Don’t Buy the BMW 7 Series if You Are Worried About Depreciation
Everyone knows that new cars, trucks, and sport utility vehicles depreciate when you drive off the lot the first time. However, some cars depreciate slower than others. Unfortunately for the BMW 7 Series, this sedan depreciated the most out of any vehicle in the study. How much did iSeeCars find that this BMW depreciated after five years? $47,874 more than the national average.
The BMW 7 Series had the highest five-year depreciation
iSeeCars looked at more than three million three-year-old and five-year-old used cars sold in 2022 to find that out. Luxury cars happened to lose the most value over the five years. The pandemic and semiconductor chip shortages have impacted new and used car prices, but luxury cars specifically lost the most value.
The BMW 7 Series saw a 56.9% depreciation over five years, an average difference of $61,923 from MSRP. “Luxury vehicles like the 7 Series also tend to depreciate at higher rates because used car shoppers don’t value their premium features as much,” said Karl Brauer, Executive Analyst for iSeeCars. The national average that buyers pay over MSRP is $14,049, or 33.3%. That means buyers of the 7 Series are paying $47,874 over the national average.
Next is the Maserati Ghibli, depreciating 56.3% ($51,168) over five years. Jaguar’s XF lost 54.0% of its value ($36,081), followed by the INFINITI QX80 at 52.6% ($44,265). The Cadillac Escalade ESV came in fifth place, losing 52.3% ($55,128) of its value over five years.
Besides the BMW 7 Series, these other vehicles depreciated the most
The only non-luxury option on the list is the Ford Expedition SUV, in 10th place. Ford’s large SUV depreciated 50.7%, with an average of $32,674 away from MSRP. Brauer said demand for full-size luxury vehicles like the Cadillac Escalade ESV and the Lincoln Navigator remains high, but automakers have had trouble keeping up.
|Model||Depreciation||Avg $ Difference from MSRP|
|BMW 7 Series||56.9%||$61,923|
|Cadillac Escalade ESV||52.3%||$55,128|
No matter the reason for depreciation, the numbers don’t lie. Vehicles on this list lost a lot of value in the first five years of ownership. However, that isn’t the case for all vehicles.
The Jeep Wrangler SUV depreciated the least
The Jeep Wrangler sport utility vehicle depreciated the least. The Wrangler’s average five-year depreciation was 7.3%, an average of $2,361 off from the MSRP. In the second spot is the Jeep Wrangler Unlimited, a four-door version of the SUV. This Wrangler Unlimited depreciated only 8.7% over five years. That’s an average difference of $3,344 over the MSRP.
“Based on historical data, it’s no surprise these two Jeeps were the best resale value winners in 2021 as well. The Wrangler is essentially the poster child for ‘Best Resale Value Awards,'” Brauer said. The Porsche 911 came in third place, although that still had a 14.6% depreciation. Since the 911 has a higher starting price, the average price difference is around $20,634. The Toyota Tacoma pickup truck was next with 14.9%, and the Honda Civic was in fifth place with 16.3%.
Depreciation happens with any vehicle, but the BMW 7 Series is an outlier. More expensive cars depreciate faster because the starting price is higher and driving a vehicle certainly doesn’t add value. Perhaps find a gently used 7 Series to save yourself some of that initial depreciation.