BMW Garage BMW Meets Register Today's Posts
BMW M2 Forum > BMW M2 Discussions > Depreciation Estimates

Post Reply
 
Thread Tools Search this Thread
      05-31-2016, 07:10 AM   #1
ACZakka325i
Colonel
ACZakka325i's Avatar
278
Rep
2,008
Posts

Drives: 2 stroke
Join Date: Jul 2005
Location: CT

iTrader: (2)

Is it reasonable to assume one can purchase an M2, keep it clean and low mileage as a non-daily driver (2-5k miles/yr) and sell while recouping above average value in 1-2yrs time?

I'm not a flipper but I am not sure the M2 will be the car I keep forever. So there is some hesitation to purchase because timing is also not prefect for me personally, but if the proposition on its retained value is strong, I can convince myself. My dealer says I will be in the first batch of allocations in June, so I'm feeling a little bit of pressure.

Tough call as the car is so hot right now......
__________________
(Waitlist): #1 M2CSL
(Current): 2016 F15 X5 3.5xdrive - 2010 997.2 C4S Coupe
(Past): 2016 F30 340xi M-Sport -2013 535i xdrive
2008 E92 M3 - 2006 E90 325i
2002 E46 325xi - 1991 E30 325i
Appreciate 0
      05-31-2016, 07:29 AM   #2
allthatisntnow
Lieutenant
allthatisntnow's Avatar
United Kingdom
377
Rep
596
Posts

Drives: BMW M2C, 991 C2
Join Date: Sep 2014
Location: North East

iTrader: (0)

Probably get a little over 2/3rds what you paid for it in 2 years time. Will hold value better than an M3/4 id think. Ive found milage isn't actually much of an impact on car values outside of uber collectable limited run circles. Use it, enjoy it, get most of your money back.
Appreciate 0
      05-31-2016, 07:32 AM   #3
W///
Lieutenant General
W///'s Avatar
7494
Rep
12,310
Posts

Drives: F82GTS, E36/E92M3, Z4M
Join Date: Sep 2011
Location: SC

iTrader: (13)

Quote:
Originally Posted by ACZakka325i View Post
Is it reasonable to assume one can purchase an M2, keep it clean and low mileage as a non-daily driver (2-5k miles/yr) and sell while recouping above average value in 1-2yrs time?

I'm not a flipper but I am not sure the M2 will be the car I keep forever. So there is some hesitation to purchase because timing is also not prefect for me personally, but if the proposition on its retained value is strong, I can convince myself. My dealer says I will be in the first batch of allocations in June, so I'm feeling a little bit of pressure.

Tough call as the car is so hot right now......
Recouping above average? Probably. As good as the 1M? Definitely not.

Here's my opinion. Get the car because you want it, and don't worry too much about the value. Don't get it if you are unsure about whether it's the right car for you. That makes the ownership less fun.

Add to the fact that the timing doesn't work for you, I'd lean towards skipping IMHO.
__________________
Current:
16 F82 M4 GTS, Black Sapphire/Black, DCT
08 E92 M3, Sparkling Graphite/Bamboo Beige, 6MT
07 E85 Z4M Roadster, Alpine White/Red, 6MT
99 E36 M3, Techno Violet/Dove Grey, 6MT
Appreciate 0
      05-31-2016, 07:52 AM   #4
gmzanatta
Colonel
gmzanatta's Avatar
Canada
1823
Rep
2,948
Posts

Drives: LBB 6MT M2 # 660/713
Join Date: Feb 2016
Location: NB

iTrader: (0)

Quote:
Originally Posted by ACZakka325i View Post
Is it reasonable to assume one can purchase an M2, keep it clean and low mileage as a non-daily driver (2-5k miles/yr) and sell while recouping above average value in 1-2yrs time?

I'm not a flipper but I am not sure the M2 will be the car I keep forever. So there is some hesitation to purchase because timing is also not prefect for me personally, but if the proposition on its retained value is strong, I can convince myself. My dealer says I will be in the first batch of allocations in June, so I'm feeling a little bit of pressure.

Tough call as the car is so hot right now......
In short, yes. The M2 will have better than average resale value in 1 - 2 years time. What that value will be though is anybody's guess.

My personal opinion and gut feeling peg it at around 90 - 100% recouped in the next 12 months due to very limited supply and about 75 - 80% in two years.
Appreciate 1
      05-31-2016, 08:19 AM   #5
ACZakka325i
Colonel
ACZakka325i's Avatar
278
Rep
2,008
Posts

Drives: 2 stroke
Join Date: Jul 2005
Location: CT

iTrader: (2)

Quote:
Originally Posted by gmzanatta View Post
In short, yes. The M2 will have better than average resale value in 1 - 2 years time. What that value will be though is anybody's guess.

My personal opinion and gut feeling peg it at around 90 - 100% recouped in the next 12 months due to very limited supply and about 75 - 80% in two years.
Yes, this is what I am thinking. Demand will still exceed supply for the next 12mo and therefor I could potentially sell without taking a beating if plans change (for better OR worse). Seems relatively low-risk. This car will be a toy so it's hard to justify, no matter the timing. I would have to finance, so making payments without being 100% sure of the decision is less than comfy cozy.

Sometimes I think I want this car because so many other people do too. Wish I could see one in person or even drive one.
__________________
(Waitlist): #1 M2CSL
(Current): 2016 F15 X5 3.5xdrive - 2010 997.2 C4S Coupe
(Past): 2016 F30 340xi M-Sport -2013 535i xdrive
2008 E92 M3 - 2006 E90 325i
2002 E46 325xi - 1991 E30 325i

Last edited by ACZakka325i; 05-31-2016 at 08:26 AM..
Appreciate 0
      05-31-2016, 08:28 AM   #6
zenmaster
Brigadier General
United_States
1577
Rep
3,888
Posts

Drives: '17 M2
Join Date: Mar 2007
Location: Atlanta

iTrader: (1)

MY18 may see a B58 version w/ LCI?
Appreciate 0
      05-31-2016, 08:29 AM   #7
W///
Lieutenant General
W///'s Avatar
7494
Rep
12,310
Posts

Drives: F82GTS, E36/E92M3, Z4M
Join Date: Sep 2011
Location: SC

iTrader: (13)

Quote:
Originally Posted by zenmaster View Post
MY18 may see a B58 version w/ LCI?
No B58 in an M2, but the LCI will be a factor.
__________________
Current:
16 F82 M4 GTS, Black Sapphire/Black, DCT
08 E92 M3, Sparkling Graphite/Bamboo Beige, 6MT
07 E85 Z4M Roadster, Alpine White/Red, 6MT
99 E36 M3, Techno Violet/Dove Grey, 6MT
Appreciate 0
      05-31-2016, 08:32 AM   #8
firestarter2
Private First Class
68
Rep
129
Posts

Drives: NA
Join Date: May 2016
Location: NYC

iTrader: (0)

Value is a weird thing are you going to trade the car or private sale it? That makes a difference the amount of people who will or can finance a private sale car for 30k or 40k is small. So you can end up with a car worth more then you can sell it for.

On the M2 X factors like rarity(if it is) and tune ability will effect it.

What is LCI?
Appreciate 0
      05-31-2016, 09:31 AM   #9
ACZakka325i
Colonel
ACZakka325i's Avatar
278
Rep
2,008
Posts

Drives: 2 stroke
Join Date: Jul 2005
Location: CT

iTrader: (2)

Quote:
Originally Posted by firestarter2 View Post
Value is a weird thing are you going to trade the car or private sale it? That makes a difference the amount of people who will or can finance a private sale car for 30k or 40k is small. So you can end up with a car worth more then you can sell it for.

On the M2 X factors like rarity(if it is) and tune ability will effect it.

What is LCI?
LCI is Life Cycle Impulse. It is the mid-life refresh of the platform.
__________________
(Waitlist): #1 M2CSL
(Current): 2016 F15 X5 3.5xdrive - 2010 997.2 C4S Coupe
(Past): 2016 F30 340xi M-Sport -2013 535i xdrive
2008 E92 M3 - 2006 E90 325i
2002 E46 325xi - 1991 E30 325i
Appreciate 0
      05-31-2016, 09:48 AM   #10
Transfer
Major General
Transfer's Avatar
5254
Rep
5,874
Posts

Drives: Bronco Wildtrak, Tesla MYP
Join Date: Mar 2010
Location: Issaquah, WA

iTrader: (1)

If you want to pay minimally into the car and build equity in 1-2 years, I don't see that working out at all.

1) it's not a limited production car, demand is just high right now.
2) as mentioned, 2018 is an LCI and who knows how that will affect value.
3) the M240i is out MY2017 and that makes it much harder to justify M2.
Appreciate 0
      05-31-2016, 10:41 AM   #11
ACZakka325i
Colonel
ACZakka325i's Avatar
278
Rep
2,008
Posts

Drives: 2 stroke
Join Date: Jul 2005
Location: CT

iTrader: (2)

Quote:
Originally Posted by Transfer View Post
If you want to pay minimally into the car and build equity in 1-2 years, I don't see that working out at all.

1) it's not a limited production car, demand is just high right now.
2) as mentioned, 2018 is an LCI and who knows how that will affect value.
3) the M240i is out MY2017 and that makes it much harder to justify M2.
Good insight. Thank you for that.
__________________
(Waitlist): #1 M2CSL
(Current): 2016 F15 X5 3.5xdrive - 2010 997.2 C4S Coupe
(Past): 2016 F30 340xi M-Sport -2013 535i xdrive
2008 E92 M3 - 2006 E90 325i
2002 E46 325xi - 1991 E30 325i
Appreciate 0
      05-31-2016, 11:02 AM   #12
gmzanatta
Colonel
gmzanatta's Avatar
Canada
1823
Rep
2,948
Posts

Drives: LBB 6MT M2 # 660/713
Join Date: Feb 2016
Location: NB

iTrader: (0)

Quote:
Originally Posted by Transfer View Post
If you want to pay minimally into the car and build equity in 1-2 years, I don't see that working out at all.
1) it's not a limited production car, demand is just high right now.

This is incorrect. While production is not limited by hard numbers like the 1M, it is severely limited due to plant production capacity. So, yes, BMW will make the M2 for a few years, but it by no means is going to be easy to get or readily available.

2) as mentioned, 2018 is an LCI and who knows how that will affect value.

Agreed

3) the M240i is out MY2017 and that makes it much harder to justify M2.

I think this is a subjective point. Yes for most regular drivers the M240i is going to be plenty, but for those looking for a real drivers car, or even just the M badge to say you have an M, the M2 is still going to be a hot ticket item.

If anything though, the M240i is only going to further limit M2 production (BMW makes more money on those than M2, so easy to see which they would build more of), which in my opinion is going to lead to even less M2 depreciation.

Having owned a Z4MC, I think the M2 is closest to that car as far as limited production due to factory limitations and also rarity/depreciation.
Appreciate 2
      05-31-2016, 03:45 PM   #13
nachob
Brigadier General
United_States
2314
Rep
4,341
Posts

Drives: 2004 330i ZHP, 2022 Cayman T
Join Date: Apr 2008
Location: California

iTrader: (5)

Quote:
Originally Posted by W///
Quote:
Originally Posted by ACZakka325i View Post
Is it reasonable to assume one can purchase an M2, keep it clean and low mileage as a non-daily driver (2-5k miles/yr) and sell while recouping above average value in 1-2yrs time?

I'm not a flipper but I am not sure the M2 will be the car I keep forever. So there is some hesitation to purchase because timing is also not prefect for me personally, but if the proposition on its retained value is strong, I can convince myself. My dealer says I will be in the first batch of allocations in June, so I'm feeling a little bit of pressure.

Tough call as the car is so hot right now......
Recouping above average? Probably. As good as the 1M? Definitely not.

Here's my opinion. Get the car because you want it, and don't worry too much about the value. Don't get it if you are unsure about whether it's the right car for you. That makes the ownership less fun.

Add to the fact that the timing doesn't work for you, I'd lean towards skipping IMHO.
This guy said it best. You will see regular depreciation as soon as production ramps up. M235i s are all over now and they were hard to find originally. If you get lucky then maybe you can't count your blessings but the universe and history are not on your side. Buy it if you love it. If you lose money you still have something you love. If you buy something you don't love now you end up losing money AND stuck with something you don't love.
Appreciate 0
      05-31-2016, 04:05 PM   #14
Msmall143
Lieutenant
270
Rep
486
Posts

Drives: BMW M4, BMW S1000RR
Join Date: Mar 2016
Location: Loudon VA

iTrader: (0)

its a production car. its going to depreciate. If eveyone is so convinced its going to go up in value why arent they willing to pay a 3-5k dealer mark up. why aren't they buying multiples? i think sometimes it best to take a step back and realize the car was really just released 2 months ago and you cant predict the future. BMW can make adjustments to pump these out if they see fit. And they are in the business of selling cars not maintaining wait lists. they'll focus production to meet demand. if you cant afford avg depreciation dont buy the car. expect avg but hope for better (which i think it will be)
Appreciate 0
      05-31-2016, 05:04 PM   #15
technik330
Captain
289
Rep
666
Posts

Drives: STi
Join Date: Aug 2006
Location: Orange County

iTrader: (0)

Quote:
Originally Posted by gmzanatta View Post
1) it's not a limited production car, demand is just high right now.

This is incorrect. While production is not limited by hard numbers like the 1M, it is severely limited due to plant production capacity. So, yes, BMW will make the M2 for a few years, but it by no means is going to be easy to get or readily available.

2) as mentioned, 2018 is an LCI and who knows how that will affect value.

Agreed

3) the M240i is out MY2017 and that makes it much harder to justify M2.

I think this is a subjective point. Yes for most regular drivers the M240i is going to be plenty, but for those looking for a real drivers car, or even just the M badge to say you have an M, the M2 is still going to be a hot ticket item.

If anything though, the M240i is only going to further limit M2 production (BMW makes more money on those than M2, so easy to see which they would build more of), which in my opinion is going to lead to even less M2 depreciation.

Having owned a Z4MC, I think the M2 is closest to that car as far as limited production due to factory limitations and also rarity/depreciation.
The majority of your reply comes across as subjectively argumentative, setting the wave of assumptions aside.

The 240i could put a meaningful ding in to M2 sales, but how are we to know? I think the biggest threat to the M2 is actually the LCI M2, or possible M2 CSL/GTS (if it happens).

Claiming because "only X are able to be made" is a ridiculous argument. They'll make all they can sell and that's simply BMW for you. The 1M was unique and the M2 is brilliant, but not nearly as unique.

You can rage away and calculate all you want based on assumptions, but in the real world value comes from property and rarely from cars, at least in this price level.

If you've got old Ferraris, that's another convo, but these are M2s - relax and drive the damn car.
__________________
Technik 330 Past Projects:
'05 BMW 330Ci ZHP - Technik's ZHP *Sold*
'07 Subaru STI - *Sold*
'18 Subaru STi Type RA #350
'19 Honda Civic Type R #31191
Appreciate 0
      05-31-2016, 05:14 PM   #16
Tag
this is the way
Tag's Avatar
18155
Rep
8,527
Posts

Drives: N-1 starfighter
Join Date: Jan 2007
Location: Chicago

iTrader: (3)

Quote:
Originally Posted by ACZakka325i View Post
Is it reasonable to assume one can purchase an M2, keep it clean and low mileage as a non-daily driver (2-5k miles/yr) and sell while recouping above average value in 1-2yrs time?

I'm not a flipper but I am not sure the M2 will be the car I keep forever. So there is some hesitation to purchase because timing is also not prefect for me personally, but if the proposition on its retained value is strong, I can convince myself. My dealer says I will be in the first batch of allocations in June, so I'm feeling a little bit of pressure.

Tough call as the car is so hot right now......
Good luck getting one let alone worrying about resale!
Appreciate 0
      05-31-2016, 05:22 PM   #17
gmzanatta
Colonel
gmzanatta's Avatar
Canada
1823
Rep
2,948
Posts

Drives: LBB 6MT M2 # 660/713
Join Date: Feb 2016
Location: NB

iTrader: (0)

Quote:
Originally Posted by technik330
Quote:
Originally Posted by gmzanatta View Post
1) it's not a limited production car, demand is just high right now.

This is incorrect. While production is not limited by hard numbers like the 1M, it is severely limited due to plant production capacity. So, yes, BMW will make the M2 for a few years, but it by no means is going to be easy to get or readily available.

2) as mentioned, 2018 is an LCI and who knows how that will affect value.

Agreed

3) the M240i is out MY2017 and that makes it much harder to justify M2.

I think this is a subjective point. Yes for most regular drivers the M240i is going to be plenty, but for those looking for a real drivers car, or even just the M badge to say you have an M, the M2 is still going to be a hot ticket item.

If anything though, the M240i is only going to further limit M2 production (BMW makes more money on those than M2, so easy to see which they would build more of), which in my opinion is going to lead to even less M2 depreciation.

Having owned a Z4MC, I think the M2 is closest to that car as far as limited production due to factory limitations and also rarity/depreciation.
The majority of your reply comes across as subjectively argumentative, setting the wave of assumptions aside.

The 240i could put a meaningful ding in to M2 sales, but how are we to know? I think the biggest threat to the M2 is actually the LCI M2, or possible M2 CSL/GTS (if it happens).

Claiming because "only X are able to be made" is a ridiculous argument. They'll make all they can sell and that's simply BMW for you. The 1M was unique and the M2 is brilliant, but not nearly as unique.

You can rage away and calculate all you want based on assumptions, but in the real world value comes from property and rarely from cars, at least in this price level.

If you've got old Ferraris, that's another convo, but these are M2s - relax and drive the damn car.
I do literally say it is a "subjective point" in my post above

And yes they will make as many as they can, but that doesn't mean it's a whole lot of them.

And I will drive the car, should be here mid-July
Appreciate 0
      05-31-2016, 07:40 PM   #18
zenmaster
Brigadier General
United_States
1577
Rep
3,888
Posts

Drives: '17 M2
Join Date: Mar 2007
Location: Atlanta

iTrader: (1)

Quote:
Originally Posted by W/// View Post
No B58 in an M2, but the LCI will be a factor.
That may be the case, but the M3/M4 should be getting a large power increase w/ new engine tech. Perhaps the MY18 M2 would see a bump.
Appreciate 0
      05-31-2016, 09:06 PM   #19
ACZakka325i
Colonel
ACZakka325i's Avatar
278
Rep
2,008
Posts

Drives: 2 stroke
Join Date: Jul 2005
Location: CT

iTrader: (2)

Quote:
Originally Posted by Tag View Post
Good luck getting one let alone worrying about resale!
I posed the question because I have the first allocation at my dealer. It's time to sh!t or get off the pot.
__________________
(Waitlist): #1 M2CSL
(Current): 2016 F15 X5 3.5xdrive - 2010 997.2 C4S Coupe
(Past): 2016 F30 340xi M-Sport -2013 535i xdrive
2008 E92 M3 - 2006 E90 325i
2002 E46 325xi - 1991 E30 325i
Appreciate 0
      06-01-2016, 12:23 AM   #20
nachob
Brigadier General
United_States
2314
Rep
4,341
Posts

Drives: 2004 330i ZHP, 2022 Cayman T
Join Date: Apr 2008
Location: California

iTrader: (5)

Quote:
Originally Posted by ACZakka325i View Post
I posed the question because I have the first allocation at my dealer. It's time to sh!t or get off the pot.
If you are having doubts, get off the pot. There will be more later, for less money. You might feel certain later but really, if you have to ask, it's not right for you at this time. Follow your gutt. I can hear your gutt all the way here in California and it's saying to wait for something better!

Best wishes!
Appreciate 0
      06-01-2016, 01:57 AM   #21
pruettfan
Brigadier General
1622
Rep
3,402
Posts

Drives: 2017 M2, LBB, DCT, Exec
Join Date: Jul 2009
Location: Chandler, AZ

iTrader: (0)

OP, I have no idea what average depreciation is. Average depreciation for a Honda Accord and depreciation for a niche sports coupe are two very different things. I would love to believe that my car won't depreciate terribly but I know that isn't likely. As stated above this isn't going to be a rare car like for example the 1M. Mileage these days is not nearly as important as it was years ago because cars can last so many miles but M cars and sports cars in general are more sensitive to miles than lets say a Honda or Toyota. Condition is hugely important if you want to sell for top dollar and as stated above selling it private party is much much better than trading in. Having said that if your concerned about depreciation you should buy a Subaru or Honda. I bought my 3 series for 52% of MSRP 3 years old with 40,000 miles on it. I am pretty sure the M2 will depreciate at least at that rate. Again I hope it doesn't but that would be going against everything I know about depreciation.

Also, if the timing isn't right don't do it. No reason to put yourself in a bind. The M2 will be around for several years, it may be best to wait until things are going better for you.
Appreciate 0
Post Reply

Bookmarks


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 12:57 AM.




m2
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST