Latest E92 M3 Auction Prices - WOW

[jeremyr4]

I'm posting this as an FYI for those of you who are interested in wholesale values. 2 sales occurred today at the auctions for '08 M3 Coupes and, believe it or not, they cleared at $47k and $48k with 3k miles and 8k miles respectively. I can't comment on options because they aren't listed but that is a HUGE difference compared to Sept, when cars were clearing in the $54-59k range. It's probably attributed to the arrival of the '09s...

Anyhow, some food for thought for those of you who are considering buying '08s right now...

[MDCTFTW]

used 08s

[jeremyr4]

Yes - used '08s. My point is that with all of the incentives if you're buying (not leasing) then you want to consider that 0.9% financing may or may not make sense if the value of your '08 just lost $6-7k in the used markets compared to a couple of weeks ago (when you drive it off the lot).

Not sure how the math works out but this difference is bound to cut into the 0.9% financing savings...

[Robert]

Wow 13% drop within month is rough. You can also argue the 0.9% financing is what caused this drop. The real cost of ownership has been lowered with the 0.9% and created a price ceiling for preowned market.

[jeremyr4]

I know that the title is an obvious statement but here's a great example:

2007 BMW M6 (Late 2007 titled in Sept 2007) - ~$115k MSRP - 4,700 Miles - Was listed for sale at a local Ford dealer (in SoCal) for $74k - They just sold it at the auction for $67k!! That is a 42% difference for a 1 year old car with less than 5k miles.

Just goes to show you how bad it is out there, which is why I posted the information above regarding the '08 M3 coupes. Not sure what everyone's expectation is going forward with regards to their vehicle values but it's worth understanding what's happening in the market...

Hope all of this data helps,
Jeremy

[jaay11]

I guess I would say don't worry about these numbers unless you plan to get rid of the car in three years.....in which you'll likely hear the "upside down" speech if you still owe.

For many people, its about enjoying the ride and getting hold of a life long dream...with the plan to keep the car for 5 to 10 years.

I understand though...no one wants to hear they paid too much for their ride....

[JEllis]

its a year old bimmer....not surprises here....and combine that with the "fuel crisis".......

[Sticky]

Enjoy the car for what it is, the money is gone, poof.

[asaulo1]

Originally Posted by Sticky

Enjoy the car for what it is, the money is gone, poof.

+1 We have the car so might as well enjoy it... I feel funny when I read this and that got their M3 for $500 over invoice or something... but when I step in my car and give it a whirl, all is forgotten.... Market ain't gonna change anytime soon so let's just all enjoy what we have..... CHeers.....

[J08M3]

If you're looking for a good investment, don't buy a car.

[HotLap]

That really doesn't sound like an unusual amount of depreciation. Last December I purchased a loaded 535i ($63.5K MSRP) and tried to trade it 7 mos later for an M3 Vert. It was in excellent shape with only 4500 miles and they still only wanted to give me $38K for it after going back and forth quite a bit with them. I think the real reason the M's you mention above have dropped more than usual (if they really have) is due to the slow economy...dealers are giving away the new 2008's right now and that has to drive down the price of the used ones as well. I just bought a new '08 M3 vert for $500 over invoice and got the 0.9% financing...I saved between $10K and $15K vs. if I had made the purchase in August when they 1st came out.....so your numbers don't really seem shocking to me.

The M is a sweet ride (that's why I just purchased one) but they too are subject to depreciation...perhaps even more as a % of MSRP than less expensive cars. If BMW was makeing them in limited numbers it would be a different story, but judging by the number of new 2008's still in the lots, that doesn't appear to be the case...

[jeremyr4]

I think everyone is missing the point I was trying to make. My goal here was to help those who are considering purchasing '08s right now by sharing my data so that they would know how much of a hit their '08 will take as they ride it off the lot because the '09s are out. You would want to weigh this against the benefits of 0.9% financing, free pass to M school, etc, to figure out whether it's worth it in terms of the bottom line. I think a lot of people aren't taking the '08 depreciation vs. '09 depreciation into account when they see 0.9% financing at the dealer.

In summary, be sure to take this into account if you're looking to buy an '08 right now. 0.9% and free M pass sound great but they might be negated by additional depreciation of buying an '08 vs. '09 right now...

Hope this helps,
Jeremy

[jaay11]

Originally Posted by jeremyr4

I think everyone is missing the point I was trying to make. My goal here was to help those who are considering purchasing '08s right now by sharing my data so that they would know how much of a hit their '08 will take as they ride it off the lot because the '09s are out. You would want to weigh this against the benefits of 0.9% financing, free pass to M school, etc, to figure out whether it's worth it in terms of the bottom line. I think a lot of people aren't taking the '08 depreciation vs. '09 depreciation into account when they see 0.9% financing at the dealer.

In summary, be sure to take this into account if you're looking to buy an '08 right now. 0.9% and free M pass sound great but they might be negated by additional depreciation of buying an '08 vs. '09 right now...

Hope this helps,
Jeremy

Got it....this is good advice/data.

[dmz]

If you can afford the M3 get it regardless of depreciation. What's the price of happiness?
That is why you work hard to make money so that you can enjoy it.

If money is an issue for you, then you can't affor an M3. get something cheaper and be happy.

[Big Windy]

Great time to buy a car IMO. Money in the market and in the banks is hardly earning interest. Many of my investments have depreciated more in one week than an M3 will depreciate in an entire year. The current economy has created some awesome incentives and deals on M3s...if you can afford it, now is the time to catch a great deal and then sell 4-6 years down the road when things are normal again and resale values have recovered.

That's just my take on it, though. We all come from different financial backgrounds.

[Pourky]

Jeremyr4..Do you have access to these auctions for the e92 M3s? Reason I ask is I am highly interested and would like to attend these auctions and hopefully purchase one which has the color, features, etc. I am looking for.

I'll even provide you with some nice compensation (cash) if I find the M3 I am looking for.

Please let me know, thank you!

[newtom3]

I can' t believe you are attributing the price drop to the 09's being out... there is this other HUGE elephant in the room called the economy crash. Just try and sell a car today... you can't sell it at almost any price... take it from me, I am trying on two cars... people are clutching cash like you wouldn't believe. I have reduced prices on my top end car, which I won't name but it's a rare collectable, about 33% and still it is not getting offers. My other vehicle is a truck and I can't give it away... and then there's the motorycle at 40% off the rest of market... can't get one bite.... very very unusual times.

[jeremyr4]

Originally Posted by newtom3

I can' t believe you are attributing the price drop to the 09's being out... there is this other HUGE elephant in the room called the economy crash. Just try and sell a car today... you can't sell it at almost any price... take it from me, I am trying on two cars... people are clutching cash like you wouldn't believe. I have reduced prices on my top end car, which I won't name but it's a rare collectable, about 33% and still it is not getting offers. My other vehicle is a truck and I can't give it away... and then there's the motorycle at 40% off the rest of market... can't get one bite.... very very unusual times.

We're actually both right. I used the M6 as an example of what the economy is doing but, realistically, both the model year change AND the economy are making it even worse, which is why I thought posting the data would be helpful... Fact is that cars usually take a hit around Aug/Sep once the new model years come out. That's just the way that it works, which is why it should be considering by anyone looking to buy an '08 at this point. It's not a theory I am making up - it's the way that the annual cyclicality works...

[jeremyr4]

Originally Posted by Pourky

Jeremyr4..Do you have access to these auctions for the e92 M3s? Reason I ask is I am highly interested and would like to attend these auctions and hopefully purchase one which has the color, features, etc. I am looking for.

I'll even provide you with some nice compensation (cash) if I find the M3 I am looking for.

Please let me know, thank you!

I apologize but I am not a dealer so I can't help you with the auctions. I have access (via a friend) to the auction data online but I can't go to an auction (without a dealer, at least). Good luck!

[newtom3]

Originally Posted by jeremyr4

We're actually both right. I used the M6 as an example of what the economy is doing but, realistically, both the model year change AND the economy are making it even worse, which is why I thought posting the data would be helpful... Fact is that cars usually take a hit around Aug/Sep once the new model years come out. That's just the way that it works, which is why it should be considering by anyone looking to buy an '08 at this point. It's not a theory I am making up - it's the way that the annual cyclicality works...

fully agree. I think this point in time, the more aggressive factor is the economy... I am betting that it's gonna get alot harder to move cars than in the history of most car sales people.

[jeremyr4]

Originally Posted by newtom3

fully agree. I think this point in time, the more aggressive factor is the economy... I am betting that it's gonna get alot harder to move cars than in the history of most car sales people.

It's already been a horrific year for these guys. I know a fleet manager pretty well at one of the local dealers in SoCal and it's clear that there's just nothing for them to do but sit around. All I can say is that the industry is VERY lucky that they structured leases the way they did so that they can guarantee new purchases every few years...

In the meantime, a lot of the manufacturers are cutting production for '09, just like BMW, so it will likely be harder to negotiate as good a deal as it is right now on new cars, as dealers will have less inventory sitting around that remains unsold. This is the prime time - right now and the for the next 2-3 months...

[footie]

In the UK I went on to the Autotrader website and in there you can buy '08 M3s for as little as £41K with decent spec, cars which when new would have retailed at £54K. Over here the Credit Crunch has hit as hard as the US.