F30POST
F30POST
2012-2015 BMW 3-Series and 4-Series Forum
BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read
BMW 3-Series and 4-Series Forum (F30 / F32) | F30POST > 2012-2019 BMW 3 and 4-Series Forums > General F30 Sedan / F32 Coupe / F36 Gran Coupe Forum > Autoweek: Furious 3 Review/Update, interesting residual value numbers
Studio RSR
Post Reply
 
Thread Tools Search this Thread
      01-31-2013, 09:06 PM   #23
DarkTrigger
Professional
DarkTrigger's Avatar
United_States
50
Rep
977
Posts

Drives: 335i MPPK
Join Date: Oct 2012
Location: LB, SoCal

iTrader: (0)

Quote:
Originally Posted by tony20009 View Post
Buying is cheaper if you plan to keep your car for 6+ years, not 5, provided you pay for the car in fewer than 5 years.

If you are one who will have a car note every month and then trade in your purchased car, leasing will be cheaper always.

If you buy your car and keep it for 10 years, you are financially better off than in either of the two scenarios above.\

After a certain point, you don't really lose much in car value at all. For example, in 2007, I was offered $5000 for my 1993 318i with 158K miles on it. I paid a bit over $20K for it new in 1993. (I didn't accept the offer, I gave the car to a relative.) I've seen several ads on the Internet where they are still selling for about that price.

So, by simple math, that comes out to around $1000/year in value lost on the car. So, it seems if you keep your car for a very long time, you'll be quite satisfied with the price you can sell it for even when it's very old. I know I would be very happy if in 2021 or so, someone offers me $5000 or $6000 for my E92. Here in 2013, though, $15000-$16000 feels like I'm being ripped off.
+1 Very true.

Although, I must say I didn't even think about a used car. Used car 3-4 years old is probably the best deal since you're getting a relatively new car without all that horrible depreciation of the first few years of a new car.

I was just bringing up the differences between leasing and purchasing. If you lease cars for 10 years versus buying 1 car for 10 years then buying another, it only makes financial sense to buy it.

Personally, I plan to keep this car until it no longer runs. We'll see how long that is, hopefully it's more than 10 years
Appreciate 0
      01-31-2013, 09:13 PM   #24
JohnVidale
Seismoguy
JohnVidale's Avatar
United_States
10
Rep
180
Posts

Drives: 2013 328ix Mojave/Venetian
Join Date: Jan 2013
Location: Seattle

iTrader: (0)

My logic is that my 328ix is exactly the car I want - I see nothing else preferable (at any price) for my needs. Right size, plenty of pep, good mileage for my conscience, Consumer Reports calls reliability great, luxurious, very safe, looks good, and has most of the electronic gadgets that seem useful.

Luckily, I can afford it. If I were buying next year, perhaps the best car would change.

Last edited by JohnVidale; 01-31-2013 at 11:46 PM..
Appreciate 0
      02-01-2013, 03:29 AM   #25
GB72
Private First Class
23
Rep
136
Posts

Drives: F30 335i M Sport Melbourne red
Join Date: Jan 2013
Location: uk

iTrader: (0)

I believe I got a good deal on mine, it's a December 2012 335i m sport with pro nav and a good spec, pre registered brand new the list price was £45000 and I paid £31800, even though I think I got a good deal I know I'll still feel financial pain when I come to sell!
Appreciate 0
      02-01-2013, 08:16 AM   #26
ToyotaBMW
Lieutenant
8
Rep
420
Posts

Drives: Whitetintedwindows
Join Date: Dec 2012
Location: Canada

iTrader: (0)

I think this is the problem when BMW financial makes it so cheap to lease new vehicles. It creates a huge supply of used vehicles and hence supply is greater than demand for used BMW's and any other brand that has cheap leases.
Appreciate 0
      02-01-2013, 08:30 AM   #27
BavarianFanatic
Too much is never enough
United_States
655
Rep
3,079
Posts

Drives: Too Many
Join Date: Mar 2008
Location: SE PA

iTrader: (0)

Quote:
Originally Posted by ToyotaBMW View Post
I think this is the problem when BMW financial makes it so cheap to lease new vehicles. It creates a huge supply of used vehicles and hence supply is greater than demand for used BMW's and any other brand that has cheap leases.
You have it backwards. The leases are cheaper because of higher residual values. Economics 101.
Appreciate 0
      02-01-2013, 08:42 AM   #28
shivaswrath
Brigadier General
shivaswrath's Avatar
United_States
649
Rep
4,323
Posts

Drives: 2012 335i
Join Date: Apr 2008
Location: Lost in NJ

iTrader: (3)

Quote:
Originally Posted by DerekS View Post
My guess is the tested car had all season tires, which always result in longer stopping distances compared to summer performance tires.
No, i meant that's really good. I mean REALLY GOOD...that's only a few feet behind supercars (will more than a few feet):http://www.motortrend.com/features/m...t/viewall.html

Quote:
Originally Posted by jtuds View Post
No, the 4.7 people hang their hat on was not from a standstill.
I see. Yeah, from my seat of pants, feels as fast as my Evo, which was clicking off quarters, with descent shifts, in the 13's.
__________________
CURRENT: 2017 RS3 (miss you guys)
SOLD: 2012 335i Mineral Gray

M Performance Exhaust/Brakes/Suspension/LSD|Bav Stage 1/AMP||ER CP/IC/DP/OC | Dinan CAI/N55 PWG BIG TURBO|BMWF30.com
Appreciate 0
      02-01-2013, 08:45 AM   #29
shivaswrath
Brigadier General
shivaswrath's Avatar
United_States
649
Rep
4,323
Posts

Drives: 2012 335i
Join Date: Apr 2008
Location: Lost in NJ

iTrader: (3)

Regarding leasing versus financing, I run my own business and actually write off the loan payments...with the mileage I place on the car, the lease option would almost be similar in monthly payments...

Unsure what's financially better or not, but my loan is 6 years, warranty is 6 years - if I'm not squeaking and having issues at that point, I'll keep on driving the 335i. I was just surprised that when BUYING a $50k car, it essentially depcreciates $10k a year per 20k miles I put on it...
__________________
CURRENT: 2017 RS3 (miss you guys)
SOLD: 2012 335i Mineral Gray

M Performance Exhaust/Brakes/Suspension/LSD|Bav Stage 1/AMP||ER CP/IC/DP/OC | Dinan CAI/N55 PWG BIG TURBO|BMWF30.com
Appreciate 0
      02-01-2013, 08:55 AM   #30
SamS
Banned
United_States
866
Rep
6,248
Posts

Drives: Tesla M3 Perf + '18 X3 M40i
Join Date: Jul 2010
Location: Dallas, TX

iTrader: (0)

Quote:
Originally Posted by kobechrome View Post
I just sold my 2006 E90 325i for 10k private party. 107k miles. Exactly 7 years old.
Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.
Appreciate 0
      02-01-2013, 08:59 AM   #31
shivaswrath
Brigadier General
shivaswrath's Avatar
United_States
649
Rep
4,323
Posts

Drives: 2012 335i
Join Date: Apr 2008
Location: Lost in NJ

iTrader: (3)

Quote:
Originally Posted by SamS View Post
Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.
Exactly, that was more my point...you purchase a car for $26-50k. Both end at $10k.

I mean, it REALLY HAS TO BE the Ultimate Driving Machine in order to justify the insanity.

Regardless, when I traded in my Evo VIII for the TSX, I was depressed and underwhelmed with the driving experience. The most difficult 50,000 miles I have driven in 20 months.

When I traded in the TSX for the BMW (mind you I made $2,000 profit off of the trade in, go Acura!), I've only had smiles when driving the car since.

I feel like the cost of maintenance on the BMW must add to the depreciation value...
__________________
CURRENT: 2017 RS3 (miss you guys)
SOLD: 2012 335i Mineral Gray

M Performance Exhaust/Brakes/Suspension/LSD|Bav Stage 1/AMP||ER CP/IC/DP/OC | Dinan CAI/N55 PWG BIG TURBO|BMWF30.com
Appreciate 0
      02-01-2013, 09:00 AM   #32
Tsuvoi
Banned
22
Rep
272
Posts

Drives: 2013 F30 328i
Join Date: Oct 2012
Location: New York

iTrader: (0)

Quote:
Originally Posted by DarkTrigger View Post
I can't believe I'm hearing all this talk. Buying a car IS a smarter decision if you plan on keeping it any more than 5 years. Anyone with a little background in finance will tell you that!

Seems like people who are leasing are trying to justify. Leasing is almost ALWAYS worse, unless you run your own business.
Ease off dude, this is buying new vs buying used. That's what people are referring to. Buying old is a good financial move.
Appreciate 0
      02-01-2013, 09:09 AM   #33
DarkTrigger
Professional
DarkTrigger's Avatar
United_States
50
Rep
977
Posts

Drives: 335i MPPK
Join Date: Oct 2012
Location: LB, SoCal

iTrader: (0)

Quote:
Originally Posted by ft1337 View Post
Ease off dude, this is buying new vs buying used. That's what people are referring to. Buying old is a good financial move.
The original post WAS about that. However, everyone keeps talking about leases. Also, if you look, I had another post which identified buying used a much better finnancial choice than new, but not leasing over the long run.

I don't even think you can lease a used vehicle, but the leasing posts are most prevalent, therefore, we're back to the lease vs buying discussion.

I don't care either way, people do what makes them happy, plus we're all financially dumb for buying a BMW, otherwise we'd all have Toyotas which hold their value the best.
Appreciate 0
      02-01-2013, 09:17 AM   #34
SamS
Banned
United_States
866
Rep
6,248
Posts

Drives: Tesla M3 Perf + '18 X3 M40i
Join Date: Jul 2010
Location: Dallas, TX

iTrader: (0)

Quote:
Originally Posted by ft1337 View Post
Buying old is a good financial move.
As long as you don't mind paying tens of thousands to drive around in someone's old car that they farted in all day for the past few years
Appreciate 0
      02-01-2013, 09:46 AM   #35
Jamesons Viggen
Brigadier General
United_States
193
Rep
3,780
Posts

Drives: '98 M Roadster stg 2+ S/C
Join Date: Jul 2012
Location: Rochester Hills MI

iTrader: (3)

I think the car in the test if the Modern Line, that means no sport suspension.
__________________

'98 Dinan/RMS stage 2+(VAC cams, CES Cutring etc)
'15 Buick Regal "T"(wife)
'06 Saab 9-5 Combi 5mt (full suspension, LSD, clipped turbo etc)
Appreciate 0
      02-01-2013, 09:57 AM   #36
tdizzle
Colonel
United_States
107
Rep
1,997
Posts

Drives: 2017 F80 ZCP
Join Date: Aug 2012
Location: Memphis

iTrader: (0)

Quote:
Originally Posted by kobechrome View Post
I think it was around $33,500 (not including taxes/title/fees). It was pretty barebones and I got $500 over invoice.
Interesting, I sold my FX4 F-150 for $12k trade in at the dealer for my 335. I'm sure I couldve gotten around $15k private. It MSRP'd $37k, I forget what I paid for it though, probably around your $33k though. It was also 7 years old when I traded it in, but I "only" had 82k miles.
Appreciate 0
      02-01-2013, 10:07 AM   #37
kobechrome
Captain
kobechrome's Avatar
United_States
38
Rep
699
Posts

Drives: 2013 F30 335xi
Join Date: Dec 2005
Location: Ashburn, VA

iTrader: (0)

Garage List
Quote:
Originally Posted by tdizzle View Post
Interesting, I sold my FX4 F-150 for $12k trade in at the dealer for my 335. I'm sure I couldve gotten around $15k private. It MSRP'd $37k, I forget what I paid for it though, probably around your $33k though. It was also 7 years old when I traded it in, but I "only" had 82k miles.
Good ole bmw depreciation
__________________
Appreciate 0
      02-01-2013, 11:35 AM   #38
BavarianFanatic
Too much is never enough
United_States
655
Rep
3,079
Posts

Drives: Too Many
Join Date: Mar 2008
Location: SE PA

iTrader: (0)

Quote:
Originally Posted by SamS View Post
Two weeks ago, I sold my 2006 Honda Accord (7 years old) to a dealer (not trade, cash sale) for $9500. The MSRP on the Honda was about $26K, and mine had a few dents. That is ridiculous that BMWs depreciate so much over the same time period.
I've been driving an E32 750iL for the last 8 or so years that I bought for $600. Original sticker was north of $80k. I don't mind being on that side of the curve.
Appreciate 0
      02-01-2013, 11:45 AM   #39
snowghost
Colonel
snowghost's Avatar
United_States
155
Rep
2,266
Posts

Drives: '13 335i M-Sport 6MT
Join Date: Jul 2010
Location: SoCal

iTrader: (1)

Quote:
Originally Posted by DarkTrigger View Post
I can't believe I'm hearing all this talk. Buying a car IS a smarter decision if you plan on keeping it any more than 5 years. Anyone with a little background in finance will tell you that!

Seems like people who are leasing are trying to justify. Leasing is almost ALWAYS worse, unless you run your own business.
You can still write off an owned car for tax purposes as well.
__________________
F30 Sapphire Black M-Sport 335i 6MT
Appreciate 0
      02-01-2013, 11:50 AM   #40
shivaswrath
Brigadier General
shivaswrath's Avatar
United_States
649
Rep
4,323
Posts

Drives: 2012 335i
Join Date: Apr 2008
Location: Lost in NJ

iTrader: (3)

Quote:
Originally Posted by snowghost View Post
You can still write off an owned car for tax purposes as well.
That's what I'm doing...my accountant said any cost associated with a company car can be written off (lease/loan/maintenance).

For now..
__________________
CURRENT: 2017 RS3 (miss you guys)
SOLD: 2012 335i Mineral Gray

M Performance Exhaust/Brakes/Suspension/LSD|Bav Stage 1/AMP||ER CP/IC/DP/OC | Dinan CAI/N55 PWG BIG TURBO|BMWF30.com
Appreciate 0
      02-01-2013, 12:37 PM   #41
Jamesons Viggen
Brigadier General
United_States
193
Rep
3,780
Posts

Drives: '98 M Roadster stg 2+ S/C
Join Date: Jul 2012
Location: Rochester Hills MI

iTrader: (3)

Quote:
Originally Posted by shivaswrath View Post
That's what I'm doing...my accountant said any cost associated with a company car can be written off (lease/loan/maintenance).

For now..
That's what I am doing as my business partner and I are forming an LLC. Win!
__________________

'98 Dinan/RMS stage 2+(VAC cams, CES Cutring etc)
'15 Buick Regal "T"(wife)
'06 Saab 9-5 Combi 5mt (full suspension, LSD, clipped turbo etc)
Appreciate 0
      02-01-2013, 01:29 PM   #42
snowghost
Colonel
snowghost's Avatar
United_States
155
Rep
2,266
Posts

Drives: '13 335i M-Sport 6MT
Join Date: Jul 2010
Location: SoCal

iTrader: (1)

Quote:
Originally Posted by SamS View Post
As long as you don't mind paying tens of thousands to drive around in someone's old car that they farted in all day for the past few years
Yeah check out the Top Gear episode where they do forensics on used cars, and find boogers, feces, blood, scabs, skin and semen amongst other things.
__________________
F30 Sapphire Black M-Sport 335i 6MT
Appreciate 0
      02-01-2013, 02:12 PM   #43
Jadar
Dejan
Jadar's Avatar
Serbia
1751
Rep
4,197
Posts

Drives: 2018 Audi S3
Join Date: Dec 2010
Location: Michigan Ave.

iTrader: (6)

Garage List
Quote:
Originally Posted by kobechrome View Post
I don't think the argument is lease vs buying. From a pure financials perspective, buying probably wins out every time. I think the point the poster is trying to make is that buying NEW is "stupid" when compared with buying USED. The most economical way to acquire cars is to buy a 3 yr old used car (when depreciation hits hardest) and then drive that thing to its death, into the ground, sputtering, crawling all the way to the car's grave - then repeat cycle.

However this explanation doesn't account for lifestyle, culture, happiness, what people want to do - its just a pure numbers game. If it makes you happy to have new cars, or lease and drive new cars every 3 years - more power to you if you have the financial means. People have the right to spend their $$ however they want to achieve happiness. Plus, the guy arguing against leasing cars surely has other areas in his lifestyle where there is waste/excess - so its all relative and in the end not really that "stupid."
wow well put, I could not agree more.
__________________
FBO-PS1 and stuff
Appreciate 0
      02-01-2013, 06:52 PM   #44
pruettfan
Brigadier General
1622
Rep
3,402
Posts

Drives: 2017 M2, LBB, DCT, Exec
Join Date: Jul 2009
Location: Chandler, AZ

iTrader: (0)

That residual is about right for a 5 year old car with what will likely be 80,000 miles. Remember residual is not based on retail value it is based on a wholesale value. My 06 330i at 5 years was worth less than that if you look at wholesale, the retail was about 16k.
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT -5. The time now is 07:00 AM.




f30post
Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST