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Depreciation after a year

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Old 07-18-2015, 11:29 AM
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Depreciation after a year

I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?

There is a chance id need to sell it after a year, thoughts?
Old 07-18-2015, 11:35 AM
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Originally Posted by Promise
I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?

There is a chance id need to sell it after a year, thoughts?
You are probably pretty close but if demand increase/decrease it will affect it.
Old 07-18-2015, 12:59 PM
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20k sounds about right.
Old 07-18-2015, 01:15 PM
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I think 18k-20k sounds about right. I plan on selling in 2 years and I think I would be losing around 7k and probably buy another C63S 2017.
Old 07-18-2015, 04:03 PM
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Originally Posted by NelsonRealTime
I think 18k-20k sounds about right. I plan on selling in 2 years and I think I would be losing around 7k and probably buy another C63S 2017.
why would you sell and rebuy the same car?
Old 07-18-2015, 05:40 PM
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Well, the odds are the car will look more aggressive and more features will be introduced, new rims, new bonnet design, new colors.

Financially, if things go well for me ill get the E63.
Old 07-18-2015, 07:53 PM
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Originally Posted by Promise
I'm in a weird predicament here and might need to wait another year to give my order the green light, I am wondering what the depreciation would be like if I put 7k miles on the car in a year, assuming the MSRP was 90, am I going to lose 20k?

There is a chance id need to sell it after a year, thoughts?
Makes better sense to lease it if you expect to have it that long. That way you are only financing the amount of depreciation.
Old 07-18-2015, 08:13 PM
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Originally Posted by NelsonRealTime
Well, the odds are the car will look more aggressive and more features will be introduced, new rims, new bonnet design, new colors.

Financially, if things go well for me ill get the E63.
is it typically 2 years in for a change?

that kinda sucks - one reason why i like BMW is they dont do this the changes are very minimal
Old 07-18-2015, 09:37 PM
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thats also going to kill the value of the car
Old 07-18-2015, 09:56 PM
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Originally Posted by NelsonRealTime
I think 18k-20k sounds about right. I plan on selling in 2 years and I think I would be losing around 7k and probably buy another C63S 2017.
How would you only lose 7k?
Old 07-18-2015, 10:36 PM
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Originally Posted by Bespoke88
is it typically 2 years in for a change?

that kinda sucks - one reason why i like BMW is they dont do this the changes are very minimal
Well 2 years would be ideal, it is nice to change cars in such a short time, specially due to the changes they make.

Also, there are options I didn't choose this time which I regret and wont be missing next time I purchase the car. I have OCD with the buttons, each time I see a blank space where a functioning button is supposed to be it aggravates me.

I have to be honest, I haven't bought a BMW because of the interior, it doesn't suit my taste. Mercedes beats BMW on the interiors every time with the equivalent model. BMW's exterior is slightly more appealing than Mercedes, it is more sporty.

Each to their own.

Originally Posted by Promise
How would you only lose 7k?
Assuming the car depreciates $20k a year by the second year the value would be around $43,700.00 and I would be owing around $51,000.00. To turn in the car I would to fork out $7k in the best case scenario, it could be even more. I should assume the worse case scenario, it would really be around $10k.
Old 08-25-2015, 02:23 PM
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Lease new, buy used. That is what I have been told by many car dealers.
Old 08-25-2015, 11:34 PM
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Originally Posted by ibeforreal
Lease new, buy used. That is what I have been told by many car dealers.

That's great for the dealership as they get to "sell" the car twice.

Leasing is no better than buying to avoid depreciation. The single largest component of a lease payment is the expected depreciation during the lease period.

Lessees pay for depreciation, they don't avoid it in any way.
Old 08-26-2015, 11:03 AM
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I totally agree with you. The largest depreciation comes at the front end of the lease/purchase in the first two years.
Old 08-26-2015, 11:14 AM
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Originally Posted by NelsonRealTime
Well 2 years would be ideal, it is nice to change cars in such a short time, specially due to the changes they make.

Also, there are options I didn't choose this time which I regret and wont be missing next time I purchase the car. I have OCD with the buttons, each time I see a blank space where a functioning button is supposed to be it aggravates me.

I have to be honest, I haven't bought a BMW because of the interior, it doesn't suit my taste. Mercedes beats BMW on the interiors every time with the equivalent model. BMW's exterior is slightly more appealing than Mercedes, it is more sporty.

Each to their own.



Assuming the car depreciates $20k a year by the second year the value would be around $43,700.00 and I would be owing around $51,000.00. To turn in the car I would to fork out $7k in the best case scenario, it could be even more. I should assume the worse case scenario, it would really be around $10k.
So how would you lose only 7k? lol, no down payment?
Old 08-26-2015, 12:42 PM
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Originally Posted by looney100
Leasing is no better than buying to avoid depreciation. The single largest component of a lease payment is the expected depreciation during the lease period.

Lessees pay for depreciation, they don't avoid it in any way.
+1
Some of course will minimize this depreciation by getting tax deduction through business. If not going that route, buying will still save more money in the long run compared to leasing.
Old 08-26-2015, 07:53 PM
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Buy new and trade in every year.... come-on man dealers got to eat!
Old 08-26-2015, 09:52 PM
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Originally Posted by Bespoke88
is it typically 2 years in for a change?

that kinda sucks - one reason why i like BMW is they dont do this the changes are very minimal
Not 2. 4 years. I'm waiting for the mid-cycle FL'ed version of the Coupe, which will have comprehensive exterior/interior/engine upgrades.

Anything prior to the FL is still considered PFL, which will have little to no substantial changes.
Old 09-02-2015, 08:24 PM
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If depreciation is of a concern to you, then you are in the wrong market. All high end cars have huge depreciation because as a percentage, the higher cost makes them huge. A 10% depreciation on a $100K car is $10K, on a $30K car, its only $3k.
Old 09-02-2015, 09:04 PM
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Originally Posted by norb
If depreciation is of a concern to you, then you are in the wrong market. All high end cars have huge depreciation because as a percentage, the higher cost makes them huge. A 10% depreciation on a $100K car is $10K, on a $30K car, its only $3k.
were you a math major???
Old 09-05-2015, 03:50 PM
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Originally Posted by RDOCA
were you a math major???
lololololololol

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