M3 May Depreciate Big Time!

[JerezBlue!]

Originally Posted by Greg P

JerezBlue is right in terms of being able to find cars if you try. Even though I ordered 2 years ago from a large midlands dealer, I was still not due to receive my vehicle until Q1 2008 for being 7th on their list. 10 emails sent to various dealers last night resulted in as many phone calls this morning, several demo cars(new and used) were offered to me, but then that magic moment, the offer of a build slot for arrival around 11 November 2007 !!!

Nice One!

[Caravello]

The USA market will eat up the new M3. The waiting lists alone are already showing solid demand, but this gen will be different b/c the rivals are better.

What concerns me at this point is how BMW treats the imbalance between the Euro and dollar. If we go into Iran you can bet the imbalance worsens. Have to wait and see.

If $60,000 US dollars only amount to about 43,000 Euros, then wouldn't BMW have to price the car well above $60K in US dollars? What kind of car will 43,000 Euros get you in Europe currently? I am not an economist by any means, but maybe someone in here knows.

[Big Windy]

traditionally us spec BMWs and european ones are similarly priced despite the difference in the exchange rate. 60,000 euros for an m3 in germany definitely doesn't mean 85,000 dollars in the US (thank god!). it has more to do with the auto economy and how BMW wants it to fit in relative to its competitors and their prices in each country.

[Caravello]

Originally Posted by redmtclimber

traditionally us spec BMWs and european ones are similarly priced despite the difference in the exchange rate. 60,000 euros for an m3 in germany definitely doesn't mean 85,000 dollars in the US (thank god!). it has more to do with the auto economy and how BMW wants it to fit in relative to its competitors and their prices in each country.

I see your point, that pricing will be based on the marketplace and where the M3 sits price-wise relative to its peers, but the exchange rate has never been so lopsided. Something has to give, no? Maybe BMW will make up for this in its financing and leasing programs? Maybe the "buyback" on the lease will be real high or something. I don't know, but the Euro and USA markets have never had to deal with the dollar being so cheap.

We'll see. I am expecting a moderate base price but that they will make the options more expensive. Something like that. I am expecting to spend $70,000, and if it's more too much than that then... I'll figure it out when I get to that bridge.

[mikeo]

The US is historically the largest market for M cars, but I must say I'm happy to see speculators taking it in the shorts, even if it is in the UK.

[kishg]

i must say that i am not that concerned about depreciation as long as it doesnt amount to domestic car levels. if i buy the m3 i will likely keep it till the next generation comes out. 5+ years is a good depreciation equalizer.

[Technic]

Originally Posted by Caravello

The USA market will eat up the new M3. The waiting lists alone are already showing solid demand, but this gen will be different b/c the rivals are better.

What concerns me at this point is how BMW treats the imbalance between the Euro and dollar. If we go into Iran you can bet the imbalance worsens. Have to wait and see.

If $60,000 US dollars only amount to about 43,000 Euros, then wouldn't BMW have to price the car well above $60K in US dollars? What kind of car will 43,000 Euros get you in Europe currently? I am not an economist by any means, but maybe someone in here knows.

Most probably true for the first year... after that I do think that it will be the regular 6,000 to 7000 sales a year. The Sedan and the M-DCT will help a lot in keeping the demand very close as before (E46), unless BMW price the M3 very agressively (which I think that it will, after seeing the sales reception on the M5, M6 and the M Roadster), IMO. And even that, BMW can't keep that aggressive price for too long...

The way I see it is that the M3 is no longer alone in its bracket. The C63, the RS4, the GT-R, the IS-F, the CTS-V are looking for the same customers. And when you pass the $60,000 bracket with cars that are based on regular mass production vehicles something got to give, no matter how "special" we think the car is.

This is becoming like those movies that make $50 million the first weekend and by the end of the month are being shown in the $2.00 theaters...

[Bmwboy018]

Originally Posted by JerezBlue!

I regret to say it, but in the UK the situation seems to be different for the E92 V8 M3 launch than it was for the most recent M5 launch.

BMW seem to have increased supply considerably, and like before, there are many speculators who have bought cars for an immediate premium sale but;

You CAN get build slots for December delivery from a several London dealers AND the speculators CAN'T seem to sell their cars at a premium - even £3k. Some are selling under list with 300 miles on the clock!

Also, I would have expected Demo Cars in UK showrooms all to have been pre-sold by now - but they simply haven't. IMO, this is clearly abnormal. At one time you couldn't get an M5 for love nor money.

I get the feeling that this situation is not being helped by the general caution in spending of UK consumers; which may mean major depreciation! I am now concerned that the M3 may suffer like the M6 did.

A new M6 costs £83k (standard spec) and an 18 month old M6 is £53k (standard spec); that's around 17% down in the first 12 months, which actually seems high to me for a BMW M Car.

The above is all financial, but from an emotional point of view once the focus on the M3 has died a little, I still think it'll be a great car as a daily drive.

Just to quote on that, in the current situation here in South Africa, M3 "second hand" with delivery mileage selling for way over msrp R100 000.00
US $ 14 285.00 +- over. Once again because of current supply and demand situation, will last as long as demand more than supply, then hopefully will not do a tumble like m6 or m5.... been doing alot of research on it and m3 turns out to be that much more of the purists car so general trend is prices should hold much better, but ofcourse no new car in this world is an long term investment today.... not property... enjoy it have fun, its kinda of like the extra's you put into it, for your satisfaction. However ofcourse one likes a car that hold a value better than others to help get into your next.