Why are 5-series cheaper?

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#4
I think you are correct, at least in the past while anyway. I think the residual percentages are a bit higher for the 3 series during the past quarter or so. Banks may be adjusting due to influx of lease returns, hard to say. There are great incentives for the 5 series, 4-5k off sticker. All of this may be temporary and due to style change. No such luck with the M5 though.
 

flashinthepan

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#6
I looked at used Bimmers & noticed the 5's depreciate faster initially, at least from the ones I was pricing. kkb.com would give you the blue book values.
 
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#7
I think he meant 525i, they haven't made a 535i in the US since 93, although they are coming back with the E60 (at least in europe, a 3.5 liter V8 shared with the new sixer).

As for the pricing, that 525i didn't cost much more than the 330 new. I think the 5 stickered around $35k base. The E39 chassis five series has been around since the 1997 model year, so it is perceived to be a little long in the tooth and the replacement E60 is just around the corner (here already?), so that may have something to do with it.

If you care about performance, a 330 is a better choice than a 525. That 2.5 has to work pretty hard in the 5.

All things being equal, the more expensive a car is the greater amount of depreciation, even if it happens at the same rate (%), and in most cases the rate of depreciation will be greater for the more expensive car.
 


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