Depreciation on Mcoupes

[chickdr]

Originally Posted by philippelyp

I feel you are missing my point. We're talking about depreciation. We're not comparing cars and we're not talking about the zpost crowd. We're talking broad market dynamics.

To maintain or increase the price of used M Coupe, you need the following conditions:
1. Enought people that:
a. Can afford to pay $30k+ for a car
b. Can afford to have a second car or use a two seater as their primary car
c. Would not consider any brand / model
2. Less offer than demand

I would not pay over $30k for a Z4 M Coupe because I don't think market conditions justify it.

I would compare that to the Ferrari market. Prices drop significantly in the first few years and then continue to drop but a lot slower pace.

The key point is in bold above. YOU don't think conditions justify it, but as was said earlier they don't make the Z4M coupe any more so they aren't getting any more common and low mile examples continue to dwindle. If someone has their eyes set on the Z4M(and it most certainly desirable now as price trends are showing) the price will like be at 30K or more for a low miles example. You won't buy one, but this is your decision. If the car you spoke of from a board member is a high quality car, it will sell at the price they want eventually.

[gtMc]

Originally Posted by philippelyp

I feel you are missing my point. We're talking about depreciation. We're not comparing cars and we're not talking about the zpost crowd. We're talking broad market dynamics.

To maintain or increase the price of used M Coupe, you need the following conditions:
1. Enought people that:
a. Can afford to pay $30k+ for a car
b. Can afford to have a second car or use a two seater as their primary car
c. Would not consider any brand / model
2. Less offer than demand

I would not pay over $30k for a Z4 M Coupe because I don't think market conditions justify it.

I would compare that to the Ferrari market. Prices drop significantly in the first few years and then continue to drop but a lot slower pace.

I think Philippelyp, you fairly state the ///M isnt worth over 30k to you. Thats fine and fair. There are obviously other cars out there that offer different elements that are worth more to you than what the ///M offers above $30k.

But above, you self-answer the big question here about depreciation. The market speaks for itself. All of the items you list do exist, and therefor have slowed depreciation. Just becuase you personally cant justify it, doesn't mean it isn't right.

My (and many other M owners) priorities for a car seem to be different than yours, and thats OK. To each his own!

[David70]

I don't disagree with anything Phillippelyp has said. In the end he won't pay over $30k, nothing wrong with that. On the other hand many will.

I have had a long standing search set up on Autotrader that only shows me Z4M Coupe's with less than 45k miles, anywhere in the country. I checked it today and there are currently 21 listings that meet the criteria. Two are listed under $30,888, one of these has been in an accident and the other one is in Chicago and comes with a set of snow tires. I do also realize list prices aren't the same as sale prices.

As someone that was looking until recently I think he will have to wait and be ready to buy quickly if with the $30k limitation, especially if he limits the search area (if you don't the travel and shipping cost end up makng you wish you had just spent a little more) and isn't willing to take high miles.

[mhughett]

Originally Posted by David70

I don't disagree with anything Phillippelyp has said. In the end he won't pay over $30k, nothing wrong with that. On the other hand many will.

I have had a long standing search set up on Autotrader that only shows me Z4M Coupe's with less than 45k miles, anywhere in the country. I checked it today and there are currently 21 listings that meet the criteria. Two are listed under $30,888, one of these has been in an accident and the other one is in Chicago and comes with a set of snow tires. I do also realize list prices aren't the same as sale prices.

As someone that was looking until recently I think he will have to wait and be ready to buy quickly if with the $30k limitation, especially if he limits the search area (if you don't the travel and shipping cost end up makng you wish you had just spent a little more) and isn't willing to take high miles.

There was an IB M coupe with 36k miles at the dealer here in Tulsa last week but I just checked and it sold this week. It was a one-owner, local car with a clean carfax and the dealer was only asking $30.8k. Seemed a little low for a dealer asking price and it sold within a week. The only thing I saw that I didn't like about it was no heated seats. Otherwise, it was in great shape.

[BIMMERGUY91]

Originally Posted by txz4

this is silly, the Mas would never be cross shopped with the M coupe for one very specific reason. 99.99 percent of us M coupe owners, wanted an M coupe and nothing else would have satisfied for that price. There is a reason there is a "what it would take to part with my M coupe" thread...

THIS! The reason the price of an M Coupe is high and remains high is because they are a specific niche. If you want an M Coupe thats exactly what you want and nothing else will do. And seeing as there are only 1815 out there you have to pay. Some people get it some people dont.

[jdl1pt]

Originally Posted by philippelyp

I feel you are missing my point. We're talking about depreciation. We're not comparing cars and we're not talking about the zpost crowd. We're talking broad market dynamics.

Not to move this thread further off topic, but I disagree. When I was shopping for my Z4MC two years ago, you could find a number advertised for under 30k, very few were priced at the 32-35k mark. Now, you'll be lucky to find one with a starting price under 30k. One would assume that if the asking price is higher now compared to 2 years ago, the sale price will also be. There are a number of reasons for the price increase, but the main reason is supply and demand. When I was shopping, I could easily find 15 for sale in a 500mi radius, now...5. The car has appreciated in the last two years, not depreciated. You'll have a hard time buying an M coupe for under 30k because very few folks are willing to sell at that price, the market is simply demanding more.

One other thing: regarding the 1st generation M coupe, you can easily find an early model for 18k, but you will not find a 2001 or 2002 model with an S54 anywhere near that range. A quick search of Autotrader reveals 4 cars currently for sale in the US, the cheapest at $23k with 75xxx miles. My guess is that this one was wrecked or salvaged...the next is priced at $34k at 40xxx miles. (See earlier comment about supply and demand.)

[philippelyp]

There's a beautiful Black Z4M Coupe for sale in the classified section at $30k. Sure, it has 43,800 miles but it is in pristine condition and has all the desirable option. Why hasn't anybody been jumping on that one?

[jdl1pt]

Is your question rhetorical?

It's in your price range, so go take it for a spin. You could buy it and then prove us all wrong...or right.

[David70]

Originally Posted by philippelyp

There's a beautiful Black Z4M Coupe for sale in the classified section at $30k. Sure, it has 43,800 miles but it is in pristine condition and has all the desirable option. Why hasn't anybody been jumping on that one?

I think it is still listed as $32k on Autotrader (not positive same listing) so for me it was wrong side of country, didn't really want black, and with the miles and cost to get it back it became too expensive for what I was looking for. If this is really the same car as the one I see on Autotrader I am not sure why is listed here for $1k less.

I cross shopped this car with the Cayman S and found that for same year and mileage they were generally more expensive. There were a number of other reasons I didn't buy one of them but that has been covered in other posts.

[goomanchu]

I think these estimates are accurate. I have been tracking cars for a few months now and am one of those who decided a while back that I needed to get this car, and it is now time. I just found the forum and love it, I have never owned a BMW. Low mileage MC's (35K or less) seem to be consistently moving in the 29 to 32 range. I had what I thought was a great deal nailed down on a 2007 Red/black ($29,750), but missed getting it by about 2 hours. North of 32K - they seem to take longer and I don't know if the seller ends up getting the price, or negotiates down. There is quite a discrepancy ($5-8K) on asking price for what appear to be nearly identical cars on-line. I think based on individual owner's affection for their car.
Anyway - I love the website, I am trolling the ads, here and on autotrader, etc. watching and waiting for my car. Can't wait.

[Chamberlin]

Just sent the check/paperwork in today for my '06 Z4 M coupe - 27k miles - $32,000. It's just one of those cars that has the magic mix of performance, looks, prestige, and exclusivity. At any one time, there are at least 1750 guys or girls out there that understand this, and are enjoying one fantastic auto. For the remaining 65 or so cars which are in the process of parting with their owners (for whatever reasons), they are being sought after by guys like me. Guys who were mezmorized by the lines of the car some 6 years ago, after seeing one out on the open road for the first time. Guys who have owned other sports cars, have other daily drivers, have become fairly successful in their jobs, started families etc... Guys who feel at home with the BMW brand, yet want something that most other BMW owners don't even know exists. Guys who want a raw sports car experience, with some modern amenities. The list goes on...

You can see then, that with all of those *special* qualities, and a good cross section of potential buyers (in a recession no less), that the Z4 M coupe will continue to be in demand for as long as there is 91+ octane available. It's somewhat cliche to say, but I can't help but think of this car as a true modern classic. Happy to pay the $32k.

[jrainlay]

The larger economy plays a big role in pricing because it generally determines need to sell and willingness/ability buy. 2011 saw some modest improvement in the US economy, hence some improvement in MC price. But with the worsening economic crisis in Europe, dismal employment picture in the US and the growing threat of another recession, you can look for increasing need/desire to sell (supply) and decreasing willingness/ability to buy (demand) resulting in decreasing prices. Niche cars like the MC especially susceptible to this dynamic. Of course, the super-rich are better insulated from adverse developments in the larger economy, but they will be shopping for Bentleys, Ferraris and Lamborghinis, not BMW Z4 M Coupes.

[Phishman]

Originally Posted by Chamberlin

Just sent the check/paperwork in today for my '06 Z4 M coupe - 27k miles - $32,000. It's just one of those cars that has the magic mix of performance, looks, prestige, and exclusivity. At any one time, there are at least 1750 guys or girls out there that understand this, and are enjoying one fantastic auto. For the remaining 65 or so cars which are in the process of parting with their owners (for whatever reasons), they are being sought after by guys like me. Guys who were mezmorized by the lines of the car some 6 years ago, after seeing one out on the open road for the first time. Guys who have owned other sports cars, have other daily drivers, have become fairly successful in their jobs, started families etc... Guys who feel at home with the BMW brand, yet want something that most other BMW owners don't even know exists. Guys who want a raw sports car experience, with some modern amenities. The list goes on...

You can see then, that with all of those *special* qualities, and a good cross section of potential buyers (in a recession no less), that the Z4 M coupe will continue to be in demand for as long as there is 91+ octane available. It's somewhat cliche to say, but I can't help but think of this car as a true modern classic. Happy to pay the $32k.

Very well put, I felt the same way when I bought mine.