[64-bit]

Today, I was thinking... How awesome would be driving an M4 instead of my 335i, but what kind of price do you pay for such car in reality?

So I did a quick search on cars.com and I came to realize that, historic in 3 years from now, I will loose 13K in depreciation on my 335i in comparison to 30K that I would loose with a 2010 / 2011 same mileage M3.

Just insane... In my opinion you have to be single or rich to do not care about that kind of money.

[SamS]

Originally Posted by 64-bit

Just insane... In my opinion you have to be single or rich to do not care about that kind of money.

Yet the other opinion holds that someone else "values" the depreciated money far more than you. E.g, it is worth all of that depreciation to enjoy being the person who has personally picked out every single option/color/combo, to sit in the car with 1 mile on the odometer and let your senses soak in that new-car-smell. Or, some of us simply don't feel like paying $30K for a used car to sit where someone else has been farting for the past 3 years

And, if you don't have folks like me who buy "new" cars every few years, you simply would not have those 2-4 year old "almost new" cars to buy for yourself second-hand.

[KneeDragr]

I think you will lose more on that 335i, otherwise you could get a lease for ~400$ a month.

[crono06]

I don't think the op is comparing buying new vs old. I think he's comparing 335 vs M3 depreciation - Am I correct?

It's generally expected that an M/AMG/RS car will depreciate at an accelerated rate. They are not meant for the mass market and likely a bit more difficult to sell than your run of the mill 328/335.

[tboooe]

Originally Posted by SamS

Yet the other opinion holds that someone else "values" the depreciated money far more than you. E.g, it is worth all of that depreciation to enjoy being the person who has personally picked out every single option/color/combo, to sit in the car with 1 mile on the odometer and let your senses soak in that new-car-smell. Or, some of us simply don't feel like paying $30K for a used car to sit where someone else has been farting for the past 3 years

And, if you don't have folks like me who buy "new" cars every few years, you simply would not have those 2-4 year old "almost new" cars to buy for yourself second-hand.

Totally agree. Every financial decision is simply not financial. There are other non qualitative factors involved that do have value (oxymoronic I know) which have to be taken into account. Also, I dont like the idea of others farting in my car either!!!

[64-bit]

Originally Posted by crono06

I don't think the op is comparing buying new vs old. I think he's comparing 335 vs M3 depreciation - Am I correct?

It's generally expected that an M/AMG/RS car will depreciate at an accelerated rate. They are not meant for the mass market and likely a bit more difficult to sell than your run of the mill 328/335.

That is correct, I'm comparing the depreciation of both cars in 3 years from now, the 335i is already bad, but he M3 depreciation is INSANE!

Try to buy a 335i, MSport with PPK in 3 years for half of its price... IMPOSSIBLE.

[USC2000]

Buying cars is never a good financial decision. Just buy the car that you want and can afford.

[300hp]

As someone with 2 kids I have pondered on this question as well and it still haunts me everyday. M3 or 335i. I can downgrade my X5 to an X3 and free up cash for an M3/4 upgrade for my 335i.

My logic for not doing this are:
- X5 looks way better than X3 and I generally am not willing to give up the X5/6 platform. After seeing the X6 in person multiple times I am falling in love with it more and more.
-335i is enough car for me
-M3/4 is to me at least twice as much car as the 335i, sound, interior, performance, exterior etc. with very little track experience and no plans to ramp that up I feel it's too much car for me. Love it yes and admire it every time I see it but I am not there yet. Nothing seems to be working to push me over that edge

We all come up with our own rationalization of why not to buy the M3/4. Those are my rationalizations but I can't rationalize using residual values and everyday I tell myself I am stupid for not making the jump

I am with Chris here, that's what life is about, listen to the part where he explains how much he is spending on this car. He became my own personal hero at that stage

[34.50]

Originally Posted by 64-bit

Try to buy a 335i, MSport with PPK in 3 years for half of its price... IMPOSSIBLE.

A quick search reveals that you can get a 2012 335i for about 26-42k, within 250 miles of my area. With a base price of 43k (when new in 2012), it's somewhat close to half. These cars do depreciate fast, but AMG/M/RS do depreciate much faster. I had a '07 MB CLS 63 I bought for in 2011, that was cheaper than a fully optioned Accord. The original sticker on that car was scary expensive - enough to buy a house in my neck of the woods.

Cars are not good proposition values - I buy fun cars because I consider myself an enthusiast. If I didn't care about them, I'd be in a Econocar (not saying that in a negative context). If you like cars and can afford it, go for it.

[tboooe]

Originally Posted by 300hp

I am with Chris here, that's what life is about, listen to the part where he explains how much he is spending on this car. He became my own personal hero at that stage

Great video and my sentiments exactly! Yes you gotta be financially responsible but you also have to live as well! I love Chris Harris!

[Technic]

Originally Posted by SamS

Yet the other opinion holds that someone else "values" the depreciated money far more than you. E.g, it is worth all of that depreciation to enjoy being the person who has personally picked out every single option/color/combo, to sit in the car with 1 mile on the odometer and let your senses soak in that new-car-smell. Or, some of us simply don't feel like paying $30K for a used car to sit where someone else has been farting for the past 3 years

And, if you don't have folks like me who buy "new" cars every few years, you simply would not have those 2-4 year old "almost new" cars to buy for yourself second-hand.

Exactly.

[dreamspeed]

The "cost" is all relative. What is expensive to one person could be cheap to another.

[puma1552]

There's no way you will only lose $13k after 3 years on that $50k-$60k 335i, considering I could go buy a brand new one today for $8k off sticker price, then turn around tomorrow and trade it right back in and lose $5k. That's $13k right there.

As for the depreciation, there comes a certain price point above which virtually NO cars hold good value in terms of absolute dollar. You can buy a $120k SL500 and in three years it will be selling for $70k-$80k. Cars in a certain stratosphere of price just don't hold value because nobody that can afford $100k-$110k for a lightly used one can't afford $120k for the new one - the cars simply won't sell at prices that are still astronomical for a used car even if it's still a good savings over new, so they have to sink in value enough for another demographic to be able to afford them.

[alienranch]

No way in hell you'll just be out $13K in three years. I have a fairly loaded '12 335i with 42K and it's already lost close to $25K, having a private party price of $32K.

[GMe90]

That depreciation hit only becomes real when and if you sell the car. If you buy the M3 and keep it for a long time, which makes sense when you are buying an M car, you are not really taking that depreciation hit.

[300hp]

Originally Posted by tboooe

Great video and my sentiments exactly! Yes you gotta be financially responsible but you also have to live as well! I love Chris Harris!

If I were given an option to become Chris Harris for a week or become a Porn Star for the same period, I will take Chris Harris

[puma1552]

The other thing to consider too with the M, is that does the price really matter when it's a lease like 90% of them?

It's like when you see someone with a reliability issue get steaming mad about having "spent" $80k for an X5 or whatever and demanding exceptional treatment when it's really just a lease. If you're buying, and shelling out the buy payment instead of the deflated lease payment, then the depreciation is another story but as long as people are just leasing because everyone's deathly afraid of owning the car out of warranty, it doesn't seem quite as bad.

[Golden Arrow]

Originally Posted by crono06

I don't think the op is comparing buying new vs old. I think he's comparing 335 vs M3 depreciation - Am I correct?

It's generally expected that an M/AMG/RS car will depreciate at an accelerated rate. They are not meant for the mass market and likely a bit more difficult to sell than your run of the mill 328/335.

I'd much prefer a "run of the mill" 335i with all the option boxes checked, than a base M3. Unless you can afford to fully spec an M-Car, stick with the regular car.

[XenaBimmer]

Cars are not investments, buy what you can afford and what moves you emotionally (since we're all on this forum, I think we can assume that cars are much more than transportation for us) and don't worry about depreciation.
If you want to buy and not lease (I prefer lease to change to something new every few years), then you're best to get a 2-3 year old CPO BMW, that way the previous owner has taken the largest hit on depreciation.
Also, to compare dollar amounts of depreciation from one car that's much more expensive than another is incorrect since they're not proportional; you need to talk about % of depreciation.

[Labeef]

Originally Posted by dreamspeed

The "cost" is all relative. What is expensive to one person could be cheap to another.

I agree. The more you spend the more you loose. Unless you are buying a collector Ferrari or any other historic car.

This is why leasing is the way to go with BMW's or any other high end vehicles. If you are good at negotiating and get in on the right program, you send less than depreciation.

On another note, BMW's are getting pretty expensive and the used car market is getting flooded with cars. I wonder how BMW's residual value hold up with over the next couple of years. What happens down the line, when they can't keep the residual high? The monthly rates will shoot through the roof and you'll be sub-prime.

[puma1552]

Originally Posted by XenaBimmer

Also, to compare dollar amounts of depreciation from one car that's much more expensive than another is incorrect since they're not proportional; you need to talk about % of depreciation.

While 99% of the time I'd agree with you, in this case I'd look at absolute dollars lost - losing 30% on a $15k car is a lot less painful than losing 30% on a $120k car, regardless of your income level.

[onatuesday]

If you plan to only keep the car for 3 years you'd be insane to buy it instead of leasing it (depending on the state you live in)