BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > M3 (E90 / E92 / E93) > New and Preowned M3 Pricing, Ordering, Tracking / European Delivery / Dealer Reviews
 
Post Reply
 
Thread Tools Search this Thread
      01-08-2010, 03:27 PM   #1
KingJaffeJoffer
Enlisted Member
 
Drives: Toyota
Join Date: Apr 2009
Location: East Coast

Posts: 49
iTrader: (0)

So, with 2011s four months from being stateside...

Aren't the 2008-2010s in for some immediate depreciation? These vehicles will be prematurely aged by 6 months will they not? LCIs are one thing, but moving up the model year rollout by 6 months would seem to have some profound implications. How does BMW move the 500+ 2010s in the US without discounts?
KingJaffeJoffer is offline  
0
Reply With Quote
      01-08-2010, 04:07 PM   #2
Technic
Lieutenant General
 
Technic's Avatar
 
Drives: 2012 E92 M3, 2014 528i
Join Date: Apr 2005
Location: Ft Lauderdale, Florida

Posts: 11,003
iTrader: (17)

Garage List
2004 M3  [0.00]
Quote:
Originally Posted by KingJaffeJoffer View Post
Aren't the 2008-2010s in for some immediate depreciation? These vehicles will be prematurely aged by 6 months will they not? LCIs are one thing, but moving up the model year rollout by 6 months would seem to have some profound implications. How does BMW move the 500+ 2010s in the US without discounts?
The MY2008 already depreciated at least $6000 just by Sept 2008, with a one-two-three punch of the MY2009 introduction, the new iDrive introduction and the economic crash of 2008.

Then by January 2009, the other one-two punch was an additional $7500 trunk money of leftover MY2008 M3 on top of any other incentives and discounts -the infamous $69,745 M3 selling at $49,000- and some MY2009 M3 selling already at invoice.

The fact of the matter is that the E9x M3 has been deeply depreciating since at least June 2008 at a much more quicker rate than the E46 M3, because every time BMW have some trunk money or discounts on the M3 the depreciation shoots up more than the "standard" depreciation of just model years passing by. The 6-months MY2010 run -already selling at $8000 below MSRP in at least one dealer- and the MY2011 LCI are just another one-two nails in the depreciation coffin.

The only thing that could help is that BMW have cut considerably the M3 production, so used M3 supplies should match more or less the used market in the long term, thus keeping some semi-decent resale values... but just not in the near term at all, IMO.
Technic is offline   United_States
0
Reply With Quote
      01-08-2010, 06:19 PM   #3
KingJaffeJoffer
Enlisted Member
 
Drives: Toyota
Join Date: Apr 2009
Location: East Coast

Posts: 49
iTrader: (0)

Quote:
Originally Posted by Technic View Post
The only thing that could help is that BMW have cut considerably the M3 production, so used M3 supplies should match more or less the used market in the long term, thus keeping some semi-decent resale values... but just not in the near term at all, IMO.
Yeah, I figured that they could try to let the current supply catch up with demand. But, many of the leased 2008s will be joining the market, too, and that could complicate things. I've been toggling back and forth between new (2011) and used. Last week, I set an acceptable Summer target for a 2008, e.g., a price that, if reached before August of this year, would seriously have me thinking about getting into a used M this year rather than a new one next year. Just today, I found an acceptable car. At $2K less than my target. It does not have the CF roof, but other than that, it has what I want. Now, I figure that I've got 7 months to look for the right vehicle at acceptable price points.
KingJaffeJoffer is offline  
0
Reply With Quote
      01-09-2010, 08:45 AM   #4
mkoesel
Moderator
 
Drives: 2015 Felt IA2
Join Date: Jun 2006
Location: Canton, MI

Posts: 13,682
iTrader: (1)

Quote:
Originally Posted by KingJaffeJoffer View Post
How does BMW move the 500+ 2010s in the US without discounts?
They probably don't.

Just like '08's were discounted when the '09's got here and '09's (and even some '08's still left) were discounted when the '10's got here.

Everything is moved by forward six months this year but like Technic said, that is just another line in what is unlikely to be a bright resale story value for E9x M3s.
__________________
A gen-u-ine BMW eff-eight-zero with them tandem clutches in the transmission and that dad gum sun roof on the top-a da cawr.
mkoesel is offline   United_States
0
Reply With Quote
      01-09-2010, 09:00 AM   #5
lucid
Major General
 
lucid's Avatar
 
Drives: E30 M3; Expedition
Join Date: Apr 2007
Location: USA

Posts: 8,034
iTrader: (0)

Quote:
Originally Posted by Technic View Post
The MY2008 already depreciated at least $6000 just by Sept 2008, with a one-two-three punch of the MY2009 introduction, the new iDrive introduction and the economic crash of 2008.

Then by January 2009, the other one-two punch was an additional $7500 trunk money of leftover MY2008 M3 on top of any other incentives and discounts -the infamous $69,745 M3 selling at $49,000- and some MY2009 M3 selling already at invoice.

The fact of the matter is that the E9x M3 has been deeply depreciating since at least June 2008 at a much more quicker rate than the E46 M3, because every time BMW have some trunk money or discounts on the M3 the depreciation shoots up more than the "standard" depreciation of just model years passing by. The 6-months MY2010 run -already selling at $8000 below MSRP in at least one dealer- and the MY2011 LCI are just another one-two nails in the depreciation coffin.

The only thing that could help is that BMW have cut considerably the M3 production, so used M3 supplies should match more or less the used market in the long term, thus keeping some semi-decent resale values... but just not in the near term at all, IMO.
Good post. Yes, the E9X resale value has not been anything like the previous models so far for the reasons you outlined. Things will eventually improve IMO, but that will most likely take time.

OP, this is a great time to buy a new or a used car. You'll get a great deal either way. If you want a new car, I'd try to get a deal on a 2010 after the 2011s start showing up on lots.
__________________
lucid is offline   United_States
0
Reply With Quote
      01-09-2010, 11:45 AM   #6
japears2
New Member
 
Drives: 2011 e92 M3-MR
Join Date: Jan 2010
Location: AZ

Posts: 19
iTrader: (0)

This is very interesting. I am thinking of trading in my Lotus and getting into an e92 m3. I was originally looking to get an 08 with lower miles. Would getting a different model year or waiting yield a lower loss later on down the road? (P.S. this is my first post but i have been lurking for quite some time)
japears2 is offline  
0
Reply With Quote
      01-09-2010, 12:11 PM   #7
Technic
Lieutenant General
 
Technic's Avatar
 
Drives: 2012 E92 M3, 2014 528i
Join Date: Apr 2005
Location: Ft Lauderdale, Florida

Posts: 11,003
iTrader: (17)

Garage List
2004 M3  [0.00]
Quote:
Originally Posted by japears2 View Post
This is very interesting. I am thinking of trading in my Lotus and getting into an e92 m3. I was originally looking to get an 08 with lower miles. Would getting a different model year or waiting yield a lower loss later on down the road? (P.S. this is my first post but i have been lurking for quite some time)
IMO, get the latest and cheapest M3 that you can get and that matches what you exactly are looking for (colors/options), and if you are financing then the lowest interest rate possible. Leasing is right now a big money dump.

It sounds obvious but if you think about it it is not, as although there are some '09 M3 still on dealer lots (at least 50 MY2009 and 160 MY2010 M3 left nationwide according to autotrader) that could be hit with another round of discounts in the coming weeks just to clear them out, and the same could be happening to those MY2010 after April, if any of those cars is not near what you are looking for then it will not matter how much money you will save.

Last edited by Technic; 01-09-2010 at 01:33 PM.
Technic is offline   United_States
0
Reply With Quote
      01-09-2010, 01:29 PM   #8
trendy26
First Lieutenant
 
Drives: 2013 E92 M3
Join Date: Nov 2008
Location: Florida

Posts: 363
iTrader: (0)

I guess I'm confused as to why BMW did not put any special Finance Rate on the 2010 M3's.... They would clear them out, even if they lowered the interest rate to 3.9%.
trendy26 is offline  
0
Reply With Quote
      01-09-2010, 01:35 PM   #9
ideliver
Major
 
ideliver's Avatar
 
Drives: 08 E60 M5 & 08 Infiniti QX56
Join Date: Feb 2008
Location: At the gas station

Posts: 1,232
iTrader: (0)

Garage List
2006 MB S430 SOLD  [0.00]
2003 E46 M3  [0.00]
IMHO...get exactly the car that you want at the price that you can afford...and understand that your car WILL depreciate...but this will not decrease your enjoyment of your car

and interesting read about depreciation
__________________
Cars I've owned '76 Chevelle 350 RIP '82 Monte Carlo 350 RIP '82 Mustang 302 RIP '88 Honda CRX RIP '88 Olds Toronado sold '94 Toyota Tercel sold '99 Acura TL sold 2002 Porsche 911 sold 2003 E46 M3 Blk/gr 2006 MB S430 sold Current: 2008 Infiniti QX56 & 2008 E60 M5

ideliver is offline  
0
Reply With Quote
      01-09-2010, 02:19 PM   #10
smmmurf
Colonel
 
Drives: 2009 M3 Sedan 6MT
Join Date: Feb 2008
Location: Pleasanton, CA

Posts: 2,101
iTrader: (7)

Aside from the '08 cars that were purchased at near or over MSRP, the depreciation of the other cars sold at a discount is pretty reasonable. If you bought your car for invoice or a bit less then you are doing fine, IMO. I do agree that the E46 held its value much better when comparing market value to MSRP, though.
__________________
M3 Sedan - AW/Black - 6MT - no moonroof - no folding seats - RAC RG63 - clear bra by Omega Werks
smmmurf is online now  
0
Reply With Quote
      01-09-2010, 03:57 PM   #11
mkoesel
Moderator
 
Drives: 2015 Felt IA2
Join Date: Jun 2006
Location: Canton, MI

Posts: 13,682
iTrader: (1)

Quote:
Originally Posted by trendy26 View Post
I guess I'm confused as to why BMW did not put any special Finance Rate on the 2010 M3's.... They would clear them out, even if they lowered the interest rate to 3.9%.
2010 is still the current model year. They will probably wait a bit longer before starting incentives.
__________________
A gen-u-ine BMW eff-eight-zero with them tandem clutches in the transmission and that dad gum sun roof on the top-a da cawr.
mkoesel is offline   United_States
0
Reply With Quote
      01-09-2010, 04:16 PM   #12
TailHappyM3
Lieutenant
 
Drives: M3
Join Date: Oct 2008
Location: Calgary

Posts: 534
iTrader: (0)

Quote:
Originally Posted by ideliver View Post
IMHO...get exactly the car that you want at the price that you can afford...and understand that your car WILL depreciate...but this will not decrease your enjoyment of your car

and interesting read about depreciation
Great read. Thanks for the link. It was my exact attitude when I purchased and owned my GT3 albeit only for a little while but boy was it worth it! Lots of great memories with my son driving through the Rockie Mountains. No regrets especially since that experience only cost me about 7K since I purchased it used for half the price. My only regret is selling it too soon but truth be told I was getting too comfortable with the car and had a few close calls.
TailHappyM3 is offline   Canada
0
Reply With Quote
      01-09-2010, 05:24 PM   #13
lucid
Major General
 
lucid's Avatar
 
Drives: E30 M3; Expedition
Join Date: Apr 2007
Location: USA

Posts: 8,034
iTrader: (0)

Quote:
Originally Posted by smmmurf View Post
Aside from the '08 cars that were purchased at near or over MSRP, the depreciation of the other cars sold at a discount is pretty reasonable. If you bought your car for invoice or a bit less then you are doing fine, IMO. I do agree that the E46 held its value much better when comparing market value to MSRP, though.
Good point. I bought during initial launch, so my car's value really did take a dive. I had lots of fun with it on the track that summer though, so looking back, it was worth it...
__________________
lucid is offline   United_States
0
Reply With Quote
      01-09-2010, 06:39 PM   #14
mtla4
Lieutenant Colonel
 
Drives: Turbo Festiva
Join Date: Mar 2008
Location: Montreal

Posts: 1,721
iTrader: (2)

My strategy will be getting an 08(Before my 08 135I( turns 3 years old in april) keep it for 2-3 years and trade it in for a last year production car and make it a keeper. I'm just waiting for the canadian dollar to be on par and I will get one.
__________________
Originally Posted by corneredbeast
An engine from a Z06 Corvette. A differential from a Vespa. Damn

Quote:
Originally Posted by Severious View Post
Its because a lot of BMW owners are housewives or business professionals and know little about cars other than BMW's are a status symbol in their own circles so that have to have one. But exotic car owners know cars, that's why they are willing to spend for a killer car and they know something different when they see one.
mtla4 is offline   Canada
0
Reply With Quote
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


All times are GMT -5. The time now is 11:25 AM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST