended Maintenance

Stay diligent on scheduled maintenance at BMW dealers and keep all paperwork. This shows future buyers the car was properly serviced. Missing services is a red flag for subpar condition.

Keep Your BMW in Pristine Condition

Keep your BMW garage kept if possible and meticulously maintained both inside and out. Quickly address any damage to the paint, body, wheels or interior to protect value. Keep it looking showroom new.

Hold for 2-3 Years Before Selling

The biggest depreciation happens early on. Try to hold your BMW for at least 2-3 years and 20,000 or so miles before selling or trading in to maximize resale value. The first year alone brings the steepest drop.

Sell Privately For More Money

You can often get thousands more for your used BMW by selling privately instead of trading in at the dealer. Market demand varies by region, so research pricing and list it where demand is strongest.

Conclusion: BMW Resale Value Can Vary Dramatically by Model

In the luxury automotive market, BMW has earned a well-deserved reputation for performance, prestige and driving enjoyment. However, some BMW models clearly retain significantly higher value than others as they age.

While no luxury vehicle holds its value flawlessly, wise buyers should consider total cost of ownership and estimated depreciation alongside their desires for styling, performance, and practicality. Opting for lower mileage, well-equipped examples of in-demand 3 Series, 5 Series, X3 and X5 models in great condition can help maximize BMW resale value.

However, those hoping to get the most value for money over time would be smart to avoid BMW’s slower selling sedans and coupes like the 6 Series Gran Coupe and 7 Series. Other assets like the i3 and i8 also carry higher depreciation risk. With smart buying choices and proper maintenance, you can select a pre-owned or new BMW that minimizes depreciation costs and retains real value for years to come.