11-21-2004, 10:35 PM | #1 |
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(Why would this be?) 540 vs 740 pricing
I was back at the Autoadvantage site tonight and, for the hell of it, clicked on the 7-series page. I was shocked to see the prices of E38 740s as compared to E39 540s. The 7s were more or less the same price, if not cheaper, for the same year/mileage.
For example, this 740iL SPORT with only ~49K miles is only $35,950 The 540i 6-spd I was drooling over in the other thread has ~47K miles and they are asking $34,950. Really, this makes no sense to me. The difference in price when new had to be pretty significant. Now it's essentially ZERO. BTW, when I pointed out this 740 to my wife, she dismissed it with a short, "No stick." |
11-21-2004, 10:40 PM | #2 |
redefined
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massive dumping of E38s when the E65 came out?
too bad that one's white
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11-21-2004, 10:45 PM | #3 | |
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Re: (Why would this be?) 540 vs 740 pricing
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According to carsdirect, 1999 base prices: 740 $62,400 540 $51,100 528 $38,900 |
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11-21-2004, 10:47 PM | #4 |
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'02 545i, 18K miles, $53,950
'02 745i, 45K miles, $46,950 No comparable mileage/year comparison exists - Still, that seems to imply that 7's rapidly depreciate to be roughly the same price as 5s. |
11-21-2004, 10:47 PM | #5 | |
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Re: (Why would this be?) 540 vs 740 pricing
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So why is it that the 740s drop so much in value? On one hand, the 740iL is much more common than a 740i Sport, or a 540i/6. For comparison's sake, look at the value of a similar 740i Sport. How is it the "cheaper" short wheelbase is now worth several thousand more? Supply and Demand. Also, the big thing with the E38 (and other cars in its class) is the significant sticker price when new, and the troubel justifying the extra premium a few years later. Further, all of the electrical gadgets in these cars are a mechanics best friend, and an owners nightmare. These cars are pricey to fix, and it takes its toll on resale. As a model line, BMW has had fantastic resale value with the 3-series, 5-series, and X5s. Looking at market value and residuals when we buy off-lease cars, we see that BMW is usually not too far off on these cars, and that their predictions were pretty good (and remember 3 years ago when people complained that the residuals were too high, and that these cars would never hold that value?). The Z3s (and eventually Z4s) and 7-series have poor resale, and we notice that BMW is often off by several thousand on their residuals. In more than one case, I've seen a 7er come back with a residual $10,000 too high. The cars just don't hold the value that the other BMWs do. Unfortunately, in order to sell new ones, BMW has to keep the inflated residuals, and they just have to suck up the loss when the car comes back in 3 years worth much less.
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11-21-2004, 10:50 PM | #6 |
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They do list an '01 740i Sport (Black/black) as "coming soon". 62K miles, $31,950.
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11-21-2004, 10:51 PM | #7 | |
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Re: (Why would this be?) 540 vs 740 pricing
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11-21-2004, 10:55 PM | #8 |
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Just looked at the edmunds values.
All with 50k miles and similarly configured in outstanding condition: 740 $21k (33%) 540 $26k (51%) 528 $21k (54%) 328 $19k (57%)
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11-21-2004, 10:58 PM | #9 | |
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11-21-2004, 10:58 PM | #10 | |
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Re: (Why would this be?) 540 vs 740 pricing
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