Why does the BMW X5 depreciate so rapidly?
2 Answers
Depreciation is relatively fast only when compared to the value retention rate of low-end vehicles. Below are relevant details about the BMW X5: 1. Interior: The interior design feels familiar, yet the new BMW X5 incorporates more premium decorative materials. Aside from the driving dashboard, the entire console appears lower, enhancing the brightness of the cabin space. The central LCD display has been replaced with a large, independently designed thin-screen panel. Additionally, the new BMW X5 features real wood trim and silver decorative frames. Due to the increased dimensions of the new model, the interior space feels more spacious, and the rear trunk capacity has been expanded to 1,870 liters. 2. Powertrain: The entry-level model of the all-new X5 will be equipped with a 2.0T engine delivering a maximum power of 245 horsepower. Furthermore, the new model will also offer 3.0T and 4.4T engine options. Paired with these engines is an 8-speed automatic transmission from ZF.
The BMW X5 depreciates so much mainly because its new car price starts high. The BMW brand premium is too strong, with the entry-level model costing around 600,000 to 700,000 RMB. For ordinary people, the car loses over 10% of its value immediately after purchase. The market competition is fierce, with the Mercedes-Benz GLE and Audi Q7 constantly upgrading, forcing the X5 to frequently update its models, making older versions quickly outdated. Plus, there are reliability issues—I’ve repaired a friend’s X5, and the electronic systems had many faults. Fixing a broken sensor costs several thousand RMB, and the high maintenance costs make second-hand buyers hesitant. The new energy trend adds fuel to the fire—electric vehicles like the Tesla Model Y are gaining momentum, while traditional fuel SUVs are being neglected. When buying a car, it’s not just about the brand; in the long run, calculating depreciation, the resale value really can’t compare to brands like Lexus.