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      02-04-2016, 10:29 AM   #1
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Anticipated private sales depreciation?

So I am definitely set on the M2 as my next car and am working on the financials. I am planning on buying mid 2017 and that leaves me with 2 options. Go ED and attempt to find a deal closest to ED invoice (maybe around $48500-49000 + tax+awesome experience in Europe) or wait for the first batch of private sales and not have to pay taxes (yay AZ). So what do you guys think the private sales values will be for those who short live their cars by summer of 2017?
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      02-04-2016, 10:50 AM   #2
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My guess would be 15% depreciation over first year + mileage if significant.
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      02-04-2016, 10:59 AM   #3
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Quote:
Originally Posted by synergist View Post
So I am definitely set on the M2 as my next car and am working on the financials. I am planning on buying mid 2017 and that leaves me with 2 options. Go ED and attempt to find a deal closest to ED invoice (maybe around $48500-49000 + tax+awesome experience in Europe) or wait for the first batch of private sales and not have to pay taxes (yay AZ). So what do you guys think the private sales values will be for those who short live their cars by summer of 2017?
You wont see any in the 1st year. There will be a lot of people who bought them at have them for sale over msrp. In year two you might see a little. Your best bet will be the ED discount. Year three will be when there are enough of them to merit some price drops. From what I've read in here all the AZ cars are going for 5k over right now.
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      02-04-2016, 11:00 AM   #4
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So this would be the first car I purchase new and mitigating some of the initial depreciation would be nice. So if I could pick one up for $43k with 5-10k miles then that may be the route I take.
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      02-04-2016, 11:01 AM   #5
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Originally Posted by cole3488 View Post
You wont see any in the 1st year. There will be a lot of people who bought them at have them for sale over msrp. In year two you might see a little. Your best bet will be the ED discount. Year three will be when there are enough of them to merit some price drops. From what I've read in here all the AZ cars are going for 5k over right now.
This.
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      02-04-2016, 11:04 AM   #6
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Quote:
Originally Posted by cole3488 View Post
You wont see any in the 1st year. There will be a lot of people who bought them at have them for sale over msrp. In year two you might see a little. Your best bet will be the ED discount. Year three will be when there are enough of them to merit some price drops. From what I've read in here all the AZ cars are going for 5k over right now.
This is what I thought might be the case. I guess it is highly dependable on what the prices are at dealerships at the time. If people can buy M2s slightly above invoice at the dealer then it would be stupid to pay more on used ones.
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      02-04-2016, 11:16 AM   #7
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Originally Posted by synergist View Post
So this would be the first car I purchase new and mitigating some of the initial depreciation would be nice. So if I could pick one up for $43k with 5-10k miles then that may be the route I take.
not going to happen at 43. 9k from purchase price is crazy. This would take 3-4 years and have to have crazy miles.
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      02-04-2016, 01:19 PM   #8
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Originally Posted by cole3488 View Post
not going to happen at 43. 9k from purchase price is crazy. This would take 3-4 years and have to have crazy miles.
ummmm no, maybe not in a year but definitely 2. That about 15% depreciation... how much do you think cars depreciate? Take a look at the M3/4 sales. Anyone even close to asking for MSRP gets laughed at.
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      02-04-2016, 01:27 PM   #9
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Originally Posted by cole3488 View Post
not going to happen at 43. 9k from purchase price is crazy. This would take 3-4 years and have to have crazy miles.
I think if you could do ED in about 2 or 3 years you might get about 11% max off of US MSRP, that would probably be your best deal unless one was sitting on the lot for a year, which ain't going to happen. As far as used cars go, the M2 is a new model so nobody knows how that will pan out. I doubt there will be any good deals for a few years, in this case like the previous poster said, it would be better to go ED if you want the best price.
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      02-04-2016, 01:43 PM   #10
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Originally Posted by synergist View Post
ummmm no, maybe not in a year but definitely 2. That about 15% depreciation... how much do you think cars depreciate? Take a look at the M3/4 sales. Anyone even close to asking for MSRP gets laughed at.
This is why I didn't buy my m3 new. But things will be a little different for the m2. Even though its not a one year 700 car like the 1m there is a lot of anticipation for it. This is the reason that I am buying this car new because the waitlist are big and most likely going to take it through mid 17 after that the price might move. The price will be at msrp or ed msrp until then. Why wait two years to get a small discount on a car that you can get at a great price right now. A fully loaded 235 w the dif is more than the m2 which is insane. I believe this to be one of the best overall price for what you get bmw's ever.
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      02-04-2016, 02:23 PM   #11
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Quote:
Originally Posted by synergist
Quote:
Originally Posted by cole3488 View Post
not going to happen at 43. 9k from purchase price is crazy. This would take 3-4 years and have to have crazy miles.
ummmm no, maybe not in a year but definitely 2. That about 15% depreciation... how much do you think cars depreciate? Take a look at the M3/4 sales. Anyone even close to asking for MSRP gets laughed at.
Pls, you cant compare the M3/M4 with the M2 in terms of finance and production.
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      02-04-2016, 02:32 PM   #12
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Quote:
Originally Posted by Makman View Post
Pls, you cant compare the M3/M4 with the M2 in terms of finance and production.
At least not in the first couple years of its production, anyway.
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      02-04-2016, 05:42 PM   #13
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Originally Posted by Makman View Post
Pls, you cant compare the M3/M4 with the M2 in terms of finance and production.
While it's true the M2 won't see the same production numbers as its big brothers it also won't have the same demand. This group on the forums is not an accurate representation of BMW M buyers as a whole. Some may want the M2 over the M3/4 but most want the amenities the M2 does not offer (moon roof, CF roof, different interior options, more color options, HUD, more power from the factory, ect.) The major thing going for the M2 is the pricing.You also have to take into consideration that the used M3/4s will be around the same price as a new M2 at the time, so many spending around the $50-55K may find more value going that route. Worst comes to worst I will go ED, but if it is relatively easy to pick up an M2 for less than MSRP more than a year after its initiation then its safe to say private sales will adjust appropriately. So really comes down to how easy it will be to buy one new, guess we will find out.
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      02-04-2016, 05:49 PM   #14
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Quote:
Originally Posted by synergist View Post
While it's true the M2 won't see the same production numbers as its big brothers it also won't have the same demand. This group on the forums is not an accurate representation of BMW M buyers as a whole. Some may want the M2 over the M3/4 but most want the amenities the M2 does not offer (moon roof, CF roof, different interior options, more color options, HUD, more power from the factory, ect.) The major thing going for the M2 is the pricing.You also have to take into consideration that the used M3/4s will be around the same price as a new M2 at the time, so many spending around the $50-55K may find more value going that route. Worst comes to worst I will go ED, but if it is relatively easy to pick up an M2 for less than MSRP more than a year after its initiation then its safe to say private sales will adjust appropriately. So really comes down to how easy it will be to buy one new, guess we will find out.
I think it will be very hard as ppl ordering today will have a loooooong wait...now I can tell you about the swedish market, which, is very small compared to US (lel) but it kinda gives you an idea about demand for this car. Sweden only got 100 cars for 2016. Waiting lists are now beyond mid 2017, probably late 2017 and counting for every new order so im sure mine wont drop in price that much until late 2017...
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      02-04-2016, 05:55 PM   #15
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Quote:
Originally Posted by Makman View Post
I think it will be very hard as ppl ordering today will have a loooooong wait...now I can tell you about the swedish market, which, is very small compared to US (lel) but it kinda gives you an idea about demand for this car. Sweden only got 100 cars for 2016. Waiting lists are now beyond mid 2017, probably late 2017 and counting for every new order so im sure mine wont drop in price that much until late 2017...
We will see if BMW sticks true to their initial allocation numbers or if they adjust production to get closer to the real demand. If I remember correctly BMW increased production of the 1M by something like 300% from their initial numbers. So pre-production allocation numbers may not be that reliable, especially in a multi-year production car
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      02-04-2016, 06:12 PM   #16
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Quote:
Originally Posted by synergist View Post
We will see if BMW sticks true to their initial allocation numbers or if they adjust production to get closer to the real demand. If I remember correctly BMW increased production of the 1M by something like 300% from their initial numbers. So pre-production allocation numbers may not be that reliable, especially in a multi-year production car
Yes, but back then the i3, i8 and 2-series gt etc were not made, today they are(three new model-lines, thats alot). And the initial 1M number were very low from capacity because they were not sure of the concept. Now they are more confident and initial M2 numbers are probably much closer to capacity.

Also, if demand increases for other models, they will get prioritized. (i3 got 50% extended range, etc)

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      02-04-2016, 06:20 PM   #17
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Quote:
Originally Posted by synergist View Post
While it's true the M2 won't see the same production numbers as its big brothers it also won't have the same demand. This group on the forums is not an accurate representation of BMW M buyers as a whole. Some may want the M2 over the M3/4 but most want the amenities the M2 does not offer (moon roof, CF roof, different interior options, more color options, HUD, more power from the factory, ect.) The major thing going for the M2 is the pricing.You also have to take into consideration that the used M3/4s will be around the same price as a new M2 at the time, so many spending around the $50-55K may find more value going that route. Worst comes to worst I will go ED, but if it is relatively easy to pick up an M2 for less than MSRP more than a year after its initiation then its safe to say private sales will adjust appropriately. So really comes down to how easy it will be to buy one new, guess we will find out.
You make some good points,especially the pricing of some used M3 and M4 cars compared to a new M2.I guess used M2 values will depend on how much of an increase in production there will be for the M2 after 2016.If it stays like it is right now,then the M2 will definiteley hold its value much more than the M3 and M4.I don't buy used cars but it will be great if the M2 does hold its value for the next few years.It would be nice to have the option to easily sell my 2016 M2 in a couple years and order the LCI.M2 production numbers will determine how much the M2 holds its value,not the price IMO.
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      02-04-2016, 07:13 PM   #18
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Quote:
Originally Posted by Nantucket
Quote:
Originally Posted by synergist View Post
While it's true the M2 won't see the same production numbers as its big brothers it also won't have the same demand. This group on the forums is not an accurate representation of BMW M buyers as a whole. Some may want the M2 over the M3/4 but most want the amenities the M2 does not offer (moon roof, CF roof, different interior options, more color options, HUD, more power from the factory, ect.) The major thing going for the M2 is the pricing.You also have to take into consideration that the used M3/4s will be around the same price as a new M2 at the time, so many spending around the $50-55K may find more value going that route. Worst comes to worst I will go ED, but if it is relatively easy to pick up an M2 for less than MSRP more than a year after its initiation then its safe to say private sales will adjust appropriately. So really comes down to how easy it will be to buy one new, guess we will find out.
You make some good points,especially the pricing of some used M3 and M4 cars compared to a new M2.I guess used M2 values will depend on how much of an increase in production there will be for the M2 after 2016.If it stays like it is right now,then the M2 will definiteley hold its value much more than the M3 and M4.I don't buy used cars but it will be great if the M2 does hold its value for the next few years.It would be nice to have the option to easily sell my 2016 M2 in a couple years and order the LCI.M2 production numbers will determine how much the M2 holds its value,not the price IMO.
Demand - supply determines value, and in this case demand is already far exceeding supply. Much of this is thanks to the price which is one variable that determines demand. Now, what do you think will happen to an already cheap quality car with low supply if it after one year drops in price? yes, it will meet more demand.

They have to exceed M3/M4 numbers if the M2 is going to decrease in price like the M3/M4. And that will never happen.
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      02-07-2016, 09:19 AM   #19
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$43k in mid 2017 isn't going to happen on clean low mile rig. Salvage? Sure. Wholesale hookup? Perhaps. CL scam? All day.
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      02-07-2016, 01:39 PM   #20
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I have a feeling the M2 will get a price bump in a year or two. The 51k MSRP is a hell of a deal right now. Probably will come with the LCI model...I wouldn't be surprised if it goes up 3k.
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      02-07-2016, 01:47 PM   #21
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Quote:
Originally Posted by synergist
Quote:
Originally Posted by cole3488 View Post
not going to happen at 43. 9k from purchase price is crazy. This would take 3-4 years and have to have crazy miles.
ummmm no, maybe not in a year but definitely 2. That about 15% depreciation... how much do you think cars depreciate? Take a look at the M3/4 sales. Anyone even close to asking for MSRP gets laughed at.
You STILL can't get a 1M for 43k.....
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      02-07-2016, 02:22 PM   #22
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True, but...

The M2 will never be the Original Pirate-Rum-Infused Low-Number Private-Reserve 1er M Coupe' !

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Originally Posted by M3 Adjuster View Post
You STILL can't get a 1M for 43k.....
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