Depreciation Writ Large: Used BMW iX Sales Tanking as Never Seen Before
BMW has had a tough time lately with its beaver fang grilles and rather controversial designs. At the top of that list is the all-electric iX SUV. Maybe it’s the design, or maybe it’s because it is an EV, but whatever it is, on the secondary market, the price of an iX is tanking like nothing we’ve seen before.
Could it be the price? The base 2024 iX starts at $87,100, while the more powerful iX M60 price is $111,500. A Rivian R1S SUV has a $78,000 base price, while the 2024 GMC Hummer’s base price is $84,650 but can easily exceed $100,000 for the EV3X version.
Is the BMW iX depreciation problem range?
But there are also other fees like handling charges and sales tax, which can top out at a total of $120,000 for the M60. Look, any BMW is a more expensive vehicle than most of its contemporaries because, you know, it’s a BMW. So that can’t be the problem when it comes to used versions.
Maybe it’s range. Nah, it gets between 274 miles and 324 miles depending on options like wheel size and battery size. So the overall range isn’t terrible.
But if price is a consideration and you’ve just got to have an iX, then the secondary market is where you need to look. And it is a great place to look because used iX numbers are very low. They’re very, very low. But that is a cautionary tale which we’ll get to in a moment.
If you want a BMW iX, maybe you should buy one used
There is a surprisingly good selection of what is virtually a new BMW model that private owners want to sell. And some have very few miles on them. Over the year it has been available, prices appear to be around 30% to 40% less than new iX prices. Yikes!
It appears that if you are looking for a premium SUV but don’t need a BMW, there are better versions at much cheaper prices. Like for instance, the Tesla Model X has three rows, better range, and is $80,000 for a dual motor all-wheel drive.
Or how about the Rivian R1T? As with the Model X, it has a better range and a cheaper price than the iX. And both it and the Model X get EV credits, which the iX doesn’t. The Model X gets the full credit, while the Rivian gets half. But that shouldn’t be an issue with the iX because you can’t get any credits for used EVs unless they sell for below $25,000.
If depreciation is bad after one year, what about three?
But here’s the thing. If depreciation is so terrible now, what will it look like in a year or two? Do you want to be saddled with a vehicle that depreciates 40% in the first year and then who knows how much the next? If you want your BMW to have some value in two or three years, maybe a different model is a better choice.
So, looking at the situation overall, if you’re not parsing the small differences between the BMW iX and its competitors, we see the design factoring into the depreciation equation. It is the one thing that really separates the iX from others in the premium SUV price range. And honestly, what buyers see before anything is how a vehicle looks. If they can’t get past that, then they move on to competitors.
While BMW Design is continually doubling down on its quirky decisions, the secondary market has called its bluff. Few really like the exterior design of the lowly BMW iX.