E92 M3 potential future classic?

[Obioban]

If you want a chance of meaningful appreciation, you should get the following spec:
-6mt
-no iDrive
-no sunroof
-not a vert
-in an exterior color (not white/black/grey/silver)
-interesting interior color (not black or grey)
-LOW mileage. The cars that pull the mega dollars are very low mileage. The $185,000 e39 M5 recently was <100 miles. I'd say there's basically 5 mileage categories:
<100 miles
<10,000 miles
<50,000 miles
<100,000 miles
>100,000 miles

If you're looking to not spend near new money, but have some appreciation, I'd start with category 3 and keep it in category 3 (sub 50,000 miles). Once cars get over ~100,000 miles, they're unlikely to every meaningfully appreciate, unless they're crazy rare (which the M3 isn't).

I'm not saying you need all of the above. But, IMO (based on the e36 and e46), those will be the factors that increase value, and a car with all of the above and low mileage will likely significantly appreciate...

... unless the transition to EVs happens quickly, resulting in gas stations going away, making ICE cars a PITA to drive, which will likely destroy all ICE car values other than the rarest of the rare.

[buddalun]

Originally Posted by kgroschi

It's a car to own forever. It will at least hold it's value if you maintain it - guaranteed.

Where have you been? No more vids?

['ringmeister]

I agree with Obioban, and would add cloth interior to the desirable interior category. It brings a premium for e46 m3s.

[xcusem3]

Originally Posted by Obioban

If you want a chance of meaningful appreciation, you should get the following spec:
-6mt
-no iDrive
-no sunroof
-not a vert
-in an exterior color (not white/black/grey/silver)
-interesting interior color (not black or grey)
-LOW mileage. The cars that pull the mega dollars are very low mileage. The $185,000 e39 M5 recently was <100 miles. I'd say there's basically 5 mileage categories:
<100 miles
<10,000 miles
<50,000 miles
<100,000 miles
>100,000 miles

If you're looking to not spend near new money, but have some appreciation, I'd start with category 3 and keep it in category 3 (sub 50,000 miles). Once cars get over ~100,000 miles, they're unlikely to every meaningfully appreciate, unless they're crazy rare (which the M3 isn't).

I'm not saying you need all of the above. But, IMO (based on the e36 and e46), those will be the factors that increase value, and a car with all of the above and low mileage will likely significantly appreciate...

... unless the transition to EVs happens quickly, resulting in gas stations going away, making ICE cars a PITA to drive, which will likely destroy all ICE car values other than the rarest of the rare.

Some points are correct but there will also be a strong market for late model individual or special edition cars as well. idrive will have no impact on price and may actually be preferred due to additional m button configuration

[fatalelement]

Originally Posted by xcusem3

Some points are correct but there will also be a strong market for late model individual or special edition cars as well. idrive will have no impact on price and may actually be preferred due to additional m button configuration

Also, the reality is, if you can't go out and throw down $40k in cash today without any sort of financing or consideration on the car, it's a horrible investment compared to your other options. Huge risk, large physical asset that can be destroyed or damaged at any time when you drive it (and if it has any serious accident, it's no longer going to be a high-value collector's car). Buying any car as an investment is silly unless you have enough money that this is being bought with entirely disposable income.

I think we all like the fantasy that it's a great financial decision to buy whatever car we buy, but that should really not be a consideration when buying a car.

It will undoubtedly be a classic from a car enthusiast standpoint (it already is), but I think we're living a dangerous fantasy trying to turn this into a defensible financial asset. Although, in fairness, OP has recognized that it's ridiculous to expect profit.

I think the reality is if you are only driving 1k a year, you probably can cover that limited depreciation if you take car of the car well, but once you factor in maintenance and insurance, you're probably gonna be SOL. In addition, you have to consider time value of money. Spending 30k to get 30k in 3 years is not "free", it's a very measurable loss.

[cjm41]

Originally Posted by fatalelement

Also, the reality is, if you can't go out and throw down $40k in cash today without any sort of financing or consideration on the car, it's a horrible investment compared to your other options. Huge risk, large physical asset that can be destroyed or damaged at any time when you drive it (and if it has any serious accident, it's no longer going to be a high-value collector's car). Buying any car as an investment is silly unless you have enough money that this is being bought with entirely disposable income.

I think we all like the fantasy that it's a great financial decision to buy whatever car we buy, but that should really not be a consideration when buying a car.

It will undoubtedly be a classic from a car enthusiast standpoint (it already is), but I think we're living a dangerous fantasy trying to turn this into a defensible financial asset. Although, in fairness, OP has recognized that it's ridiculous to expect profit.

I think the reality is if you are only driving 1k a year, you probably can cover that limited depreciation if you take car of the car well, but once you factor in maintenance and insurance, you're probably gonna be SOL. In addition, you have to consider time value of money. Spending 30k to get 30k in 3 years is not "free", it's a very measurable loss.

I think, for me, it was a challenge buying an 8 year old used car for $26k a few months ago. Ultimately, if I need to sell the car in a couple years for any reason (I do have the title on-hand), I can do so without a major hit. Even selling the car for 20-22k in a few years with 85k miles on it, which is well within reason based on how the market has slowed, I still got to drive a pretty special car for a while while losing a pretty small amount of money. It's important to keep in mind, any E9x with a solid engine and tranny is worth probably $12k alone in just those parts, at a minimum. There aren't many cars with used $8k engines sitting in them that also have a demand (sometimes it's important to remember that the very fact more were produced and they have rod bearing issues but are still desirable actually creates a lot of value for someone parting out).

I do think the people buying excellent examples in the 22k-30k range right now will be well positioned to unload the car for close to what they paid for it if they keep it in excellent condition and don't commute daily in it.

I will say this, I'm $3k into repairs, about to spend $2500 more on RBs, I'll never ever see my money again, but it's nice to know I could still unload the car and pocket a down payment for a house. There aren't a lot of useful, exciting automobiles that can essentially be enjoyed and unloaded down the road with a minimal hit to the pocket.

[fatalelement]

Originally Posted by cjm41

I think, for me, it was a challenge buying an 8 year old used car for $26k a few months ago. Ultimately, if I need to sell the car in a couple years for any reason (I do have the title on-hand), I can do so without a major hit. Even selling the car for 20-22k in a few years with 85k miles on it, which is well within reason based on how the market has slowed, I still got to drive a pretty special car for a while while losing a pretty small amount of money. It's important to keep in mind, any E9x with a solid engine and tranny is worth probably $12k alone in just those parts, at a minimum. There aren't many cars with used $8k engines sitting in them that also have a demand (sometimes it's important to remember that the very fact more were produced and they have rod bearing issues but are still desirable actually creates a lot of value for someone parting out).

I do think the people buying excellent examples in the 22k-30k range right now will be well positioned to unload the car for close to what they paid for it if they keep it in excellent condition and don't commute daily in it.

I will say this, I'm $3k into repairs, about to spend $2500 more on RBs, I'll never ever see my money again, but it's nice to know I could still unload the car and pocket a down payment for a house. There aren't a lot of useful, exciting automobiles that can essentially be enjoyed and unloaded down the road with a minimal hit to the pocket.

Sure - I get what you're saying, I'm just trying to remind people that if you put 30k away, get a minimal use out of it (i.e. sub 5000 miles a year, which is, in my mind, a gigantic waste of money), and then even at BEST get exactly what you paid for it back in a few years, you've lost thousands and thousands of dollars. It's always important to remember that 30k now, wisely utilized, is worth a couple grand a year in appreciation, interest, etc.

That being said, I live in CA so I have great roads and weather so I can drive a few hundred miles per week for pleasure with almost no traffic on mountain roads. I get that in most of the country this is not possible. Where I live, owning a car to commute is idiotic, so if you're going to spend money on it, you should do it to drive it rather than get any other utility from it.

You're right about this car having a price floor - which is unusual and nice. Even if you total it, as long as the engine is OK (transmission isn't worth that much, less than 2 grand), you have enough for a 30% down payment on a new M3.

P.S. I am jealous that this car is, where you live, the down payment on a house. Don't ever come to CA, the down payment on my studio apartment on the ground floor in a warehouse district on the edge of the city is $150k.

[Transfer]

Yeah this car is no investment. No matter what you'll lose money but if you drive it and maintain it then it makes it all worthwhile.

[kgroschi]

Originally Posted by buddalun

Where have you been? No more vids?

Yeah there are still vids! Posted one yesterday! Thanks for asking