Plummeting Values?

[churchwa]

Hi guys, i was just wondering why so many people seem to be buying new 3's.

Don't get me wrong, they are great cars, but it just seems like throwing money away given the new one is out in 3-4 months.

I went to BMW dealer the other day to ask about M Coupes and inevitably got talking about M3's and he said to me that the biggest mistake i could make was to buy a 3 series becasue he said prics would plummet massivly when the new one come out. (I think he opened up to me because i said that i used to be a car dealer) That included, in his eyes, second hand ones as well.

I would love to get an M3 in dark grey, it has always been a dream of mine, but i could not warrent the massive loss of money, hence the coupe.

I know cars loose value no matter what you do, but there is a right time and a wrong time to buy them and this has to be considered the wrong time to buy a 3?

Please tell me if i am missing something, but i think BigFas knows what i am saying. (I love the 5 mate)

[BigFas]

E46 prices are in free-fall. Your dealer was extremely honest. Many dealers are still tempting folk with new M3's saying that only the saloon is out next year, then a year after it'll be the coupe and convertible and a year after that, the M derivative will be out saying that an M3 will still be "current" for a couple more years. However, your dealer, and mine actually, have said, if you REALLY want an e46 m3, wait until April when the e90 is launched, then you will have the best price of an M3 ever. They've even started to load them up with a stack of options in anticipation of getting rid of current stocks, exactly what they did to the e39 5 series.

One major problem with the e46 m3 is that it will never be regarded as a classic, in the way the e30 and even e36 were.

The only reason I want to get rid of mine at the moment is that there is a good chance of getting some money out of it still and use it as a deposit on another car, and at the same time, get something a little more family oriented.

[mattj]

the new 3 is out very soon but only in 5 door guise. the coupe/cabs are not out for a while and the new m3 coupe/cab is not scheduled untill late 2006/early2007 so the m versions of the e46 should hold there value for at least the next couple of years as they are not being phased out untill production of the e90 m3 begins.as well as this the m versions have traditonaly held there value better.

i asked my self the same question before buying my m3 but decided to go for it because its the car ive wanted for a long time.

depriciation hits different models better or worst, for example a workmate of mine bought a new shape 545i 11 months ago(its done 12k now) and its now been valued at 33 grand which after he paid nearly 49 for it.

the other way to look at it is if there losing so much money theres going to be some amazing deals going on new e46's!

[Faisal]

As with most things, the longer you wait, the more the price will drop. But it's always a trade-off between how long you're willing to wait, to how much money you'll save. We could all wait 15 years and pick up an E46 M3 for about £2k :rolleyes:

I think E46's are taking a big price hit anyway, so the fact the E90 is coming out probably won't deter those people who want one right now.

My personal opinion is that you can probably get a better deal right now just before Christmas, than you could come Summer time - even with the release of the E90.

[churchwa]

Faisal,

You would get a better deal next summer on a 2nd hand E46 because second hand cars dont count in yearly sales. (i was a dealer).

All you guys seem to be kidding yourselves and falling for the oldest tricks in the book.

If i am being honest there is really no way on earth that now is a good time to buy an E46 of any variety. Tust me coupe or 4 door it makes no difference.

[Faisal]

> on a 2nd hand E46 because second hand cars dont count in yearly sales

You sure ? My last car was a second hand 328Ci from Sytner. And the salesman was desperate to sell it to me -- gave me practically everything I asked for.

Im pretty sure he was trying to hit some target with it.

[ANT MAN]

The old five series didn't fall like people said it would as the new shape hasn't really caught the public's eye. Some would say it's hideous. I think the same will happen with the E46. If you buy a nice model and look after it, you'll be OK.

If you can afford to buy new it's nice. You get a motor that nobody else has driven, it 100% perfect and you can spec it how you want.

I looked for over a year and couldn't find the car I wanted and aren't too fussed about prices falling because I'll be getting the car I really, really want. :)

[churchwa]

Most 2nd hand cars are put on finance by the dealer, you normally get about 60day interest free and then you have to pay interest, so sometime you have to shift 2nd hand cars quick so you dont end up paying loads of interest.

The reason places like Hexagon are so expensive (look at their Z3M Coupes) is because they are independant and they buy all thier 2nd hand cars so they dont pay intrest unlike most dealers.

All they have to deal with is the depreciation on their 2nd hand cars.

[peppernick]

Brand new M3 CSL in Silver Grey, 28 miles. Sitting in the Scotthall showroom for yonks, they are willing to let it go at £48,000.........£12k off list!

[330ciSport]

The CSL has struggled. A couple of months ago BMW offered certain dealers an extra supply of Mini's if they could shift at least 2 CSL's. I know of two that walked out the door with delivery miles and a full spec for £44k.

[Mits]

As a dark grey M3 owner :D prices for the 3 will start to fall, but this is true for all cars when a new model is due.

I personally don't think its a good idea to buy new M3, but there are some second hand bargains out there. I bought my last M3 Cab a year after it came out and then swapped to a coupe this year.

I'll keep my current car for the next 3/4 yrs by which time i'll get another 1 yr old M3. You can expect around 5k a year depreciation, so I try and keep mine for a 4/5yrs.

[peppernick]

As a dark grey M3 owner :D prices for the 3 will start to fall, but this is true for all cars when a new model is due.

I personally don't think its a good idea to buy new M3, but there are some second hand bargains out there. I bought my last M3 Cab a year after it came out and then swapped to a coupe this year.

I'll keep my current car for the next 3/4 yrs by which time i'll get another 1 yr old M3. You can expect around 5k a year depreciation, so I try and keep mine for a 4/5yrs.

You can't go wrong with an accountant's view ;)