In general, affordably priced models of most vehicles tend to hold their value better than high-priced sports are luxury models. This is primarily because the lower introductory cost necessarily decreases the net amount which it will decrease while it depreciates. At the same time, if you look at depreciation as a percentage of total cost luxury models often prove to be a better alternative.
A Closer Look at Vehicle Depreciation
After five years, the average vehicle will only retain about 34% of its original value. In order to truly determine which vehicles hold their value well it is important to compare them to the average depreciation rate. There are a variety of characteristics which will affect how well a vehicle holds its value. Some of the most commonly discussed variables include the brands management of supply and demand, projected future market conditions, and the average vehicle resale value. In general, the vehicles which will maintain their value the best are those which are rarely heavily discounted by manufacturers.
BMW Vehicles Hold Their Value Comparatively Well
In general, BMW vehicles hold their value compared we well. Over a period of five years, they will typically retain more than 37% of their original value. This is important to remember because if you purchase a BMW with a higher resell value, you will be able to regain some of your initial costs when you traded in for another vehicle. Based upon resell value, the BMW X5 is one of the best options for a luxury utility vehicle. The BMW XDrive 35d also does well in the hybrid/alternative energy segment.
The BMW 3 Series Holds Its Value the Best
The BMW 3 series consistently holds its value better than other BMW vehicles. While the entire BMW 3 Series line maintains a solid resale value, the M3 is perennially the most popular high-performance model in this line. Not only is it an excellent new vehicle, but it has what many consider to be a fanatical following which ensures it will command a premium price even on the used vehicle market. In 2014, the BMW 3 Series prove to be one of the best lineups in terms of holding their value. They rank highly in several segments including the luxury compact sedan and luxury wagon. The BMW Z4 receives high marks in the luxury compact convertible segment and the BMW X6 consistently rates highly in the luxury compact and midsize SUV segment.
Overall BMW Cars Hold Their Value Well
In the grand scheme of used-car market valuations it is safe to say the BMW car consistently holds its value well. At the same time, it is important to keep this in perspective because it is still estimated to only retain about 40% of its value after five years. This is a hidden cost of new car ownership that many people don’t consider. While a variety of BMW cars will hold their value well, the safest bet is the BMW 3 series – particularly the M3.