Does BMW Keep Value? (8 Models Depreciation Charts)

BMW is one of the best car brands in the world.

Good brands tend to lose value quickly,. Does the same apply to the BMW?

As a BMW fan, I will compare the most popular BMWs and their depreciation and compare it with other brands so you can decide if it’s worth buying a BMW car.

Does BMW Keep Value?

Because BMW belongs to luxury car brands, it loses its value relatively quickly. The most popular BMW models lose on average 21% of their value in the first year, 38% in the third year, and 54% in the fifth year.

The chart that I’ve created applies to the 8 most popular models that will be mentioned in this article. Keep in mind that these are the average numbers and every model will have different depreciation.

BMW X1
BMW X1

BMW X1 is the smallest BMW SUV. But it doesn’t change the fact that it’s a roomy car for the whole family. Although the prices of X1 aren’t too high, this model isn’t even the most popular SUV in BMW offer. Because of that, BMW X1 depreciation maybe isn’t high, but it isn’t low either.

BWM X1 depreciates on average 36% in the first 3 years and 50% in the first 5 years (on average 6,92% per year).

Selling price: $40.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
180%$8.000$32.000
271%$11.600$28.400
364%$14.400$25.600
462%$15.200$24.800
550%$20.000$20.000
635%$26.000$14.000
729%$28.400$11.600
825%$30.000$10.000
924%$30.400$9.600
1022%$31.200$8.800
1120%$32.000$8.000
1217%$33.200$6.800

Also read: BMW vs Audi: (Head-to-Head Depreciation)

BMW X3
BMW X3

If you’re looking for something bigger, consider BMW X3. It’s a perfect mix between a crossover and a big SUV. When it comes to depreciation, X3 loses its value pretty quickly, especially in the third and fourth years.

BWM X3 depreciates on average 27% in the first 3 years and 52% in the first 5 years (on average 7% per year).

Selling price: $50.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
182%$9.000$41.000
276%$12.000$38.000
373%$13.500$36.500
463%$18.500$31.500
548%$26.000$24.000
640%$30.000$20.000
732%$34.000$16.000
825%$37.500$12.500
923%$38.500$11.500
1022%$39.000$11.000
1120%$40.000$10.000
1218%$41.000$9.000
BMW X5
BMW X5

BMW X5 is a big SUV. Before you buy it, you should think twice, because it’s pretty expensive and it loses its value the fastest among the most popular BMW models. But some people think it’s the most comfortable SUV on the market right now with great equipment, so it will be a good choice for wealthier than average people.

BWM X5 depreciates on average 37% in the first 3 years and 56% in the first 5 years (on average 7,25% per year).

Selling price: $80.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
177%$16.860$63.140
274%$21.320$60.680
363%$30.340$51.660
457%$35.260$46.740
544%$45.920$36.080
638%$50.840$31.160
734%$54.120$27.880
824%$62.320$19.680
920%$65.600$16.400
1017%$68.060$13.940
1115%$69.700$12.300
1213%$71.340$10.660

Also read: BMW vs Mercedes: (Depreciation Comparison)

BMW 2 Series
BMW 2 Series

BMW 2 series is underrated. Lots of people skip it when buying a BMW, but is it right? It’s a great-looking car with powerful engines, great comfort, and superior quality. It’s not so expensive, considering BMW’s price strategy, and after 5 years, its depreciation makes it a really attractive car to purchase.

BWM 2 Series depreciates on average 28% in the first 3 years and 48% in the first 5 years (on average 6,08% per year).

Selling price: $50.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
177%$11.500$38.500
275%$12.500$37.500
372%$14.000$36.000
467%$16.500$33.500
552%$24.000$26.000
647%$26.500$23.500
739%$30.500$19.500
837%$31.500$18.500
933%$33.500$16.500
1032%$34.000$16.000
1130%$35.000$15.000
1227%$36.500$13.500

Also read: 3 Best BMW for Daily Driving (with Low MPG)

BMW i3
BMW i3

If you’re eco-friendly, the only car to consider on this list is the BMW i3. It’s a smart choice if you’re serious about your money, but… You have to buy it at the right moment. Ideally after 4 years. In the first 4 years, the BMW i3 loses 62% of its value. You buy a car that is still relatively new and its depreciation since now will be only about 2,4% per year! That’s almost nothing. In addition, you don’t have to pay for fuel, so the BMW i3 is a fantastic choice from an economical standpoint. Of course, if you’re ok with driving such a small car…

Trending Video: How to Easily Bring Back to Life any Old Car Battery and Save Tons of Money (click to watch)

BWM i3 depreciates on average 58% in the first 3 years and 67% in the first 5 years (on average 6,92% per year).

Selling price: $53.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
174%$13.870$39.220
259%$21.730$31.270
342%$30.740$22.260
438%$32.860$20.140
533%$35.510$17.490
629%$37.630$15.370
726%$39.130$13.870
824%$40.280$12.720
922%$41.340$11.660
1021%$41.870$11.130
1119%$42.930$10.070
1217%$43.990$9.010
BMW 3 Series
BMW 3 Series

BMW 3 Series is one of the most successful BMW models. It’s been manufactured since 1975! To this day, it’s on the top and it’s sold in the US alone more than 40.000 times each year. It’s a car that has everything- a great look, powerful engines, comfort, good equipment, and a character. However, don’t buy it as brand-new. You should look for 4-years or older models.

BWM 3 Series depreciates on average 38% in the first 3 years and 53% in the first 5 years (on average 6,75% per year).

Selling price: $42.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
182%$7.560$34.440
272%$11.760$30.240
362%$15.960$26.040
459%$17.220$24.780
547%$22.260$19.760
639%$25.620$16.380
735%$27.300$14.700
833%$28.140$13.860
930%$29.400$12.600
1024%$31.920$10.080
1122%$32.760$9.240
1219%$34.020$7.980

Also read: Mercedes vs. BMW- Which is Cheaper to Maintain?

BMW 4 Series
BMW 4 Series

Hands down, BMW 4 is one of the most beautiful BMWs available. It’s not a car for everyone, because it’s a coupe and it’s way less popular than the BMW 3 Series, but if you don’t have a big family, it’s worth considering this car. What’s great is that BMW 4 Series is the second slowest depreciating model among the 8 most popular BMWs.

BWM 4 Series depreciates on average 39% in the first 3 years and 53% in the first 5 years (on average 6,25% per year).

Selling price: $54.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
176%$12.960$41.040
267%$17.820$36.180
361%$21.060$32.940
454%$24.840$29.160
547%$28.620$25.380
640%$32.400$21.600
737%$34.020$19.980
834%$35.640$18.360
932%$36.720$17.280
1030%$37.800$16.200
1128%$38.880$15.120
1225%$40.500$13.500

Also read: 3 Reasons Why Luxury Cars Depreciate so Quickly

BMW 5 Series
BMW 5 Series

A car that is driven by company owners and high-level managers- at least that’s my point of view. If you are into luxurious sedans, BMW 5 series is the best what you can have However, its depreciation is higher than the Mercedes E-Class or Audi A5. But money is not everything…

BWM 4 Series depreciates on average 38% in the first 3 years and 56% in the first 5 years (on average 7% per year).

Selling price: $60.000

Vehicle AgeResidual ValueDepreciationVehicle Worth
181%$11.400$48.600
268%$19.200$40.800
362%$22.800$37.200
456%$26.400$33.600
544%$33.600$26.400
637%$37.800$22.200
733%$40.200$19.800
828%$43.200$16.800
923%$46.200$13.800
1021%$47.400$12.600
1119%$48.600$11.400
1216%$50.400$9.600

Why Does BMW Depreciate the Most in the First Years?

BMW like any other car brand loses its value fast in the first years. There are 2 reasons behind it.

First, when you buy a brand-new BMW, and you start driving it, it changes from new to used. The word “used” has huge power and it lowers the price of your car by 21%! That hurts…

And another reason why BMW depreciates so fast is that BMW cars are often leased. The leaseholders often take a BMW for 4 years. After 4 years, they usually sell their cars. Because there are lots of off-leased cars on the market, they need to lower their prices.

Would you like to see how fast Mercedes-Benz loses value? Click here to find out!

After How Many Yeard Should You Buy a BMW?

We already know that buying a brand-new BMW doesn’t make sense. Thus, it might be a decent idea to buy a 1-year old BMW and keep it for 3 years. That way, you will buy a BMW that has already lost 21% of its value, but in the next 3 years, it will lose only another 22% which is not that many.

But if you want to buy a BMW at the best moment, you should look for 5-years old BMW. After 5 years, an average BMW will lose on average only about 3,4% per year.

Let’s take BMW 3 Series as an example.

a) You Buy BMW 3 when new.

Buying price: $42.000

Selling price after 5 years: $19.760

Money lost: $22.260

b) You buy BMW 3 after 5 years.

Buying price: $19.760

Selling price after 5 years: $12.600

Money lost: $7.160

$15.100- this is how much you can save in 5 years when you buy a BMW at the right moment.

How to Slow Down Your BMW Depreciation?

However, if something is average, it means you can always improve it. So here are the tips on how to slow down your BMW depreciation.

  1. Choose the right BMW. If you want to buy a BMW, but you’re not sure which models you should choose, pick the one that doesn’t depreciate too fast. If you don’t have a huge budget, and you’re eco-friendly, a good choice will be BMW i3 with depreciation rate of 6,92% per year. However, not everyone likes small cars. A good choice will be also BMW w and 3 Series.
  2. Don’t be crazy with colors. If you want to sell your BMW at a decent price, remember to buy it in a popular color. You should consider black, white or silver, because they are in high demand and you will have more potential customers for them. Avoid some fancy colors like yellow, green or pink…
  3. Take good care of your car. Treating your BMW like your child is wroth it. Yeah, it’s true, you have to spend some money to take care of it, but it’s a good investment. Make sure you clean your BMW regulary, you do regular servicing, fix it when it’s broken and keep all the documents. If a car is in a good condition and the history of its maintenance is clear, you will find more costumers to sell your child.
  4. The lower mileage the better. It’s obvious that cars with lower mileage can be sold more expensively. If you want to slow down your BMW depreciation, you should keep low mileage. But don’t be too crazy about it. You buy a BMW to enjoy it.

These are the most obvious things. You should also avoid accidents, scratches, modifications.

Read it: Mazda Depreciation: 7 Popular Models Compared

How Well Do BMW Hold Their Value Compared to Other Luxury Car Brands?

Luxury cars tend to lose value quickly. And you should be completely fine with that when you buy an expensive car.

In comparison to other luxurious car brands, BMW loses value quickly. Only Volvo and Maserati lose value quicker. Just take a look at this chart.

All 8 car brands on this list are luxury car brands. And BMW is one of the fastest depreciating ones.

If you want to reveal which Audi models depreciate fastest, click this link.

What BMW to Choose and When to Buy it?

Now I will tell you which BMW you should buy if you don’t want to lose too much money and when to buy it.

BMW models that you should consider are: BMW 2 series, BMW i3, BMW X1, BMW 4 Series.

BMW 2 Series:

Buy: 1 year old,

Sell: After 3 years

Value lost: 77%-67%= 10%

BMW i3:

Buy: 4 years old

Sell: After 4 years

Value lost: 38%-24%= 14%

BMW X1:

Buy: 2 years old

Sell: After 2 years

Value lost: 71%-62%=9%

BMW 4 Series:

Buy: 1 year old

Sell: After 3 years

Value lost: 77%-67%=10%