BMW X5 Depreciation: Do They Hold Their Value?
Here's everything you need to know about BMW X5 depreciation: if it holds its value, what its resale value looks like, and general buying info.
The BMW X5, a luxurious and versatile SUV, has been popular among car enthusiasts since its introduction in 1999. Known for its impressive performance, sleek design, and advanced features, the X5 has consistently been one of BMW’s best-selling models. Its combination of comfort, practicality, and driving dynamics has made it a favorite among those seeking a premium SUV experience.
However, like most vehicles, the BMW X5 is not immune to depreciation. While it may not lose half its value immediately after leaving the dealership, the X5’s value can still decrease significantly within the first few years of ownership.
This raises the question: how well does the BMW X5 hold its value over time, and what factors influence its depreciation? This post will explore the essential points regarding the BMW X5 depreciation and provide insights for potential buyers.
BMW X5 Depreciation: How Well Does It Hold Its Value?
This section examines a few data-driven reports from trusted outfits like iSeeCars and CarEdge.
As expected, the X5 faces significant depreciation over time, according to iSeeCars.com. After just three years of ownership, the X5 loses 40.3% of its value, resulting in a resale value of $43,640. This depreciation rate is higher than the average for its category, the BMW X5 (36.4%), and also exceeds the average depreciation for all luxury hybrid midsize SUVs (38.6%), luxury midsize SUVs (34.8%), SUVs (32%), and cars (30%) over the same period.
As time progresses, the BMW X5 depreciation accelerates. After five years, the X5 has lost 59.4% of its value, leaving a resale value of only $29,707. This five-year depreciation rate is notably higher than the average for its category (55.1%) and slightly above the average for all luxury hybrid midsize SUVs (57.6%). The X5’s depreciation continues to outpace other vehicle categories, with luxury midsize SUVs, SUVs, and cars experiencing average depreciation rates of 54%, 45.3%, and 42% over the same five-year period.
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The trend persists over longer ownership periods, with the BMW X5 losing 72.8% of its value after seven years and a staggering 83.1% after ten years. These depreciation rates consistently exceed the averages for its category and other vehicle segments. After ten years, the X5’s resale value plummets to a mere $12,342, significantly lower than the average residual values for other luxury midsize SUVs, SUVs, and cars.
Meanwhile, CarEdge provides a more generous analysis that the X5 will lose approximately 46% of its value after just five years of ownership, resulting in a resale value of $39,625. This depreciation rate places the X5 60th out of 71 luxury models, indicating that it struggles to retain its value as effectively as many of its rivals.
Over ten years, the BMW X5’s depreciation continues to accelerate. The vehicle is expected to lose over 55% of its original value, which is a substantial financial hit if you want to sell the SUV later. This rapid depreciation disincentivizes buying a brand-new unit, as the vehicle’s value diminishes quickly over time.
DO BMWS HOLD THEIR VALUE?
If you’re interested in a BMW, it’s critical to ask one question - do BMWs hold their value?
Used BMW X5 Buyer’s Guide (Powered by CoPilot Price Pulse Tool)
For this section, we used our handy Price Pulse Tool to examine the current performance of the 2020 BMW X5 in the used car market. Here’s what we found:
The X5 is in high demand
If you’re in the market for a luxurious SUV, the 2020 BMW X5 might be on your radar. Right now, the X5 is in high demand, so you might have to pay more than expected. This could affect how much the car is worth if you decide to sell it in the near future.
Outlook into the BMW X5 depreciation
Over time, the X5’s value is expected to decrease at a steady rate, similar to most vehicles. Even though you might be paying more for it now, the X5 should still be worth a decent amount down the line. Just keep in mind that because of the current higher price, the value might drop a bit quicker at first compared to what was originally predicted.
The X5’s resale value
The good news is that the 2020 BMW X5 will likely hold its value quite well in the coming years. The X5 is a popular choice thanks to its luxurious features and BMW’s strong reputation. If you plan to sell or trade in your X5 within the next few years, the higher price you pay now could help compensate for some of the initial value lost.
Timing considerations
While the current market favors sellers, buyers should carefully consider their long-term ownership plans and budget before making a decision. If the X5 continues to be priced higher than expected, it might be smart to wait until the market evens out before making a purchase. But if you have your heart set on the X5 and plan to keep it for a long time, paying a bit more now likely won’t make a huge difference in the long run.
Overall, the 2020 BMW X5 (or the model in general) can be a good value for used car buyers, especially if you find one at a reasonable price. However, remember that it’s still a luxury vehicle, so the depreciation rate can be quite significant compared to non-luxury midsize SUVs.
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BMW X5 Resale Value vs. Competitors
The BMW X5 stands out in the luxury SUV market with a strong resale value. After five years, it retains about 46% of its initial value, as per CarEdge. In comparison, the Mercedes-Benz GLE is a close competitor but tends to depreciate slightly more, retaining around 50% of its value after the same period.
The Audi Q7 also competes closely but depreciates at a similar rate to the X5, maintaining around 47% of its value after five years. While competitive, it still falls slightly behind the X5 in terms of resale value. The Lexus RX 350, known for its reliability and lower maintenance costs, retains about 51% of its value over five years, making it a strong contender alongside the X5.
Overall, the BMW X5 offers a competitive resale value, maintaining a significant portion of its worth over time. It performs slightly better than the Mercedes-Benz GLE and Audi Q7 and is comparable to the Lexus RX 350.
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