BMW
The latest generation of the BMW X5, the G05, was first released in 2018. It showcased BMW's fourth-gen revolution of the luxury SUV that first saw the light of day in 1999. The 2018 X5 went on unchanged up until 2024, when it got what BMW likes to call "life-cycle impulse (LCI)." This mild refresh basically gave it a pair of new headlights and taillights, an illuminated grille, almost 30 inches worth of screens, and new electrified engines.
For what it represents, the BMW X5 is about as good as it gets, but there are drawbacks to keep in mind when buying, whether new or used. After all, premium luxury SUVs excel at one thing as well: depreciation. So, how much does the BMW X5 depreciate? According to assessments by iSeeCars, the BMW X5 depreciates slightly faster than most of its luxury midsize SUV counterparts. In three years' time, a new BMW X5 is going to lose 36.3% of its value, in five years, that number is going to climb to 56.1%.
CarEdge reports even higher numbers – a loss of 54.6% of value after three years and 59% after five years. In a list of 71 luxury vehicles, the X5 is placed 60th out of 71 and is one of the worst BMW models when it comes to resale value. Although these numbers can vary across different markets, trim levels, and equipment, they do give a clear picture of how much money you are set to lose if you buy one.
Why does the BMW X5 depreciate so much?
BMW
One of the main reasons why the X5 loses so much value is the high initial cost associated with buying one. With a base price of $81,075, the 2025 X5 is exactly two times more expensive compared to a similarly-sized 2025 Toyota Highlander SUV which starts at $41,815. There is simply more value to be lost as even small percentage drops translate to double the money lost.
BMW is also a very tech-friendly brand. This means that frequent updates to interiors, engines, and other features devalue older models. The luxury SUV market is also crowded, with tons of different brands, all competing for a limited amount of buyers. Luxury car buyers are also keen on financing and leasing newer models the moment they come out, and that leaves older examples with less market interest.
This is why all of the worst depreciating cars in 2025 are luxury cars. BMWs are complex and cutting-edge, and that drives maintenance costs. For many buyers, this means selling them after the warranty expires. Lastly, a BMW X5 is not exactly a rare car. In 2021 alone, BMW made more than 160,000 BMW X5s. Such supply combined with steady demand for the latest models contributes greatly to how fast older models depreciate.
Outsmarting BMW X5 depreciation
BMW
It's understandable that buyers are wary of purchasing a BMW X5, given how much value these vehicles stand to lose. However, there are ways to dodge that depreciation. First of all, leasing and short-term financing can help mitigate the "moderate to severe depreciation" curve. By financing short-term, balloon payment loans allow you to transfer some of that money into a new vehicle after the term ends, thus reducing the financial aspect of upgrading.
You can also wait a few years for the depreciation to take its toll, and buy one used. According to the same data at CarEdge, buying a two-year-old BMW X5 can save you up to $33,188. It's also worth noting that not all BMW X5s retain value equally. It's always best to go for popular powertrain options, trim levels. The car's color is also very important as a color can hurt a car's resale value. Regular and documented maintenance, good condition, and fewer problems are also going to help.
One thing that often gets overlooked is that depreciation isn't a linear curve. This means that selling at "the right time" could save you money. This usually means selling before the new model comes out or right before new updates arrive to the market. The season also matters since high-demand periods such as spring and summer can help get you more money back.
