Audi vs. BMW - Depreciation
#1
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I contact a buddy of mine who works for a used car dealership the specializes in selling luxury/import cars. I wanted to get a feel for the value my A6 (2000 2.8Q - 56k mi - Excellent Cond.) and my wife's BMW 318i Convertable (1997 - 91k mi - Clean but needs new top). I almost dropped the phone when he came back with these numbers for trade value:
My Audi - $13k apx.
Her BMW - $11-12 apx. depending on deduction for top.
I am shocked how well the BMW value has held up and not surprised how the Audi has depreciated. I guess it is the old rule of supply and demand.
My Audi - $13k apx.
Her BMW - $11-12 apx. depending on deduction for top.
I am shocked how well the BMW value has held up and not surprised how the Audi has depreciated. I guess it is the old rule of supply and demand.
#4
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Does funny things to resale ;-)
As AUJ points out, as the Bangle designs move across the entire line, I think we'll see a short term upswing in used BMW resale (relative to what it should normally drop), and then as the cars go 3 years into the next body, fall off sharply as the prestige drops.
When I see somebody driving the new 7 or 5 series, I tend to think of them as either being very bold experimentalists who admire the technology under the car, or total fashion victims who simply must have the latest blue propeller design. If anything, over time this will weed out the fashionistas and only the hard core people who care about performance will be left (assuming BMW can remain focused on that).
As AUJ points out, as the Bangle designs move across the entire line, I think we'll see a short term upswing in used BMW resale (relative to what it should normally drop), and then as the cars go 3 years into the next body, fall off sharply as the prestige drops.
When I see somebody driving the new 7 or 5 series, I tend to think of them as either being very bold experimentalists who admire the technology under the car, or total fashion victims who simply must have the latest blue propeller design. If anything, over time this will weed out the fashionistas and only the hard core people who care about performance will be left (assuming BMW can remain focused on that).
#5
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As for the BMW being bad vs the AUDI being horrible it has only to do with demand for a used BMW 3 series convertible in your area.
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#8
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and let's not forget, like it or not the roundel still has some cachet. Even though a 318i is not an especially good ride (I had several as loaners back in my BMW ownership days), it's a soft top and it says BMW.
#10
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let someone else (either a bank or captive finance company) eat the depreciation, don't give it a thought. Lease for length of warranty and toss them the keys.
The problem with buying used, even new-ish lightly used, is you have to add the cost of a warranty, probably tires and a major tuneup, and interest rates on used car purchases are higher. Unless you are the buy-and-hold-until-it-disintegrates type, but what fun is that?
The problem with buying used, even new-ish lightly used, is you have to add the cost of a warranty, probably tires and a major tuneup, and interest rates on used car purchases are higher. Unless you are the buy-and-hold-until-it-disintegrates type, but what fun is that?