When you see the headline for this post, I know what you’re thinking: Yes, we know, luxury cars depreciate quickly — this isn’t anything new. But I think the latest BMW 7 Series is really exceptional in how quickly it’s losing value, and it’s amazing to me how cheaply you can buy a used 7 Series.
Here’s the situation: the current BMW 7 Series debuted for the 2016 model year, and it’s been recently refreshed for the 2020 model year with some new technology and a slightly new look. That’s all well and good. But while a brand-new 2020 7 Series is easily a $100,000 proposition, it’s absolutely amazing to me how cheap a 2016 7 Series has become.
Just how cheap are we talking? Right now, there are 976 different 2016 7 Series models listed for sale on Autotrader, and an amazing 273 of them are under $40,000. That means these cars have lost $60,000 — or more — to depreciation in just three years. These vehicles still look brand new, they have all the latest BMW technology (or very close to it) and they’re priced in the $30,000 range. In fact, of the 976 different 2016 7 Series models for sale on Autotrader, a full 843 of them — more than 85% — are under $50,000.
To me, this is a bargain that goes well beyond the usual luxury car bargain situation, especially since many of these 7 Series models are offered with BMW certified pre-owned (CPO) warranties. There are many explanations to account for the depreciation, like a general lack of consumer interest in sedans, and consumer fears about expensive technology as it ages, and that sort of thing. But to be able to pick up BMW’s flagship model, three years after it went on sale, while it still looks fresh, for $35,000 or $38,000, is — to me — an incredible deal, and far beyond what you’d get with a Mercedes S-Class. As a result, I highly recommend considering one — though I also recommend considering a warranty. Find a BMW 7 Series for sale
MORE FROM OVERSTEER:
It’s Cheaper to Buy a Used BMW or Mercedes-Benz Hybrid Than a Toyota Prius
Autotrader Find: Stretched 2016 Cadillac Escalade for $109,900
Here Are Some Great Hot Hatchback Bargains for Sale on Autotrader