Cheap used cars Blog

Understanding the residual value of used cars can help you make buying decisions that can save you a great deal of money down the road. The residual value is the percentage of the manufacturer’s original value that a car retains after ownership.

If a particular model of cheap used BMW car has a lower residual value than another used BMW model, it may be a sign that there are issues that negatively impact a particular model. The residual value is also based on the level of demand for a particular vehicle, offering insight into how easily you’ll be able to sell it.

Residual values are published every year and very useful for used luxury car shoppers to determine the approximate value of particular models. The residual value equation can’t consider every factor in determining how well a car will hold its value. For example, an unexpected dive in manufacturer popularity could greatly reduce demand for a particular vehicle although the quality and reliability are still strong.

With a little research about the residual value of various BMW models, you can learn to save yourself headache during ownership as well as money when it’s time to resell. If you’re in the market for a used BMW, refer to this guide to see how these used luxury cars stack up in terms of residual value.

How today’s used BMW models stacked up against other luxury cars according to Automotive Lease Guide

Among used luxury cars, the BMW 330 series won the 2 slot in terms of highest residual value (62%). This means that those selling a used BMW 330 will get a higher percentage of the original purchase price than those who purchased just about any other make or model of luxury car. The buyer of the used BMW 330 receives not only a car more likely to retain a high residual value, but a car that holds an overall higher combined value in terms of style and general ownership happiness.

The cheap used Mercedes car held 3 spots in the top ten with its CLK class, the E Class, and the SL Class. Other models in the top 10 were the Volvo XC90, the Infinity G35, the Land Rover Car, the Acura MDX, the Lexus ES 330, and the Lexus GX 470. Any of these used luxury cars is a great buy in terms of a high resale value. The lowest ranking car overall in terms of residual value was the Dodge Neon with a 26.1% residual value.

Used BMW’s ranked Top

In a recent study experts measured the actual value that various cars held over time. In this study, the used BMW 5-Series won a top spot for retained value. Leading with 1st place for its ability to retain value was the BMW Mini Cooper. Also forecasted that used BMW models across the board will retain their value best over the next 5 years.

Almost all of the top slots in the overall survey were awarded to luxury vehicles. No matter which type of use luxury car you choose, it’s much more likely to retain its value than a non-luxury vehicle. If you’re looking for a used luxury car with top grades, the used BMW 330 series, 5-Series, and Mini Cooper are winning choices.

The luxury car unit of Daimler AG, Mercedes-Benz car for sale the producer of high quality Mercedes S350 radiator support has announced recently that it may double the sales of its diesel vehicles in the US after successfully meeting the emission regulations in all states.

The Bluetec diesel motors equipped on Mercedes cars and sport utility vehicles were able to comply with the country’s strictest emission requirements especially in the state of California and because of this the luxury car maker will finally start marketing its vehicles in the US.

“When we’re able to have diesel in all states we’ll be in a position to possibly double the number of diesels we sell.” In an interview in New York, Mr. Lieb said that the models to be offered in the US will include cleaner models such as the re-engined versions of the M, GL and the R-Class SUVs.

The coming of Mercedes vehicles in the US is just perfect since according to the study conducted by J.D. Power & Associates, diesel’s share in the US car and light-truck market is likely to quadruple to 11.8 percent by 2015. This is attributed to the fact that automakers are already responding to calls and demands for emission controlled vehicles. Likewise, the fuel that powers half of the new cars distributed in Europe has been blocked from entering US since consumers associate it with heavy trucks and aside from that most of the gas stations in the US don’t offer it.

In California and in four other US states sales of new diesel autos are restricted since diesel vehicles are believed to emit soot and gases that are linked to heart and lung disease. The luxury unit of Daimler AG has started selling a diesel version of its E-320 sedan in all 50 states since its Bluetec engine was able to meet up with the emission standards required in the US.

Mercedes-Benz will also offer its new GLK small SUV on the market in early part of 2009.The GLK will be made to compete with BMW’s car for sale.

Daimler for this year is predicting record sales in the US which happens to be its second-largest market.The efforts to sell the model were dropped in 2005 attributed to the plunging of the dollar against the euro thereby reducing the vehicle’s profitability.

When buying insurance, most people ask for “full coverage” without knowing what they’re asking for. What’s the problem? There is no such thing as “full coverage”. While understanding your coverage is important for everyone, it is vitally important if you’re driving a Mercedes car, BMW car, Bentley car, Rolls-Royce car, Porsche car, Viper car, Ferrari car, Lamborghini car, Lotus car, or Aston Martin car, Land Rover car, Lexus car, Mazda car etc..

If you’re driving an expensive, exotic or high-performance car, you will want to make sure that after an accident you receive OEM parts, OEM paint, the ability to repair your vehicle at the auto body shop of your choice, and the amount of money needed for the repair.

Repairing an expensive car with non-OEM parts and/or improper workmanship will result in substantial diminished value. With expensive cars, even a proper repair will result in diminished value. What is diminished value? It is the lowered market value of a vehicle subsequent to repair. For instance, a Porsche or Ferrari will be worth less after an accident, even after it has been properly repaired.

You do not want to get into an argument with your insurance company as to whether or not your vehicle can be repaired or should be totaled. Often, insurance companies will want to repair your car, when you think it should be totaled. If the insurance company agrees to total your car, most insurance policies only provide “actual cash value” insurance coverage which would only give you with a payment based on the current replacement cost of your vehicle, less depreciation (the decrease in the value of your car due to use, deterioration and the passage of time).

In the event that an exotic or high-priced car is totaled, the best replacement coverage is “agreed value” or “stated value”. The only insurance companies have found to offer agreed value insurance are Chubb and MetLife.

What’s the difference between Chubb’s “Agreed Value Option” and MetLife’s “Equivalent New Automobile Replacement” coverage? For high-value cars, Chubb is definitely the better choice. Chubb offers its agreed value coverage every year and readjusts the agreed value upon policy renewal. From what we have seen, the adjusted agreed value even years and over 100,000 miles later is substantially higher than actual value. Additionally, on a different topic, Chubb also offers up to $1 million of underinsured coverage, which is also vitally important. Make sure you ask your Chubb agent for the maximum underinsured coverage.

For average value new cars, MetLife is a good choice. MetLife does not offer its Equivalent New Automobile Replacement coverage after the first year or first 15,000 miles. For drivers of most new cars, this is still a good value because it is not uncommon for someone to total their new car soon after purchasing it. Usually, just driving a car out of the showroom can result in as much as $10,000 depreciation.