[KG11]

I need some help: considering selling my 2013 E92 M3 for a used M235i. Here are my thoughts:

The M235i is a private sale, being sold for below trade-in value, so I could drive it for a couple of years and only be out the depreciation. Also, insurance is cheaper, and it is still under warranty. The M3 will cost me $4k to warranty for an extra 3 years (which I will have to buy within the next year) Fuel mileage should be better, as will insurance. Also a bit less insurance to pay on the loan.

I am getting the 2015 M235i for $36,500, it has 8k miles, and is loaded, 6MT. Would be selling my M3 for $44,500 (2013 with 34k miles, loaded).

As far as depreciation on the M235i, what I am I looking at per year? $3500? How about the M3? $5500?

I figure if I can save $200/month driving the M235i, it is worth it. I will put that money aside and in 3 years get a well cared for M2.

So, am I saving $200 a month under this scenario?

[krhodes1]

Originally Posted by KG11

I need some help: considering selling my 2013 E92 M3 for a used M235i. Here are my thoughts:

The M235i is a private sale, being sold for below trade-in value, so I could drive it for a couple of years and only be out the depreciation. Also, insurance is cheaper, and it is still under warranty. The M3 will cost me $4k to warranty for an extra 3 years (which I will have to buy within the next year) Fuel mileage should be better, as will insurance. Also a bit less insurance to pay on the loan.

I am getting the 2015 M235i for $36,500, it has 8k miles, and is loaded, 6MT. Would be selling my M3 for $44,500 (2013 with 34k miles, loaded).

As far as depreciation on the M235i, what I am I looking at per year? $3500? How about the M3? $5500?

I figure if I can save $200/month driving the M235i, it is worth it. I will put that money aside and in 3 years get a well cared for M2.

So, am I saving $200 a month under this scenario?

If you consider that $4K warranty mandatory on the M3, then that is $111/m over 36 months right there. So assuming cheaper insurance, lower interest assuming you are borrowing the money, better gas mileage, and the M235i will be under factory warranty longer, seems like you would probably save that much. Probably no free maintenance on a private-sale 2015 don't forget. Depends on when it was sold originally I believe.

The bigger question is which car do you like better? That is the one to have. I'm biased of course (see signature) but to me the M235i is a no-brainer over the M3. Just about as fast, a whole lot cheaper to run - and I don't believe in extended warranties. If you can't afford to fix it, you can't afford it in the first place.

[YouAreMyWorld]

Assuming you financed the M3, what's the balance left on the loan for that vehicle? And what would be the balance if you were to use most, if not all, of the money from selling the M3?

[KG11]

Originally Posted by YouAreMyWorld

Assuming you financed the M3, what's the balance left on the loan for that vehicle? And what would be the balance if you were to use most, if not all, of the money from selling the M3?

I think I would net out $1k on the M3. It depreciates fast! That 235i is below book, so it wouldn't cost me a dealer margin to get into.

[KG11]

Originally Posted by krhodes1

If you consider that $4K warranty mandatory on the M3, then that is $111/m over 36 months right there. So assuming cheaper insurance, lower interest assuming you are borrowing the money, better gas mileage, and the M235i will be under factory warranty longer, seems like you would probably save that much. Probably no free maintenance on a private-sale 2015 don't forget. Depends on when it was sold originally I believe.

The bigger question is which car do you like better? That is the one to have. I'm biased of course (see signature) but to me the M235i is a no-brainer over the M3. Just about as fast, a whole lot cheaper to run - and I don't believe in extended warranties. If you can't afford to fix it, you can't afford it in the first place.

Ha! I can afford to fix it, but I am also kind of cheap and would like to save up for my dream car, an M2. Driving the 235i for 3 years actually gets a nice down payment toward it.

I ran the numbers, expected depreciation (via Edmunds, FWIW), and everything else I could think of, and got $270/month in savings. That's a lot really. I love the M3, but it isn't $270 a month better for how I drive, especially with that money going potentially toward an M2 in 3 years time.

Does that sound about right?

[ATLIEN]

How could you leave that sonorous V8 behind?

[krhodes1]

Originally Posted by KG11

Ha! I can afford to fix it, but I am also kind of cheap and would like to save up for my dream car, an M2. Driving the 235i for 3 years actually gets a nice down payment toward it.

I ran the numbers, expected depreciation (via Edmunds, FWIW), and everything else I could think of, and got $270/month in savings. That's a lot really. I love the M3, but it isn't $270 a month better for how I drive, especially with that money going potentially toward an M2 in 3 years time.

Does that sound about right?

Seems entirely possible. Probably some more savings here and there - I would bet that an M3 goes through tires faster, for example. Oil changes are certainly cheaper on the M235i.

Personally, I am not all that convinced that an M2 is "better" than an M235i. Different, certainly, but probably not better for what I use my car for. There, I just saved you another $50K+!

Of course, I can't wait to test drive an M2 and see for myself! There is that horrible siren song of European Delivery that is always playing in my head...

[KG11]

Originally Posted by krhodes1

Seems entirely possible. Probably some more savings here and there - I would bet that an M3 goes through tires faster, for example. Oil changes are certainly cheaper on the M235i.

Personally, I am not all that convinced that an M2 is "better" than an M235i. Different, certainly, but probably not better for what I use my car for. There, I just saved you another $50K+!

Of course, I can't wait to test drive an M2 and see for myself! There is that horrible siren song of European Delivery that is always playing in my head...

I came from a 335is, and the biggest difference between that car and the M3 is the suspension and handling. No body roll, full control at insane cornering speeds, crazy confidence. I drove a 1M and it was the same "wow" feeling. If the M2 gives me that at some point in the future, it is my ideal car. The engine isn't as big of a deal, honestly, as I can't really wind it up on public roads. I would take an E92 M3 with an old-school N52 NA engine if they offered it: plenty of power to have fun!

[KG11]

Originally Posted by ATLIEN

How could you leave that sonorous V8 behind?

It will be tough...then I look at the MPG and come back to earth

[YouAreMyWorld]

Originally Posted by KG11

I think I would net out $1k on the M3. It depreciates fast! That 235i is below book, so it wouldn't cost me a dealer margin to get into.

Hmmm.. realistically then, I suppose an extra $270/month just to drive an M3 isn't necessarily worth it.. purely from a financial standpoint anyway.

However as with any 'performance' vehicle, barring exotics, cars are such a depreciable asset that it's almost impossible to look at them purely from a financial perspective. The true worth of the vehicle is deemed almost solely by what it provides for you in other aspects--fun, comfort, "I still look at it every time I park and walk away", just overall being pleased that you're not only proud to own but genuinely enjoy driving said vehicle--and that applies to any vehicle and or brand.

Thus I suppose the real dilemma lies in the fact that you should test drive the M235i and determine it's actual worth outside of the just numbers. If the M235i garners the same satisfaction as the M3, then I'm sure you have your answer. On the other hand, if the M3 elicits a certain intangible that's missing from the M235i, then only you can truly determine if the 'extra cost' is worth that certain "oomph".

[AllBlackBimmer]

What is the purpose of your car?

A daily driver?
Track toy?
Just a toy in general and something fun to drive on the weekends?

The M3 is just that, an M car. More track focused, etc...
M car's also hold their resale value better historically.

M235i is a great car, but the M2 coming out, I wonder what that does to all the M235i's out there as far as pricing, etc. For arguments sake, why would someone really want a M235i when for a few more bucks buy an M2?

... I agree with all your points about your M3... but, let's face it, the M3 is the iconic car from BMW, are arguably the MOST desirable BMW out there.

The V8 E92 M3 is pretty much a realistic "dream" car for me... sure it's not as fast as the new M3/M4, and gas mileage is horrible, etc, etc, etc... but... that is the car I want and desire.

... when you say yours is loaded.. meaning? ... I am looking for a 6MT, competition package, carbon fiber roof, and black/white/space grey with fox red interior... if that is your car, please PM me.

[KG11]

Originally Posted by YouAreMyWorld

Hmmm.. realistically then, I suppose an extra $270/month just to drive an M3 isn't necessarily worth it.. purely from a financial standpoint anyway.

However as with any 'performance' vehicle, barring exotics, cars are such a depreciable asset that it's almost impossible to look at them purely from a financial perspective. The true worth of the vehicle is deemed almost solely by what it provides for you in other aspects--fun, comfort, "I still look at it every time I park and walk away", just overall being pleased that you're not only proud to own but genuinely enjoy driving said vehicle--and that applies to any vehicle and or brand.

Thus I suppose the real dilemma lies in the fact that you should test drive the M235i and determine it's actual worth outside of the just numbers. If the M235i garners the same satisfaction as the M3, then I'm sure you have your answer. On the other hand, if the M3 elicits a certain intangible that's missing from the M235i, then only you can truly determine if the 'extra cost' is worth that certain "oomph".

I love the M3, don't get me wrong. It is gorgeous. For the 400 miles a month I drive it, it is a tough justification however.

[spiderspider]

what about sales tax? buying a $35K car just to trade it in in a couple of years, you end up just eating a lot of that initial sales tax. maybe look at a lease.

[Wilt]

Originally Posted by KG11

As far as depreciation on the M235i, what I am I looking at per year? $3500? How about the M3? $5500?

Somewhat difficult to project amount of depreciation 2-3 years into the future. But let me relate this...

My car's new sticker was $42K; lessee returned car at end of 3 years.
I purchased that car as CPO for $23K...

...my car depreciated (3 yr since new, before I purchased it) by $19K
...my car depreciated (3 years since i purchased it) by $9-10K (KBB used car value)

A newer car depreciates more $$$ than an older car. Keep that in mind in your calculations.

[KG11]

Originally Posted by spiderspider

what about sales tax? buying a $35K car just to trade it in in a couple of years, you end up just eating a lot of that initial sales tax. maybe look at a lease.

No tax on out of state purchases! Registering the car in a non-tax state.

[KG11]

Originally Posted by Wilt

Somewhat difficult to project amount of depreciation 2-3 years into the future. But let me relate this...

My car's new sticker was $42K; lessee returned car at end of 3 years.
I purchased that car as CPO for $23K...

...my car depreciated (3 yr since new, before I purchased it) by $19K
...my car depreciated (3 years since i purchased it) by $9-10K (KBB used car value)

A newer car depreciates more $$$ than an older car. Keep that in mind in your calculations.

That is exactly why I was drawn to this 2015 m235i. Sticker price of $50,700, mine for $36,500, and it's 14 months old with 8k miles. Seems like the prior owner ate the depreciation.

[Two Snails]

The M235i is cheaper to own, cheaper to run & cheaper to maintain. I'm not saying the M3 isn't worth the extra cost but if money & value is the main reason then there you go.

The M235i is quick, but it's not the same realm as the M3 in terms of performance. If the M235i has the LSD & options you want then I say go for it.

I looked at the E90 M3 to replace my 335i & E46 M3 but decided I'd rather keep the lower costing cars & use the 335i as a daily & M3 as a weekend toy.

[Eagle1oh7]

Originally Posted by krhodes1

If you consider that $4K warranty mandatory on the M3, then that is $111/m over 36 months right there. So assuming cheaper insurance, lower interest assuming you are borrowing the money, better gas mileage, and the M235i will be under factory warranty longer, seems like you would probably save that much. Probably no free maintenance on a private-sale 2015 don't forget. Depends on when it was sold originally I believe.

The bigger question is which car do you like better? That is the one to have. I'm biased of course (see signature) but to me the M235i is a no-brainer over the M3. Just about as fast, a whole lot cheaper to run - and I don't believe in extended warranties. If you can't afford to fix it, you can't afford it in the first place.

BMW factory warranties don't transfer over on private sells IIRC. M3 would be more expensive overall. I hope I can find a clean example in 3 years if I don't go with an M2.

[Nitrousbird]

Originally Posted by Eagle1oh7

BMW factory warranties don't transfer over on private sells IIRC.

Who told you that BS?

[Eagle1oh7]

Originally Posted by Nitrousbird

Who told you that BS?

It made front page news a year ago I believe

[shuaige]

Originally Posted by KG11

No tax on out of state purchases! Registering the car in a non-tax state.

Good luck with the insurance fraud.

[city1991]

Originally Posted by Nitrousbird

Who told you that BS?

Started on 2014 or 2015 models. If you buy the car private, warranty doesn't transfer. If buying used from BMW, they can "restart" the warranty. From what I was told by a dealership. Don't trust them unless I see it in writing.