[johnson_ga]

Folks,

Bought 330i M Sports here in UK back in March (it's now only 6 months old) for £38,000, and tried to trade it this weekend against Z4M Coupe they had in stock. Dealer offered only £24,500. That's £2250 per month depreciation! Dealer says it's because of loss of VAT (sales tax), but I wonder if there's an oversupply issue leading to this massive depreciation? Am going to hang on to E90 for another 6 months to see if depreciation 'shallows-out' a bit. I always knw that new cars depreciated heavoly in first year, but 'ouch'!! To be fair to the dealer, they did offer me £2000 off the Z4M (discounts are unheard of on this rare hard-to-get car in the UK) as some sort of compensation, but Glasses only showing car as £28,000 anyway.

[canucklion]

so in UK z4M is cheaper than the 330i?

[johnson_ga]

£24500 trade in for 330i. Would then also have to find another £19000 to get to £43,500 of Z4M Coupe in stock.

[Bimmerista]

I would think the depreciation has more to do with the fact that at least in NA, 35% of the car's value is lost withing the first few months of ownership (some say it is gone the moment you drive it off the dealer lot) and as well that the dealer (any dealer) will try to lowball on trade-in to lock in some profit for the dealer (so price will be below market for that reason). Add both together and you have you offer from the dealer.


After the first year of ownership the rate of depreciation decreases.

[ScBlacksunshine]

Don't know how it is in Europe, but in the states, the biggest mistake is to go to dealership and use the amount they offer you as rate of depreciation. even if they don't lowball you, it'll still be lower then private party transaction.

[canucklion]

that's why a good approx. rule of thumb is if you buy a car, best to keep it around 5 years.

because cars are depreciating assets afterall.

Originally Posted by Bimmerista

I would think the depreciation has more to do with the fact that at least in NA, 35% of the car's value is lost withing the first few months of ownership (some say it is gone the moment you drive it off the dealer lot) and as well that the dealer (any dealer) will try to lowball on trade-in to lock in some profit for the dealer (so price will be below market for that reason). Add both together and you have you offer from the dealer.


After the first year of ownership the rate of depreciation decreases.

[canucklion]

cool, I thought you said 28,000 pound for the Z4M coupe in your original message.

Originally Posted by johnson_ga

£24500 trade in for 330i. Would then also have to find another £19000 to get to £43,500 of Z4M Coupe in stock.

[335I talian Stallion NJ]

Originally Posted by johnson_ga

Folks,

Bought 330i M Sports here in UK back in March (it's now only 6 months old) for £38,000, and tried to trade it this weekend against Z4M Coupe they had in stock. Dealer offered only £24,500. That's £2250 per month depreciation! Dealer says it's because of loss of VAT (sales tax), but I wonder if there's an oversupply issue leading to this massive depreciation? Am going to hang on to E90 for another 6 months to see if depreciation 'shallows-out' a bit. I always knw that new cars depreciated heavoly in first year, but 'ouch'!! To be fair to the dealer, they did offer me £2000 off the Z4M (discounts are unheard of on this rare hard-to-get car in the UK) as some sort of compensation, but Glasses only showing car as £28,000 anyway.

Sell it privately? eBay? Autotrader?

[voltron1011]

What's the current VAT for UK? Like 16%? Does the government let you carry over any of the taxes that you paid into the 330i into the Z4? In most US states, you only have to pay taxes for the difference of the new car and your trade in.

[johnson_ga]

Thanks for responses. To answer questions;

- VAT (sales tax is 17.5% here)
- Government makes no tax concessions
- Autotrader showing similar cars at ca. £26000. Will look at e-bay.
- Yes I'm a fool for wanting to change early (normally keep cars for 3 years), but Z4M Coupe is sooooo cool.

I also have tracker, RTI insurance and maintenance program - I would lose all of that.

I guess I was aware of all this - it just hurts when it hits you personally in the pocket!

Thanks again.

[ZuerstBMW]

Originally Posted by canucklion

that's why a good approx. rule of thumb is if you buy a car, best to keep it around 5 years.

because cars are depreciating assets afterall.

Yep or lease it, then you dont have to worry at all.

[BK]

It is not the E90, it is the same story with any model of car. BMW is actually a lot better than most. If you don't want the huge depreciation hit, don't buy new. Buy a used car and let some other sucker pay for that initial depreciation.

[BK]

Originally Posted by ZuerstBMW

Yep or lease it, then you dont have to worry at all.

Yes, no worries because all you pay is depreciation!

Seriously, I don't want to turn this into yet another buy versus lease thread, but as has been said over and over again, whether you buy or lease you take the depreciation hit. One potential benefit to leasing is that you know in advance exactly how much that hit will be.

[johnson_ga]

Thanks for this. I guess I'm most surprised at >35% depreciation in 6 months as my 3 old year old 330ci (E46) only depreciated 40% over 3 years of ownership. I wouldn't be surprised if depreciation on E90 is heavier than E46.....

Thanks anyway - yes, I've learnt my lesson the hard way!

BTW, local dealer was doing a 'ride and drive' this last weekend. Drove a 530d, 630i, Z4M Coupe and Z4 Roadster (3.0si). 630i (same engine as mine) was very sluggish (heavy car), however 530d was very smooth and responsive. Z4's were just so much fun - akin to the old Austin Healeys - nose up and rear haunches down on acceleration. If only I could have multiple cars in the garage......