How much will a M3 cost for 3 years (long)?

[Damage Inc]

Hi all

My last 3 cars - 01 330i, 01 M3, 06 330i (all sport, manual), kinda bored with the 330i so started looking at 04 M3 or CTSV, my self made "budget" is up to $40k. Could I spend more, sure, but I tend to flip cars every 1.5 years and dont really need to spend more than that to get a great car. I know I could be #1 or #2 for MSRP at a smaller, dealer in my state, so started thinking - how much would a new M3 REALLY cost to have for a couple years?

I always buy my cars vs. lease, but try to be smart, and keep my monthly expense at $500 or less. Couple examples:

1. Bought a 01 M3 for $35k, drove for 2 years, sold for $33k. Spent $1000 on maintenance, $2k on tax, so that's $5k over 2 years - so well under $500 per month for a M3! It took me a while to find the right car and had to sell private party, but feel its worth my time.

2. Bought 06 330i Euro Delivery for $36k, should be worth about $30k after 2 years, $2k sales tax - so that's $8k in 2 years. About $400 per month. Not bad to drive a brand new BMW!

Anyway, started thinking about the new M3. I really never considered it since its so much more than I'm used to spending. But for grins, here's my math to drive for 3 years:

Purchase Price: $58,000
DP: probably put down about $20k to keep the pmt down
Tax: $3200
3 Year Residual: 70% or $40,600
3 Year Depreciation: $18,000, or $6000 per year

So, $6000 dep + $1000 fin + $1000 (tax) = $8000 per year (appx). $8000\12 = $670 per month.

If I was somehow able to keep the car for longer (4 or 5 years) then the cost per month would drop, but since I only average about 1.5 years to go through a car I need to get through 3 years first.

So would I do it for $670 per month? Hmmm... obviously it will be a heck of a machine, I'll have to think about it. Makes me ready to put down a refundable deposit so make sure I have the choice by the end of summer.

So what factors am I 1) missing 2) not portraying accurately?

The big variable is the residual of 70%. The reason I think that's a possibility is 1) that's close to what an 04 M3 sells for now 2) the new M3 will be a super hot car with somewhat limited production 3) some will be paying over sticker to get one 4) I'll sell via private party.

Looking for opinions. I know, some people will say "just get it" blah, blah, but this is the way I look at a car purchase. The way I look at it, if I'm smart about how I buy my cars it helps me to stretch my $$$, ultimately allowing me to drive a nicer car than I would otherwise drive.

Thoughts anybody? Thanks for reading.

[Last E92 M3]

Gas cost? I mean...I don't know how hard or how much you drive if you get M3 but...I am sure that I will be visiting gas stations every mile once I get mine hahaha

Don't get offended but if you are tight with budget, I wouldn't go for it.
It seems like you are trying to find the worst-case senario by guessing the overall cost of owning this vehicle.
or is it just me?
Something I won't do.

[Damage Inc]

Originally Posted by Last E92 M3

Gas cost? I mean...I don't know how hard or how much you drive if you get M3 but...I am sure that I will be visiting gas stations every mile once I get mine hahaha

Don't get offended but if you are tight with budget, I wouldn't go for it.
It seems like you are trying to find the worst-case senario by guessing the overall cost of owning this vehicle.
or is it just me?
Something I won't do.

Its not about gas cost, etc but just the cost of the car payment.

Its a "budgeting" exercise to predict what the car will cost me per month, over a 3 to 5 year period. Its not so much I dont have the money if it costs more, but this is the "metric" I use when comparing different vehicle costs.

Thanks for the feedback.

[Hans Delbruck]

I'd have to say a lot of posters here don't understand math.

Including me.

There really isn't a way to rationalize a $60K car if you're 'on a budget' of any kind. This is about want, not need.

I do admire the way you've been able to swing your purchases. I also get bored quickly with cars. In fact, I fear I'm going to get bored with the E92 M3 before it's even out. I might have to move on to the next thing... something that is actually available. I'm thinking C6 Z06.

.......:tongue in cheek, sort of:

[Damage Inc]

Originally Posted by sykotoy

Man i fell asleep just reading this, you need a hobby man, what are you ? an accountant jesssuuss. Take the hit buy the car, A budgeting execise on an M3 is crazy, and boring.

It would appear you need some good old fashioned Pizzazz in your life, breaking down the purchase like that makes me wont to suicide man!!!

I suggest!!!
1. Put deposit on m3.

2. See your Dr and demand Anti depressants.

3. Take a Holiday

4. Help me with my spelling.

LOL, you crack me up

[Last E92 M3]

Originally Posted by MojorisinM3

Its not about gas cost, etc but just the cost of the car payment.

Its a "budgeting" exercise to predict what the car will cost me per month, over a 3 to 5 year period. Its not so much I dont have the money if it costs more, but this is the "metric" I use when comparing different vehicle costs.

Thanks for the feedback.

I see...I've never done such a thing so I have no clue.
Isn't it too early for you to calculate these things though? (considering the car is nowhere close to be in production)

Are you bored?

[CSL-Fanatik]

I would like to agree and point out a couple of things that have been said:

1. An M3 is about passion and want; little about need
2. The longer you have the car the less you would have to spend each month.
3. What the actual depriciation will be is fairly hard to determine, because it depends on so many factors (Demand for car, production speed, faults the car may have, competing cars (RS4, RS5, C63AMG, IS500,911, etc.), and so on)
4. Even though some people might critisize you for doing these kind of calculations, I think its smart to really evaluate if the car is worth it to you.
5. If you keep your cars for a short period of time, maybe a lease would be worth looking at (depending on how many miles you drive a year)
6. Do NOT crash such precious cars!!!!

Have a good one and good luck on making the right decision

[paulyd]

I dunno why everyone is laughing at this guy. Thinking about the cost to own a car is smart in my opinion. Not everyone is celebrity rich and able to purchase a $60k vehicle like its a slurpee. Some of us love nice cars and wish to stretch our hard earned money as far as possible. What he laid out is smart and simple. I have also thought about these numbers to see if I can justify laying out the money for a new M3. And it doesn't take more than 10 minutes...
Your numbers look pretty reasonable. Edmunds.com does a similar analysis of all vehicles. I messed around a little and it looks like u should expect more financing expense. On a $38k vehicle(58-20) with 700 per month pmts, 5% interest, you're lookin at closer to $1500 per yr financing at least, cuz that is a conservative estimate with 5%... 70% residual is consistent with current M3's and I can't imagine how e90's could possibly be worse. Other than that I would just think about insurance hikes for a 400hp bmw. But overall, your estimates look good.
Good luck

dear accountant hater,
I am one

[coaster]

... add me to the "accountants" list also.

But I take issue that you guys would want a stripped down M3. BMW is not Lexus so don't expect much in the car's interior for 58K. I for one gotta have lumbar support and would probably have to cough up another $4K or so for the luxury package just to get this one feature (helps me drive long distance without soreness in my back).

I am sure you are gonna want one of the several options the M3 will list for you, like the metalic paint or the premium sound system. And don't forget the luxury tax

So I am looking at closer to $63K plus the other goodies we can't live without (i.e., CA tax, license, upped insurance, tint, etc).

But they have to earn that money from me cause I am no fanboy. Unlike most here I am not getting on any waiting lists until I see what kind of car and numbers BMW puts out there. My backups are a loaded 335i (with the yet un-announced ~$5K Performance Package) or the brand spanking new 2008 Lexus IS-F (aka IS500).

I am sure we'll be re-examining our choices when we get there. :rocks: :rocks: :rocks:

[Last E92 M3]

Originally Posted by coaster

... add me to the "accountants" list also.

But I take issue that you guys would want a stripped down M3. BMW is not Lexus so don't expect much in the car's interior for 58K. I for one gotta have lumbar support and would probably have to cough up another $4K or so for the luxury package just to get this one feature (helps me drive long distance without soreness in my back).

I am sure you are gonna want one of the several options the M3 will list for you, like the metalic paint or the premium sound system. And don't forget the luxury tax

So I am looking at closer to $63K plus the other goodies we can't live without (i.e., CA tax, license, upped insurance, tint, etc).

But they have to earn that money from me cause I am no fanboy. Unlike most here I am not getting on any waiting lists until I see what kind of car and numbers BMW puts out there. My backups are a loaded 335i (with the yet un-announced ~$5K Performance Package) or the brand spanking new 2008 Lexus IS-F (aka IS500).

I am sure we'll be re-examining our choices when we get there. :rocks: :rocks: :rocks:

yes. why is there luxury tax?
aren't we paying enough money already to our government?

[paulyd]

Agreed. I usually assume I will end up paying around $65k for my M3 after u add the sound system, 19's, paint, etc. Maybe even pushing $70k after taxes and depending on the price when it comes out. I will definitely not buy a stripped down M3. I also must have the lumbar as you mentioned. However, I do not need nav and a few other unnecessary options.

While I would not consider myself a fanboy either, I must admit that I don't anticipate any other car exciting me half as much as the new M3 when it comes out. The IS500 is interesting, but I'm not thrilled about the body.
I'd probably just wait and buy a used e92, or heaven forbid...drive an e46! hehe

As you mentioned, I will obviously test drive many before dumping that kind of money.
I'm not sure what taxes everyone is subject to, I believe there is like $2,500 gas guzzler tax on top of what uncle sam usually takes from us.

[Damage Inc]

Originally Posted by chitown08

I dunno why everyone is laughing at this guy. Thinking about the cost to own a car is smart in my opinion. Not everyone is celebrity rich and able to purchase a $60k vehicle like its a slurpee. Some of us love nice cars and wish to stretch our hard earned money as far as possible. What he laid out is smart and simple. I have also thought about these numbers to see if I can justify laying out the money for a new M3. And it doesn't take more than 10 minutes...
Your numbers look pretty reasonable. Edmunds.com does a similar analysis of all vehicles. I messed around a little and it looks like u should expect more financing expense. On a $38k vehicle(58-20) with 700 per month pmts, 5% interest, you're lookin at closer to $1500 per yr financing at least, cuz that is a conservative estimate with 5%... 70% residual is consistent with current M3's and I can't imagine how e90's could possibly be worse. Other than that I would just think about insurance hikes for a 400hp bmw. But overall, your estimates look good.
Good luck

dear accountant hater,
I am one

He he, glad to hear your feedback. I tried the edmunds thingy, but didnt agree much with their numbers. Agreed on the interest, I think I pay about $80 per mo on my $28k loan.

Glad to hear about the 70% over 3 years, I think if you get an early M it could be higher if sold private party (I'm assuming this will be a hot car for the first 18 months alone).

[Damage Inc]

Originally Posted by coaster

... add me to the "accountants" list also.

But I take issue that you guys would want a stripped down M3. BMW is not Lexus so don't expect much in the car's interior for 58K. I for one gotta have lumbar support and would probably have to cough up another $4K or so for the luxury package just to get this one feature (helps me drive long distance without soreness in my back).

:

I wouldnt want an M3 with no options either, but I would categorize between "necessary" and "would like to have". Like with my 330i leather is a "must have" vs. comfort access is a "would be nice, but...". Basically until we see how the options work it will be speculative.

Obviously leather, 19's, moonroof... going with a manual so that will save some $$$ vs. SMG.

[coaster]

Originally Posted by sykotoy

70k us dollars .....your lucky we in Asutralia will be paying close to 120K us dollars for our new M3.

Hey mate, reason you're paying more is cause you boys "down under" make too many Ausie dollars.

Don't cut the Toyota guys yet, they might come to the table with a decent car, who knows? I hear their IS350 was one of two reasons BMW was forced to drop twin turbos into the inline six. The other was the G35. If it wasn't for the IS350 and G35 there wouldn't be a 335i, that's 4sure

Toyota is gonna make sure BMW makes a really good M3. Much more so than Audi.

[visor]

MojorisinM3,
Do you run a business etc.? Because if you do, leasing gives better tax advantages than buying outright.

It is good to look at the financial side of owning a car, but in the end it all comes down to needs vs. wants. I mean, a Civic would serve the same transportation needs as an M3, but obviously the latter would be more fun...

[Damage Inc]

Originally Posted by visor

MojorisinM3,
Do you run a business etc.? Because if you do, leasing gives better tax advantages than buying outright.

It is good to look at the financial side of owning a car, but in the end it all comes down to needs vs. wants. I mean, a Civic would serve the same transportation needs as an M3, but obviously the latter would be more fun...

Nope, in corporate sales... but my wife is a contractor so I will have a chat with my accountant