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      05-12-2016, 03:38 PM   #1
spooked
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2014 M5 Depreciation

Hi All,

Quick bit of advice required .

I have had an e92 m3 and about to buy and 2014 BMW F10 M5 however people at work are saying they lose their money very quickly and I shouldn't be spending £40+ k on a 2014 plate car? I would have thought it's lost a lot of its money but 12 plates can be had for high 20's now!

What are you thoughts on depreciation and where do you feel the pricing will be in say 2/3 years?

Should I be buying an older car - I like the facelift you see?

Thanks,
nick
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      05-18-2016, 04:46 AM   #2
beemarman
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If you're worried about depreciation, then don't buy an M5.

Probably better buying a Nissan R35 or something else.
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      06-12-2016, 06:29 AM   #3
sonnenschein3000
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Its going to drop like a tonne of bricks. The new shape is coming out in 2018
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      06-12-2016, 11:25 AM   #4
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Quote:
Originally Posted by sunnydude959
Its going to drop like a tonne of bricks. The new shape is coming out in 2018
That's a long time to wait.
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      06-12-2016, 01:04 PM   #5
sonnenschein3000
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Quote:
Originally Posted by RWDpetrol View Post
That's a long time to wait.
It is, but I think the idea of something being 'old shape' sticks in peoples minds, especially when the new regular 5 series (G30) is probably coming early next year or so

However, the reality is very different. I for one would much rather have the existing F10 M5 than the brand new shape E63 AMG, for example
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      06-18-2016, 04:09 AM   #6
SteveC
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M5 Depreciation

In 2014, BMW were already offering 0% finance and various incentives totalling around £10K. Some dealers could be pushed as high as £12-13K total discount. So a brand new car with £83k list could be driven off the showroom floor for £70 - £71 k. The finance charges over 4 years, based on RRP are worth around £8K so the incentives totalled around £20K

After a 4 year lease, the car is worth say £25K, so your linear depreciation based on RRP is roughly speaking (83-20-25)/4 about £10k per year.

Most cars of a similar price will depreciate at more or less the same rate, unless its a GT3, GT4, 911R or 1M. M5s only look bad when you look at depreciation based solely on the RRP, but M5s haven't sold at RRP for several years.

If you take a 2014 F80 M3 or M4, most sold for close to RRP and lease cost were around 4.9%, so overall, depreciation is going to be similar to an M5 when you include finance charges.

Buying an older car, the absolute depreciation will be lower because the car costs less....the %age depreciation however will be similar.

New model releases only really affect late models from the previous generation due to more radical RRP erosion shortly before launch. However new models are usually launched without discounts and incentives and carry higher finance charges, both of which tend to support used car prices...The problem for older cars usually comes when the dealers start pricing newer models more aggressively. Its then that prices drop and some real bargains may be had.

Last edited by SteveC; 06-18-2016 at 04:39 AM..
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      08-10-2016, 08:36 AM   #7
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Quote:
Originally Posted by sunnydude959 View Post
Its going to drop like a tonne of bricks. The new shape is coming out in 2018
Sooner than that, as you say "Plummeting".
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      08-11-2016, 10:23 AM   #8
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Oh great I'm thinking of buying one on Sunday! Never mind it's the price you pay for the ultimate driving machine I suppose.
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