Purchased a BMW M2. does this make financial sense?

ginashamz

hi,

from my last post, I was making a careful consideration on what do with the blown out engine in my rx8 that I have had for the past 7 years. after much thought, I have decided to get it repaired and use as a second car for another year and then replace it with something more economical and practical. my wife use to have a renault megane but it was written off back in January and since she has used the rx8 while I was abroad.

since the engine blew out on the RX8, i was narrowing my choice between a mx5, BRZ, elise or something with more low end power like the 370z or the 1st gen cayman. so after all this, i ended up with a bmw m2 that I haggled from a main dealer for £35,000 paid for in cash. i ruled out the mx5 and brz/gt86 simply because i missed the low end grunt of a 6 cylinder (i use to have the m3 before the rx8. my preferred car was the cayman because of potential repairs and maintenance of a 10 year old car I was a little put off. the 370z was a nice car but when i compared it to the newer m2, there wasn't much in it. my oroginal budget was £30k, but i decided to go with the bmw m2 for
a) it will come with a main dealer warranty so no repairs to worry about
b) it will hold its value better than the 370z over the next 2-3 years
I have no idea what I will do in the longer term but I will keep the m2 for another 2 years at the least. i shouldn't lose a lot in depreciation but i could PX and go back to a Japanese car like the mx5.
in terms of finances, i'm not stressed i have enough but i don't want to be stupid with my money! was this the right decision?

z1a

Irrelevant now, decision's been made.

Cornucopia

Cars are an emotive and divisive subject on MSE. Without knowing more about your circumstances, it's impossible to say whether spending a modest house deposit on a car is sensible or not.

As z1a has already said: decision made, so there probably isn't that much that you can do to reverse the decision anyway.

ginashamz

The decision had been made yes but moving forward,should i sell the M2 off in 2-3 years? i use to have a bmw m3 for around 7-8 years before the rx8 and the repairs costs once out of warranty were astronomical. i could have sworn that i must have spent a small mortgage on that car! i wouldn't want a repeat with the m2 although it may make sense to buy the extended warranty when the manufacturer 3 year warranty runs out

System

ginashamz wrote: »

i ended up with a bmw m2 that I haggled from a main dealer for £35,000 paid for in cash.
I have no idea what I will do in the longer term but I will keep the m2 for another 2 years at the least. i shouldn't lose a lot in depreciation

in terms of finances, i'm not stressed i have enough but i don't want to be stupid with my money! was this the right decision?

From a purely monetary point of view, no. Should have fixed the RX8 for the cheapest option. You'll find this out when you come to change the M2 in 2 years time and see the thick end of a five figure loss as in £10k. I'm assuming that the one you've bought is a year old so its tanked £8-£10k just in the first year. It'll do the same again over the next two, it'll definitely be into a five figure loss in 3 years..

motorguy

ginashamz wrote: »

The decision had been made yes but moving forward,should i sell the M2 off in 2-3 years? i use to have a bmw m3 for around 7-8 years before the rx8 and the repairs costs once out of warranty were astronomical. i could have sworn that i must have spent a small mortgage on that car! i wouldn't want a repeat with the m2 although it may make sense to buy the extended warranty when the manufacturer 3 year warranty runs out

I would be paying for a BMW extended warranty for as long as you can on any M car.

ginashamz

I purchased a 2017 plate manual transmission M2, which had a list price of £49,540 when new with options for £35k with a lot of haggling. I don't think it will continue to fall at £10-15k a year, i think it has taken a brunt of its deprecation already.
I have a mortgage free flat and zero debt so worst comes to worst i do have enough savings to take the hit.
The RX8 will be going to the garage tomorrow for its repair and the misses is happy to daily drive it.

motorguy

ginashamz wrote: »

I purchased a 2017 plate manual transmission M2, which had a list price of £49,540 when new with options for £35k with a lot of haggling. I don't think it will continue to fall at £10-15k a year, i think it has taken a brunt of its deprecation already.
I have a mortgage free flat and zero debt so worst comes to worst i do have enough savings to take the hit.
The RX8 will be going to the garage tomorrow for its repair and the misses is happy to daily drive it.

£35K sounds like a reasonably good deal. With the introduction of the new M2 Performance model 2018 new / pre-reg cars could be got with a bit a of spec for around £42K and as little as a fraction over £40K. For example, heres a 570 mile M2 DCT for £40,995 before any sort of haggling.

https://www.autotrader.co.uk/classified/advert/201803124500983?sort=price-asc&postcode=bt622hb&advertising-location=at_cars&year-from=2018&onesearchad=Used&onesearchad=Nearly%20New&onesearchad=New&model=M2&radius=1500&make=BMW&page=1

Trade price on your car is probably around £31-33K at the moment, and i'd expect that to drop to around £25K-26K in a couple of years time.

I'd budget for a £9,000 drop over two years, probably tailing off to around £3,500 a year after that over the next few years.

ginashamz

i specifically wanted a manual but i do think the DCT will probably hold its value better. what is the Performance model? do you mean the Competition Pack?
all in all, i am financially stable enough so that even if the car is written off tomorrow and i completely lose the £35k it won't really impact me.
will be a refreshing change and should be an upgrade to the rx8 in driving fun.

Debbie_Savard

A mild tune should see the M2 past 400bhp

missile

ginashamz wrote: »

The decision had been made yes but moving forward,should i sell the M2 off in 2-3 years? i use to have a bmw m3 for around 7-8 years before the rx8 and the repairs costs once out of warranty were astronomical. i could have sworn that i must have spent a small mortgage on that car! i wouldn't want a repeat with the m2 although it may make sense to buy the extended warranty when the manufacturer 3 year warranty runs out

If you think maintenance on a beemer is expensive, ................ good job you avoided the Porker :eek: