Why does a Bmw lose half it's value after a 3 year lease?
I see alot of certified pre owned bmw's selling for less than $25k with only 30k or so miles. Alot of them are lease returns. Why do they lose value so quickly?
Alot of these bmw's cost over $40k new.
- 5 months ago
All cars depreciate as soon as its driven off the lot. You wouldn't want to buy a shirt that was worn by someone else for 5% cheaper would you? You can simply spend a little extra and buy a brand new one. Same goes with cars. They drop in value to half its original price so they can resale. Nobody will spend almost the same price of a brand new one to buy a used one.
- MercuryLv 77 months ago
They start losing value as soon as they go on the road
- Old Man DirtLv 78 months ago
There are sites that allow a person to see projected maintenance and repair costs for any car on the US market. The yearly cost of ownership of a BMW escalate very quickly at the four to five year mark. So much so that they exceed the purchase price of a less noble car. Part of this is the supply system for spare parts and the other portion is that some cars (like BMW's) tend to have mechanics who think the owner has deep pockets. A lot of mechanics will not work on them because they think the owners are too finicky and those that will have enough work to do that either you pay the price they want for repairs or do without.
- thebax2006Lv 78 months ago
Because BMW's are a nightmare to work on and are very expensive to maintain.Source(s): Mitsubishi Master Tech
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- curtisports2Lv 78 months ago
ALL cars except for extremely limited production high-value sports cars lose value. Some lose value faster than others.
- SSP Bowl DudeLv 78 months ago
Pretty much all cars do that.
- CactiJoeLv 68 months ago
They are pure junk and cost an arm and a leg to maintain and repair. Anything made in Europe is a VW, there are just more expensive models of VW's with different names.
- JetDocLv 78 months ago
Depreciation is a fact of life, Skippy. Pretty much ALL "luxury" brand cars like Mercedes, Cadillac, BMW, Lincoln, etc lose a big chunk of their retail value in the first 2-3 years. That's why it's smarter to buy a USED luxury car than a brand new one.
- Beverly SLv 78 months ago
Pretty much any car does..
- Anonymous8 months ago
All cars depreciate in value rapidly.