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Depreciation (archive)

[ Follow Ups ] [ 5-series (E34) Message Board ] [ Msg. Board FAQ ]

Posted by Johnny on September 25, 2001 at 12:51:45:

In Reply to: thanks Johnny, I needed to hear some inspiration posted by skya on September 24, 2001 at 12:53:24:

Based on my car at new value until I purchased it froim the origional owner, these cars depreciate on average 12% per year. Now assuming the biggest depreciation is in years 2-5, then if you buy it past 5 years in age depreciation should be around 8%. They'll bottom out around $6-8000 at 12-15 years of age (estimate). Remember these cars are good for 150K - 250K miles.

So you buy at $15K , drive it 5 years (60 months), sell it for $8K. Depreciation is about $7K. $115 dollars per month to drive a $40K luxury sports sedan, not bad by my analysis.

Johnny
89 525i
130K



Thanks everybody, I read all your comments and appreciate the technical input.

I'll look deeper into the 525i/535i rather than the more expensive and costlier 540i. I love power, and I love status (I'll admit it, who doesn't) and I really do want a bimmer, my only concern is maintenance.

I'll visit that website listed in the previous link and check out that engine problem as I've just learned about it. I'm new to the E34 forum, as I've been spending over a year in the E46 forum exclusively.

Thanks for all the comments and keep those technical "look-outs" coming in.

BTW- I didn't find a VW Passat V4 4Motion for 15-20, but that's about my budget for another car (given that I'll get 10-12 for my Prelude).

ONE MORE QUESTION: What's the depreciation curve for the E34 525/535? It looks like the car cost 40K only 7-10 years ago- that's a 25-30K price drop. When do you expect it to level off? This is really an important factor for me as I just hate to lose money on depreciation (after all I'm losing enough money on the NASDAQ everyday)!!!





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