When you’re buying a new car, no matter the style or brand, you are going to think about depreciation. Even if you’re leasing the vehicle, this is affected by a ‘resale factor’ so it’s vital to have an idea of how good or bad things will look in a few years’ time. For premium brands, like BMW, this is even more important, as depreciation rates can get ugly.
With this in mind, how bad are the resale values for new BMW models, and are there any BMWs out there with ‘good’ depreciation figures? I want to try and answer that question for you in this article, and in the next few sections, we’ll look through the current BMW range to find some great, and not so great, resale values.
So is there a BMW out there that holds its value well? Or will they all leave you with an empty wallet after a couple of years? Let’s find out!
What is Resale Value?
When we talk about resale values in the automotive world, we are looking at how much money has been lost since the car was new. Also called depreciation, on average, a car will lose 30-40% of its value in the first three years.
For example, if you bought a brand new car for $50,000, in three years’ time that car should be worth around $32,000, as a rough guide. After the first three years, the depreciation slows down, and other factors play a role, such as the condition of the car and mileage.
That 30-40% rate is an average, though, and in most cases, the more expensive the vehicle, the more it will depreciate in those first three years. This is down to a variety of factors; maintenance costs are higher on luxury models, and people are willing to pay for the next best thing, so they don’t want a used car.
BMW models are usually found in the ‘high depreciation’ category of the auto market. They are expensive to buy, brand new, and expensive to maintain, and with plenty of technology, the new models are often a major upgrade.
Remember – these resale values below are the costs to buy a 2020 BMW. With site fees and markups, if you are looking to sell your BMW, the value may be lower than the numbers below.
BMW Models With The Best Resale Values
Let’s start by looking at a few current BMW models that have held their value the best. Some BMW models have only gone on sale recently, so we don’t have accurate depreciation guides for these. Even so, I’ll give you my thoughts on those models.
To compare models, I’m using a 2020 preowned model with around 30,000 miles against the cost of a new BMW. I’ve collected data from BMW Approved Used, Autotrader, Edmunds, and Carmax to find a range of used model costs.
330i
- 2023 New Model Cost: $43,800 – $58,100
- 2020 Used Model Cost: $30,000 – $41,000
- Resale Value: 69% (average after three years)
First up is one of the best-selling BMW models, the 330i. As the entry-level 3 Series, the 330i is a great introduction to the premium sedan market for many owners. With leather seats, 19-inch wheels, and one of the best infotainment systems on the market, the 330i is a step above most sedans.
It’s also competitively priced compared to most BMWs, and you can pick up a new 330i for just over $40,000 with a few options thrown in. While this is a great deal for a new BMW, it’s even better news when you consider the resale value.
With an average depreciation of 31% after 3 years, the 330i holds its value really well. It’s better than other models in the 3 Series range, and this means you can find a 330i for just over $30k. It will cost you more for a preowned model that includes most extras, but they can still be found for just under $40,000.
The new models get the latest iDrive system and a single extended display, which offers the latest and greatest tech from BMW. 2020 models still include an excellent iDrive system and a more driver-focused layout with dual screens.
With 254 bhp from a 2-liter engine, 28 mpg combined, and plenty of practicality, the 330i is a solid choice if you’re looking to lease a premium sedan and want to keep costs down.
Our preowned top tips
- Look for models with a Heads-Up-Display installed – it’s one of the best HUD systems from any manufacturer.
- Adaptive M Suspension is a great addition too. If you’re comparing preowned models, this upgrade is worth around $1,000.
- If you like your music, the Harman Kardon Soundsystem upgrade is a must-have
228i / 230i
- 2023 New Model Cost: $38,200 – $47,600
- 2020 Used Model Cost: $26,000 – $33,000
- Resale Value: 70% (average after three years)
Next up, we have the least expensive BMW on sale right now; the 230i. We’ve included the 228i here in our study – they are essentially the same car, with the 230i getting some minor performance upgrades. So how do these models stack up against the 330i?
For new 230i models, you can expect to pay anywhere between $38,000 to almost $48,000. As the entry-level 2-Series, going up to almost $50,000 seems incredible for a car like this, but there are some expensive options you can add.
Even with all those options, 230i models hold their value incredibly well. With an average depreciation of just 30% over 3 years, it has one of the best resale values of any premium coupe. You can find 230i models for well under $30,000, and even high-end ones will only approach $35k.
Like the 330i, the new 230i models include better technology and more features. If that’s important, then you’ll want to stick to new or 1-year-old models. That doesn’t make older cars a bad choice, though, and you’re unlikely to lose too much on a preowned 230i, barring any damage.
With the same 2.0L engine as the 330i and 254 bhp, the 230i is surprisingly quick when needed. Careful drivers will average 30mpg too, so if you don’t need the practicality of a 4-door sedan and you want a BMW, this is a great choice.
Our preowned top tips
- They will be rare, but the standout color for us is Thundernight purple.
- The 19-inch wheels might look impressive, but the ride quality is far better on 18-inch alloys.
- Heated seats and steering wheel functions are optional, so if you’re in a colder climate, make sure your 230i comes with these.
X1 28i
- 2023 New Model Cost: $39,000 – $50,700
- 2020 Used Model Cost: $30,000 – $34,500
- Resale Value: 72% (average after three years)
We have the first BMW SUV up now, the X1. Only available in one trim level, the 28i, the X1 is a surprisingly practical model, and although it misses out on some of the best BMW features, it’s a popular car on the preowned market.
A brand new X1 starts at just under $40,000 and rises to just over $50,000 once you add options. In the world of premium SUVs this isn’t a huge amount, but if your budget doesn’t stretch that far, what are preowned values like?
The X1 sits at an impressive 28% depreciation in our 3-year study. There are few used models on sale than the likes of the 330i and 230i, but even with that ‘rarity’ factor, I didn’t expect the X1 to hold its value this well.
This is my opinion, but if you’re after a great-looking SUV, the new X1 is a major upgrade from the older generation. Particularly with the M Sport pack and the Shadowline upgrade, the X1 stands out in a crowded market sector.
With 241 horsepower from a 2.0L engine, the X1 isn’t designed to impress with its performance. That’s ok, though, and the practicality of this SUV more than makes up for that.
Our preowned top tips
- Models with a panoramic moonroof are a great find. You sacrifice a bit of headroom, but the cabin feels far more spacious.
- This isn’t a large SUV by modern standards, but I’d still recommend the Parking Plus pack, to help with tricky situations
Z4 30i
- 2023 New Model Cost: $52,500 – $64,500
- 2020 Used Model Cost: $41,500 – $49,000
- Resale Value: 78% (average after three years)
Our next BMW is the Z4, and the current generation 30i model. As the only dedicated BMW convertible, the Z4 is unlike anything else in the range, and it occupies a strange place in the market. Both of these factors help the resale value, and at the time of writing this article, the X4 30i has the lowest depreciation of any BMW.
Dedicated two-seat convertibles are hard to find unless you’re in the supercar market. There are some fantastic budget options, notably the Mazda Miata, but most convertibles are just a conversion of their sedan body style. Even Mercedes has scrapped their SLK range, so unless you go for a cheaper Porsche, there isn’t much out there like the Z4.
With over 250 bhp, a 0-60 time of 5.2 seconds, and that starting price of just over $50k, the Z4 30i offers you great value for a car like this. Ok, it still has all the shortcomings of a convertible, but the interior doesn’t cut any corners.
Overall, this is as close as you can get to a true convertible that you can use daily. For that reason, I think resale values remain so high, and with a limited number of Z4 models, there isn’t the supply in the used market that you see for a 3 Series.
Our preowned top tips
- Go for the upgraded Vernasca leather seats – the neck and lumbar support are excellent for a convertible
- I would only go for a Z4 with parking sensors – this isn’t the easiest convertible to maneuver in small spaces.
That makes up our top four BMW models, covering the best resale values right now. But what about those BMW models with the worst resale values?
BMW Models With The Worst Resale Values
Now we come to the current BMW models that depreciate the most in their first three years. It won’t surprise you to see some of the most expensive BMW models on this list, but you might find a few vehicles you wouldn’t expect. Let’s get started and look through the list…
X7 M50i / M60i
- 2023 New Model Cost: $108,700 – $129,000
- 2020 Used Model Cost: $72,000 – $80,000
- Resale Value: 63% (average after three years)
First up is the X7. The flagship BMW SUV (if you don’t count the XM) – the top X7 used to be the M50i model, with a 4.4L V8 engine. Last year BMW replaced this model with the M60i, slightly increasing the power, and adding a number of features.
The X7 M60i starts at $109k, with the option to add another $20k of extras and packs. This 7-seater luxury SUV doesn’t cut any corners, and despite weighing 6,000 lbs, you can get to 60mph in 4.5 seconds. All of that power means you’re unlikely ever to see 20mpg, but X7 drivers won’t care about that.
Inside the X7, you find the reason for its depreciation numbers. The M60i model has every piece of tech available and high-quality materials across the cabin. There’s no compromising here; the X7 is an impressive place to sit, and even more impressive to drive. But with all the advances in technology, the older models are left behind.
If you have a budget close to $100,000 to spend on an SUV, you’re probably going to want the latest and the best on the market. This means that X7 owners are more likely to trade in their model after a year or two, and you end up with plenty of used models going for a lot less than their starting prices.
Our preowned top tips
- Avoid the 23-inch wheels – they don’t look as good in my opinion, and the ride quality suffers.
- Check the condition of the seats; Merino leather is hard to clean and maintain
- Most X7 models have plenty of options, so you’re unlikely to miss out on anything.
M850i Coupe
- 2023 New Model Cost: $106,500 – $130,000
- 2020 Used Model Cost: $66,000 – $75,000
- Resale Value: 60% (average after three years)
After the X7, our next BMW is the M850i. Part of the recently revived 8 Series range, this model sits at the top of the ‘car’ segment for BMW, alongside the 7 series. Available in a Coupe, Convertible, or Gran Coupe style, the 8 Series is one of the most expensive ‘non-M’ BMWs you can buy.
Starting at over $100,000, what makes the M850i so expensive? Let’s start with the engine because this car is powered by a 4.4L V8, putting out 523 bhp. For a standard BMW, that’s ridiculous performance, and the numbers don’t stop there.
Customizing an M850i can reach eye-watering amounts. With $5,000 paint options, $2,000 to upgrade to full Merino Leather inside the cabin, and $3,000 for a carbon fiber roof you can go wild on the extras here, and that’s without even looking at the tech options.
So what is causing the depreciation to be so extreme on this model? It’s a combination of factors really – with a pricetag like this you will always see cars lose value quickly, but there’s another reason. The M850i might pack 532 bhp, but once owners got their hands on this model, BMW brought out something even better (which we’ll see later)
Our preowned top tips
- The standard tires on most models are performance run-flat options. Check the wear, as these tires have a short life.
- The glass controls may look incredible on photos, but in reality those surfaces need plenty of cleaning, so think carefully.
760i / M760i
- 2023 New Model Cost: $121,000 – $157,000
- 2020 Used Model Cost: $78,000 – $94,000
- Resale Value: 61% (average after three years)
The runner-up on our list, and the BMW with the second worst depreciation, is the 760i. The flagship 7 Series model, the 760i has changed slightly in the last few years, so we’ve included its predecessor here too (the M760i). Let’s start by looking at what a 760i includes.
If you’re unfamiliar with the 7 Series, it’s essentially the most luxurious BMW you can buy, with the price tag to match. Starting at over $120,000, the best way to describe a 760i is to consider a ‘budget’ Rolls Royce. This is a car designed for you to be driven in, with every feature the driver and passenger could ever need.
Outside the 760i, it’s a controversial design, but it’s unlikely to blow anyone away with its looks. Inside is where things change, though – especially if you’re willing to spend on the optional extras. With front & rear heated, ventilated, and massaging seats, automatic doors, and even the option for Cashmere lining, this is unlike every other BMW.
That’s before you get to the technology too. There are all the usual BMW driving aids, but the entertainment is something else. You have a Bowers & Wilkins sound system available, but by far the most interesting feature is the theater screen. BMW has added the option for a 31-inch 4K screen to fold down from the roof, so rear passengers can enjoy films, tv, and more. Yes, I typed that correctly – a 31-inch screen in your car.
The 7 Series is at the cutting edge of what a BMW can do when it comes to luxury and technology, and that’s why depreciation values are so high. Owners that can afford a car like this will always want the best, and if that means swapping to a new 760i every year or two, they will. For anyone looking to get an incredible luxury vehicle for less than $100,000, though, you’re in luck here.
Our preowned top tips
- The executive package is a must-have. For a car like this, you need those luxury features.
- Check the seat conditions – like the X7, the Merino leather isn’t the easiest to clean.
- You’re unlikely to find a 7 Series that isn’t packaged with most optional extras, but double-check on the driving assistance pack. It’s worth having for a car this size.
M8 Convertible
- 2023 New Model Cost: $145,000 – $175,000
- 2020 Used Model Cost: $83,000 – $91,000
- Resale Value: 55% (average after three years)
Our final BMW on this list, and the model with the highest depreciation, is the M8 Competition Convertible. We’ve already covered the M850i, but this is the highest-spec 8 Series available and the most expensive BMW convertible.
We’ve already seen an 8 Series with over 500 bhp, so what makes the M8 so special and so much more expensive? For starters, BMW has upped the power to an incredible 617 bhp, with a claimed 0-60 time of 3 seconds. Considering BMW is known for underselling its performance, I’d expect the reality to be even quicker.
Alongside that power, the M8 features all the specific ‘M’ division upgrades to mark this car as different from a standard 8 Series. You can add carbon bucket seats (for $4,500), Carbon Ceramic brakes ($8,500) and even raise the top speed of the M8, for a modest $2,500.
When it comes to depreciation then, with all this performance, why does the M8 drop off in value so quickly? Firstly, convertible versions tend to see the worst depreciation as they are the least practical model with the worst performance, so they are traded for a coupe.
In addition, when it comes to value and performance, the M5 offers you the same horsepower, in a more practical model, for a lot less money. I won’t be surprised if plenty of M8 owners are swapping after a year or so to the super sedan.
Our preowned top tips
- The M8 already includes most features as standard, but it’s worth looking for a model with the Bowers & Wilkins sound system
- Carbon bucket seats are much better for track days, but harder to live with
- I would avoid the piano black interior finish – it scratches and marks too easily
If you want to find out more about BMW models, and the best alternatives, check out the articles below: