Rant: Why is trade-in value for a cheaper BMW 3-series higher than a more expensive 5-series

In 2019, I sorta hacked a BMW 530e. $59k MSRP car, payment of ~420/m. 36m residual at turn-in is $36k.

A few months later, I helped a friend get a 330 loaner, $48k MSRP car, payments of $330. 36m residual is aprox $28k. Both of our leases are due in a few months. We currently also have similar mileages on the cars.

These are our instant cash offers from. (Carvana, Vroom, Carmax are all within +/-2k). I guess he has equity and I don’t :frowning:

530e:

330i:

What’s the mileage on both? Also, any accident history?

No accident history , clean. Mileage both around 27-28k

5 series never had equity

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Carvana offered 42,000 for my 2021 530e with10k miles, but Rodo offered 55,000. Some companies are just off with some cars.

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every 2019 530e buyer was eligible for $4668 in tax credits, which deflates resale value, and BMW (unlike most PHEV manufacturers) inflated their residuals.

Bright side: you paid way less depreciation than you should have.

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You aren’t wrong, and I am not looking to make buck. I just find it humorous the a technically cheaper car is more valueable than a more premium car.

Firstly, The 530e was never the most desirable car.

Also if im not mistaken the 2019 model year was before the refresh so its a generation behind the current model. The 3 series while they did just announce the refresh, is still current.

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People also have a tendency to mistake price with value; something being more expensive does not necessarily translate into something being more valuable, especially going into the secondary market. This is why vehicles often only gain value up to a point, before additional options become just expenses.

Because the 530e isn’t desirable. People would much rather have a 540 or regular 530. Not to mention, once you get above the 3 series, most of BMW’s customers would rather drive a X5 over a 5 series

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I absolutely understand. Trade in values are based on market sentiment and demand. I just found it interesting that how people value different cars is so similar, despite those cars being vastly different.

They did, briefly.

5 series always depreciates a ton. The G30 also underwent multiple updates between 2019 and now (2020 got ID7, 2021 LCI). G20 hasn’t really changed.

It’s the same generation since 2017, and LCI was such a minor refresh that it should make no difference.

I believe MY2020 530e got a little more electric range, and I know the refresh also has a larger center screen (either my 2020 or my2021)

Correct, the tax credit was higher in 2020 because of the larger battery

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Is it true that with BMW financial it could be tough to make money from the equity.

but rodo is also a joke.

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I’ll sell rodo all the base model 530e’s they want for that. :grin:

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What is the advantage of the 530 over the 530e? I am of course biased with my LCI 530e and, although most of the changes to the BMW lineup are incremental at best, it’s tech is good, the performance for a heavy sedan is pretty good (not much different than the 530 even with the extra battery/drivetrain weight), and the 28 miles EV-only range offers those with short commutes the ability to avoid Costco lines.