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Discussion Starter #1
I am staggered at the rate the E60 is losing money at the moment.

I am carefully keeping an eye on the prices towards the summer so as to purchase an E60 M5 myself and am amazed at the rate they are dropping in value in the UK.

63K new 3 years ago and now in the autotrader at 31K with 50k on the clock.

Why do these flagship cars lose so much money so quick.

Please discuss.


Regards
 

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Why are you complaining...?

If you bought one new then you can afford to lose it and if you cant you can pick one up kind of cheap...

Go back to sleep its win win...

cherrsagai
 

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Depreciation?
Go look on Ebay at the Merc CL65's from 05 and 06. They regularly go for under $60 at Manheim.
Most high end cars at $100k plus depreciate on an accerlerated curve. Why? Not a huge resale mkt.
 

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What a stupid thread. Wow, cars depreciate. How illuminating. Couldn't care less. See ya.
 

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...

personally i couldn't give two SH**s if the car depreciated, hell "I WISH THE E39" would "DEPRICIATE MORE" this way i could afford more than 1...when you buy a car you shouldnt concentrate on how much you'll loose when you go to sell it back...cars are a luxury to indulge in and other than precious metals and diamonds i don't know of any indulgence that pays for itself{as far as collector cars go, i saw an f40 on pistonheads that had a full rebuilt done for some 230+k and wasn't even selling for 250k}; so if you don't plan on keeping the car then you might wanna just lease it...maybe not million dollar bugattis or ferraris, but a car has more of a personal/sentimental value than a dollar value...
 

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W0W, lets not get too pissy everyone.....I think NOBODY buys an M5 for an investment....like it has been said the market for these cars is LOUSY...One buys an M5 because they want a fast roomy boat....5 people and fun to drive....I paid a little OVER 100 thousand dollars U.S. in 2006, now it's prolly worth 60k , 40,000.00 dollars for 2 years of service and 14k miles....a big loss, oh well, I'm keeping it till the warranty runs out at 100k or 7 years, then buy somthing else...
.
Don't buy one for an investment, buy one because you MUST have one...stop your bitchen, it's fun
 

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I am staggered at the rate the E60 is losing money at the moment.

I am carefully keeping an eye on the prices towards the summer so as to purchase an E60 M5 myself and am amazed at the rate they are dropping in value in the UK.

63K new 3 years ago and now in the autotrader at 31K with 50k on the clock.

Why do these flagship cars lose so much money so quick.

The M5 is about £63K + options and most M5's will have at least some options you can add upto about £15K in options to the list price.

£31K ($60K ish) for a 50K mile car is not a bargain, it is high mileage for 3 years. But look at it another way, the previous owner obviously enjoyed.

One thing to point out is that most cars usually loose 60 - 70% of their value over a 3 year period in the UK with average mileage, the example you gave is around 50% and it is high mileage, so percentage wise it is doing much better than most cars.

I'd guess that car has quite a few options?

I would guess that with average milage the M5 should be around 50% of its original purchase price after 3 years. So expect to pay between:
£30K - £40K (depending on options) for a 3 year old car with average mileage (36K miles)


As someone that purchased my M5 new my figures are probably optimistic :haha:
 

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You won't get much sympathy from those who live in California, Florida, Michigan and Las Vegas.

Our houses have depreciated 15-20% in the past couple years. :eek:
 

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You could always import a 2005 e60 M5 from Japan in RHD. They will be cheaper that what is on autotrader and can be shipped to UK easily by container. I paid 8m Yen for one and shipped to NZ with only 20km on the clock and mint. Would be worth doing the numbers.
 

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Discussion Starter #13 (Edited)
After reading this thread, you should understand where he's coming from.....
http://www.m5board.com/vbulletin/showthread.php?t=89020
I understand and appreciate I should have searched but no need for a snotty reply with "what a stupid thread, I couldnt care less" thats all.:confused:

I will search next time guys. Sorry for the bad post.:haha:

Now let me get back up off the floor so I can bandage myself up.:p
 

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I think the question within your question is:
"Does the M5 depreciate faster than other high-end performance automobiles?"

The answer is No, it's about average. Porche 911s do better, MB AMGs somewhat worse.

Generally speaking, BMWs are typically among the best of brands in holding their value. Lately, the 6 series ranks highest among BMWs in terms of holding its value.

If you are looking for a car that holds its value better, buy a Corvette, Mini Cooper, or Toyota Prius.

Otherwise, don't fret too much over the depreciation of the M5 ... there is nothing abnormal going on.
 

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I think the question within your question is:
"Does the M5 depreciate faster than other high-end performance automobiles?"

The answer is No, it's about average. Porche 911s do better, MB AMGs somewhat worse.

Generally speaking, BMWs are typically among the best of brands in holding their value. Lately, the 6 series ranks highest among BMWs in terms of holding its value.

If you are looking for a car that holds its value better, buy a Corvette, Mini Cooper, or Toyota Prius.

Otherwise, don't fret too much over the depreciation of the M5 ... there is nothing abnormal going on.
+1 If depreciation were a real concern I'd never buy a new car again.
 

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One aspect that hasn't been discussed in this thread is the role of BMW GB, who's actions have often accelerated depreciation in the first 2 or 3 years of a model's life.

a. BMW compete aggressively within the BMW group and often overcommit on their binding sales forecasts. Excess stock is then 'forced' on to dealers who eventually discount often quite heavily in order to reduce their inventory valuation. On fast turn over vehicles like Minis, 1's and 3's this isn't a problem but on ///M models in particular this can have a devastating effect on short term residuals. Recent examples include the E46 ///M3 CSL, E85 Z4 ///M Roadster and E86 Z4 //// Coupe. ///M Coupe's in the first half of 2007 could be purchased from main dealers, pre-registered but with zero miles for 30% less than list. You can still expect discounts in the range of 20-30% now!

E92 ///M's can be had with good discounts. In this case it's too early to be conclusive as the model is still very young, and the forthcoming DSG option will have reduced some potential sales leading dealers to knock out cars instead of hanging on to them.

b. BMW GB doesn't scrutinize individual deals. In some countries the BMW importer will authorize ///M5 and ///M6 deals to ensure discounts are neither too high or frequent. In Switzerland - a country where used vehicles generally have very low values - E60 ///M5's are loosing about 30-35% over 3 years.

c. Up until recently BMW GB employees and some family members were able lease vehicles at preferential rates and sell them after only 6 months. The rules have been tightened up, with restrictions on the types of vehicles and quantities.
 

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+1 If depreciation were a real concern I'd never buy a new car again.
That's a fair point and like many people here I've never let it affect when or what new car I was buying.

What I find a little irksome is when the importer stimulates depreciation in what is primarily a customer order driven business.
 
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