[USA-RET]

So, just for fun I wanted to see what my like new 2017 M240i is worth on KBB.

The high price for a trade $32270 and high price for private sale $35380.

I was amazed that my $52K lost $20K from year 2017 to 2019 trade in

My car would be rated excellent as it is garage kept, has approx 7500 miles and is flawless. Seriously, not a nick or road chip anywhere on the car. Interior still smells like new and shows no wear at all.

I traded a 2015 C7 Corvette for it in 2017 so the spread between model years on both cars is the same. Vette was in the same condition as my BMW. Flawless and very low miles. I paid $56K+ for the Vette and got $48K on a trade. So, owning that car for approx the same amount of time I owned the BMW, I lost approx $8500 on the vette (less that I could have leased the car for) compared to almost $20K on my M240i.

Do BMW's really have such a $#!tty residual value?

[CP911]

Yeah, I mean when you think about it, MY2017 came out in 2016, and MY2020 cars are already driving on the road. As special as our cars are, BMW is always coming out with newer, better, faster. Depreciation is what it is. Only if you hold on to the car for a long period of time (10+ years), and typically if the car is enthusiast spec'ed (6-speed, moonroof delete, etc.), you just might see the market might flip the depreciation curve in your favor. Otherwise, I'd just enjoy the car for what it is and not worry about it from a business standpoint.

[Unicorn123]

CP911,

Good point. There may be another factor involved here and that is demand. The 2-Series in general is a relatively low volume car and has a very limited group of clientele, purchasing a very specific kind of coupe / roadster.

The Corvette, on the other hand, is a fantasy car for a great number of the men and women (my Mom was until she bought her Z4, which altered her world view on the Corvette). Although the Corvette is manufactured in numbers 3-4X the 2-Series, the demand far outstrips the production, especially in the second hand market, and the Corvette is at a reasonable price point for the performance it delivers.

Since the demand for the Corvette is much, much greater than the 2-Series, I would expect the depreciation to be less for the Chevrolet. OP, this is the risk associated with buying a car with limited demand, despite the "smile per mile" factor the 2-Series provides.

My two cents...

[Sportstick]

I think this is one reason why many refer to their Bimmer as "a keeper".

[USA-RET]

I'm up in the air about whether to keep mine long term or trade for something else. With the hit you take, a 3 year lease certainly looks more appealing than a purchase.

Don't get me wrong, I love my car, but with new stuff coming out all the time, a person can get caught up with trading. The C8 looks very nice (and I'm considering that after all the market adjustments fade and discounts start appearing. Also looking at a Tesla Model 3 performance (when they start installing the new battery packs (after acquiring Maxwell). The new Cayman is also appealing as a smaller car (which I prefer) and likely to retain it's value long term.

Yeah, I get that cars are not an investment, however, I thought a BMW would have a better return than what it does. I think a 5 year residual was listed at 48%. At the rate mine is dropping I may have to pay someone to take it off my hands.

[dradernh]

BMWs and depreciation go together like two peas in a pod. At least they do when the cars are purchased new.

I'm in the same situation, more or less: garage-kept 2017 M240i with 8,325 miles. I figure it's worth $33-35K. Maybe.

Luckily, I found it in June, 2018 for $39K, so the hit wouldn't be especially awful if I sold or traded it.

My plan was and is to keep it; unless it turns out to have been a poor choice, it will be my last car. This is my sixth BMW, so I knew what I was getting into when I bought it - both depreciation and maintenance-wise.

[bimmerclad]

Off topic. But how does a c7 feel compared to the 240i and 235i if you've ever driven one.

[MarkDemma]

"From what I hear" if you are wanting to buy a BMW your best bet is to grab one after a 3 year lease is over with.

Conversely, I think I've heard it said that if you are wanting to sell a BMW, at the 3 year mark because of the glut of before mentioned leases flooding the market you'll see the price drop considerably.

I bought mine new because I wanted manual and I was having a hard time finding anything but in hindsight considering it took 6 months to get the thing here I should have been more patient or fixed and kept my E46 longer.

[thebmw]

The m235/240s held their value fairly well for the first 2 years after they were launched. Now they are a 6 year old model vehicle and abundant in the used car market. But technically, you lost 20K for a 4 year old car...not bad. Don't feel too bad though, decent 2014 m235s are less than 20k all day long now. In a few years, I plan to pick up a beater 2017 2 series (in great shape though) less than 15K. Some 2014-2015 228s are already there now.

[235Dude]

I've owned a number of vettes and BMWs and the vettes have all been cheaper to own!

[YamaLink]

Bought my 2020 m240ix last week for a very, very good deal, but I knew it would just help with the kick to the teeth when it comes time for book value in 4 years. I have no plans to keep this for more than 4 or 5 years, and leasing doesn't make sense for me. My new price was same as certified pre-owned with extended warranty.
I got rid of a 2015 fully loaded German SUV and it was about a 55% depreciation. I knew this going, too. A Toyota family we are so resale is top of mind conversation at many get-togethers when I've pulled up in a German "fun car" since 2013. On our left, we have a 6 year old Toyota-whatever-whatever that's worth 90% of new, and on our right we have, well, my car, ha.

[dradernh]

Originally Posted by YamaLink

A Toyota family we are so resale is top of mind conversation at many get-togethers when I've pulled up in a German "fun car" since 2013. On our left, we have a 6 year old Toyota-whatever-whatever that's worth 90% of new, and on our right we have, well, my car, ha.

Same here. This past May I sold my 2007 Tundra with 110K on the clock for close to 50% of what I paid for it new. Granted, well-maintained trucks hold their value extremely well, but it was the Toyota badge that made the sale at that price.

The wife has a five-year old 2015 Mazda 3 2.5-liter manual with 68K on it. She paid $23.9K, it's still worth around $15K, and it costs next to nothing to run. Other than 5K oil changes and inspections, I think the only maintenance has been rear pads. Plus, compared to German vehicles, it's crazy how little shops charge to work on Japanese iron!

[EstorilM240]

Yes, the depreciation is real. Really changes the name of the game. My ~$38K 2017 M240i (got used in 2017) is now valued at $28K according to the lease buyout 2 years later and $25K on KBB tradein. The lease residuals on the 2 series are typically about 52% for 3 years/36K miles, so I kind of saw it coming.

As another thread mentioned, some cars like the STi kept their value very well since the 2004 STi and 2019 STi barely have any performance or HP differences and still have the same motor, whereas a 3 series from 2004 and 2019 are light years apart.

https://usedfirst.com/cars/ has some interesting curves on typical depreciation by brand.

Another two factors for depreciation is the huge amount of cheap financing from 2012-2016 (0% APR all days, lease specials/incenetives) and the relative demand over time too. We know that since 2014 when the 2 series came out, compact cars and sport coupes have fallen out of favor for SUVs and trucks. So the supply coming onto the market from lease turn-ins and used cars does not totally reflect buyer sentiment today. BMWs like the X3 probably retained their value mildly better.

[dradernh]

Originally Posted by EstorilM240

BMWs like the X3 probably retained their value mildly better.

Possibly, although this page indicates that might not be the case: https://www.iseecars.com/cars-low-hi...ion-2018-study.

BMWs are certainly well-represented on the lists of top ten highest-depreciating cars and SUVs on that page.

[USA-RET]

Originally Posted by thebmw

The m235/240s held their value fairly well for the first 2 years after they were launched. Now they are a 6 year old model vehicle and abundant in the used car market. But technically, you lost 20K for a 4 year old car...not bad. Don't feel too bad though, decent 2014 m235s are less than 20k all day long now. In a few years, I plan to pick up a beater 2017 2 series (in great shape though) less than 15K. Some 2014-2015 228s are already there now.

Problem is my car isn't even 3 years old. a 2017 @ 2018-=1 year old 2019=2 years old 2020=3 years old. how do we get 4 year old car?

[USA-RET]

Originally Posted by bimmerclad

Off topic. But how does a c7 feel compared to the 240i and 235i if you've ever driven one.

My 2015 C7 as fast for sure. Had a god-awful automatic transmission which is why I traded it. If the tranny was like the ZF, I'd still be driving it.

On to performance. The M240i as stock was very quick in comparison to the C7., but not as quick in a straight line, yet still respectable. I added a Dinan Stage 1 and the CF intake and now my M240i feels every bit as fast as my stock 2015 C7. Yeah in a1/4 race I still may get inched out by a C7, but still feel both cars are comparable based on having owned and driven both.

A C7 driver will think they are going to walk away from an M240i but they will be surprised to see it keeping pace with them or maybe a bit more.

[paposalsa]

Originally Posted by thebmw

The m235/240s held their value fairly well for the first 2 years after they were launched. Now they are a 6 year old model vehicle and abundant in the used car market. But technically, you lost 20K for a 4 year old car...not bad. Don't feel too bad though, decent 2014 m235s are less than 20k all day long now. In a few years, I plan to pick up a beater 2017 2 series (in great shape though) less than 15K. Some 2014-2015 228s are already there now.

15K for a 2015 228? Don't think so unless they have like 75,000 miles with an accident

[thebmw]

Originally Posted by USA-RET

Problem is my car isn't even 3 years old. a 2017 @ 2018-=1 year old 2019=2 years old 2020=3 years old. how do we get 4 year old car?

Correct, three years old. The previous poster had a 2016 so it threw me off. So just under 7k per year in depreciation. You could have gotten a more expensive car for that kind of depreciation. But, did you enjoy the car? That's really what it's about. At the day, did those few thousand dollars make the difference between driving something you love versus being tortured in a Camry, Prius, pickup, etc?

To me, life is short and a few thousand bucks really doesn't matter in the grand scheme. Most people spend more time driving than most other recreational activities so enjoy it!

[thebmw]

Originally Posted by paposalsa

15K for a 2015 228? Don't think so unless they have like 75,000 miles with an accident

Higher mileage yes, accidents not necessarily. Have access to a lot of sales data including Manheim. The margins are actually pretty small relative to retail and Manheim for the older 2s right now.

[thebmw]

Just ran the numbers: 2014 and 2015 228s in all coupe forms are wholesaling between 12-15k all day long. These are all in decent cars (not salvage, major accidents, or bad condition).

OP, it gets worse for you. Your car wholesales for 30,400 right now. I don't think a dealer would give you much more than that. KBB isn't always correct!

[MassNerd]

What's also not helping you is that recent new M240i's are regularly selling for 15% off MSRP, so based on you paying $52K, I'm guessing you didn't get that kind of discount...

[p912guy]

I knew I'd take a big hit on depreciation going in, but I still love my car. I have my 2017 Canyon Denali truck (35K miles) that we bought new at a tad under $40K and it is worth approximately $32K in a private party sale, and then there's my 2016 M235i convertible (41K miles) also purchased new that we paid a tad over $48K which is now worth about $26K in a private party sale. As someone else mentioned, the smartest way to buy a BMW, Audi or MB is lower mileage CPO lease return, 2-3 years old. At least that's the plan for when it comes time to replace my BMW and my wife's Audi, however, we'll probably keep both cars as least 6 or 7 years so the huge initial depreciation is somewhat tempered by then. When it comes time to replace my truck, I'm thinking Jeep Gladiator, which should hold it's value really well like all Jeeps.