Originally Posted by Obioban
Not that I'm particularly in a place to judge, since I've bought 2 M3s new, but...
In 3 years his $30,000 car will be worth $25,000.
In 3 years your $75,000 car will be worth $40,000.
In those three years, you will have had similar parts costs and similar driving experiences. You're down $35,000, he's down $5000.
This is an extreme case. It would be better to compare a high mileage $30k M3 to a lower mileage M3 that costs around $40k.
It's easier to find a M3 in the $40k range, so you can shop around for one that's been taken care of.
It's extreme but also not all that accurate IMO. My ED 2013 M3 was around $64k, in 3 years, as he said, it'll be worth something like $45k, because it'll have maybe 40,000 miles on it by then, so call it $20k in depreciation. Now, the 2008 buyer, who pays $32k for 96k miles, is also going to put maybe 40,000 miles on it in 3 years, taking the grand total up to ~140k miles and it will also be 3 years older. There is no way he gets $25k for that resale. By then he'll be looking at $19k or less because the mileage is simply sky-high at that point and nobody will really want the car. So he hasn't lost $5000, he's lost $13k - but that's not all, since he had no warranty, he's also had to invest approx $3000 per year for proper maintenance, further depleting his ROI. In total then, he has now lost $22k from the price he paid for the car once he sells 3 years later. I've lost about the same with my new 2013 M, but of course I've received a brand-new, pristine, updated (LCI, CIC, etc) car exactly to my specifications with the peace of mind that I will not be out of pocket one red cent more than basic market depreciation. He has no such guarantee as he may encounter a large failure that in one swoop will devastate his investment. Also, did I mention that I went on a vacation in Europe and was treated like a king by BMW at the welt, fed well, even given unlimited free beer! Toured the factory and received my brand new car on a spinning pedestal from a guy in a suit. You don't get that with your '08 with 100k either.