Why Are BMW 7 Series So Cheap? Do Depreciation Affects 7-Series Value?

Are you wondering why BMW 7 series cars are so affordable in the used market? One key reason is their fast depreciation rate.

As a luxury vehicle, the BMW 7 series tends to lose its value much quicker than non-luxury vehicles.

The primary reason for this depreciation is the higher annual maintenance costs and relatively shorter lifespan compared to other car brands.

Consequently, buyers on the used market can find great deals on BMW 7 series cars, but should also be prepared for potential maintenance costs down the line.

Reasons for Low Prices

Depreciation Factors

One of the primary reasons for the low prices of used BMW 7 series cars is their significant depreciation over time.

For instance, after ten years, a 7-series BMW can lose up to 83% of its value. Some factors contributing to the fast depreciation include:

• High initial cost: Since the 7 series is a luxury car, it comes with a premium price tag.

• High maintenance costs: Luxury cars like the BMW 7 series often require expensive maintenance and repairs.

Market Dynamics

Another factor impacting the prices of used 7 series BMWs is the market dynamics. With an oversaturated market, the demand for luxury cars decreases, and sellers are forced to lower the prices to remain competitive.

When looking at used BMWs, it’s worth noting that second-hand buyers are less likely to shop for a car based on its luxury features.

Moreover, even with discounts ranging up to 56.9% off the original MSRP, a used 7-series BMW can still cost nearly $50,000, which means that affordability plays a huge role in the market dynamics.

Residual Values

The BMW 7 series has low residual values or the value retained after a given period of time. Some reasons for the lower residual value include:

• Competition with newer models: BMW constantly releases new models with improved features and pricing incentives, which can negatively impact the residual values of older models.

• High ownership costs: As mentioned before, maintaining luxury cars like the BMW 7 series can be expensive in the long run. Many used car buyers are aware of this, which could further drive down the residual value of these vehicles.

In conclusion, by understanding these factors, you’ll be better informed when considering the purchase of a used BMW 7 series car.

Keep in mind not only the initial cost but also the ongoing ownership costs and how market dynamics may affect the residual value of your potential purchase.

Maintenance and Repair

Ownership Costs

Owning a used BMW 7 Series may be more affordable upfront, but it’s essential to consider the ongoing maintenance costs.

In the first 10 years of service, you can expect to pay around $14,453 for maintenance and repairs. These costs are $2,492 higher than the industry average for luxury sedan models.

Mechanic Expenses

Apart from regular maintenance, mechanic expenses can significantly add to your ownership costs. BMWs are known for their high-end engineering, which increases the need for specialized mechanics with higher labor rates.

Be prepared for service expenses that vary between $150 to $400 per 10,000 miles, and major services that can cost up to $1,000 or more.

Garage Service

Your garage service frequency is another factor that can impact your overall expenses. For a 7 Series, preventative maintenance is crucial to ensure its reliability and extend its lifespan.

Follow the recommended service schedule to avoid hefty repair bills down the line and ensure your BMW stays in great shape on the road.

By understanding these costs, you can make an informed decision when considering a used BMW 7 Series and determine if it’s the right choice for you.

Comparing to Other Cars

German Luxury Competition

When looking at the used market, you’ll notice a significant price difference between the BMW 7 Series and vehicles like the Audi A8 or Porsche 911.

While all three are considered high-end German luxury vehicles, the 7 Series experiences a faster depreciation rate, which translates to lower prices after a few years. Keep in mind that the BMW 7 Series still offers excellent handling and a refined interior.

Non-Luxury Alternatives

On the other hand, if you’re considering non-luxury cars as alternatives, you’ll find a wealth of options.

Vehicles like the Jeep Wrangler, Toyota Tacoma, and Ford Expedition offer versatility and reliability, but they won’t provide the same level of luxury as the 7 Series.

When assessing lower-tier BMW models, such as the X7 or Z4, you’ll still enjoy the brand’s renowned driving experience but might miss the flagship features of the BMW 7 Series.

Consider other options like Honda Civics or Lincolns as they provide decent comfort and performance without breaking the bank. Ultimately, weigh your priorities and make a decision that aligns with your preferences and budget.

Models and Engine Options

Common Variants

You’ll find the BMW 7 series in classic models such as the E38 and E32. Known for their luxurious style, the 740i and 750i variants feature powerful engines. See more best BMW engines details and names.

Hybrid and Electric Models

The 7 series offers a plug-in hybrid version with a turbocharged 2.0-liter four-cylinder engine and an electric motor, combining performance and efficiency. Keep an eye out for future electric models in BMW’s lineup.

Additional Considerations

Technology and Electronics

Regarding the BMW 7 Series, particularly the 760Li and Alpina B7, one major factor that impacts resale value is the complexity of its electronics. However do realize that there are few issues with Alpina B7 BMW car that should be avoided.

As a flagship model, it comes with advanced features, but older models may have outdated technology compared to modern alternatives like the best Mercedes S Class, making them less desirable. Moreover, repairs for electronic components could be costly if not covered by warranty.

Styling and Features

When considering a used BMW 7 Series, like one from an auction, keep in mind that its styling and features may be less appealing over time.

Changing tastes can affect resale value, and maintaining the car can be expensive, especially if you require specialized BMW engineering or need to visit a BMW dealership for certain repairs. As an owner, be mindful of the cost of maintenance and potential ownership challenges.

Frequently Asked Questions

High maintenance costs?

Yes, BMW 7 Series cars are known to have higher maintenance costs compared to other luxury vehicles.

This is partly because used BMWs tend to have shorter lifespans and more problems, leading to increased annual maintenance expenses. But, remember that this doesn’t mean all 7 Series models will have high costs, as individual car care and usage may vary.

Mileage expectations?

While the exact mileage you can expect from a used BMW 7 Series depends on the specific model and its condition, some models have decent fuel-economy ratings.

For example, the 2022 BMW seven-cylinder 740i and 750i both have better-than-average fuel efficiency. Ultimately, your mileage expectations will depend on your driving habits and the car’s maintenance history.

Depreciation reasons?

Used BMW 7 Series cars sell for lower prices because they depreciate rapidly due to factors like high maintenance costs, competition from new BMW models, and a shorter-than-average lifespan. This depreciation may make it attractive for some buyers seeking luxury options on a budget.

Is BMW 7 Series bulletproof?

The regular BMW 7 Series models are not bulletproof. However, BMW offers a specialized Security Edition called the BMW 7 Series High Security, which comes with armored features, including bullet-resistant windows and body panels.

This edition is specifically designed for upper-class customers or those who require extra protection when traveling, but keep in mind that it is not the standard offering.