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  • FIRST POST
    • ginashamz
    • By ginashamz 13th May 18, 11:32 AM
    • 89Posts
    • 11Thanks
    ginashamz
    Purchased a BMW M2. does this make financial sense?
    • #1
    • 13th May 18, 11:32 AM
    Purchased a BMW M2. does this make financial sense? 13th May 18 at 11:32 AM
    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?
Page 1
    • z1a
    • By z1a 13th May 18, 11:35 AM
    • 1,560 Posts
    • 1,537 Thanks
    z1a
    • #2
    • 13th May 18, 11:35 AM
    • #2
    • 13th May 18, 11:35 AM
    Irrelevant now, decision's been made.
    • Cornucopia
    • By Cornucopia 13th May 18, 11:54 AM
    • 10,944 Posts
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    Cornucopia
    • #3
    • 13th May 18, 11:54 AM
    • #3
    • 13th May 18, 11:54 AM
    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.
    Last edited by Cornucopia; 13-05-2018 at 11:56 AM.
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    • ginashamz
    • By ginashamz 13th May 18, 12:12 PM
    • 89 Posts
    • 11 Thanks
    ginashamz
    • #4
    • 13th May 18, 12:12 PM
    • #4
    • 13th May 18, 12:12 PM
    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
    • Tarambor
    • By Tarambor 13th May 18, 12:38 PM
    • 3,798 Posts
    • 2,833 Thanks
    Tarambor
    • #5
    • 13th May 18, 12:38 PM
    • #5
    • 13th May 18, 12:38 PM
    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?
    Originally posted by ginashamz
    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..
    Last edited by Tarambor; 13-05-2018 at 12:40 PM.
    • motorguy
    • By motorguy 13th May 18, 12:46 PM
    • 17,854 Posts
    • 10,895 Thanks
    motorguy
    • #6
    • 13th May 18, 12:46 PM
    • #6
    • 13th May 18, 12:46 PM
    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
    Originally posted by ginashamz
    I would be paying for a BMW extended warranty for as long as you can on any M car.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • ginashamz
    • By ginashamz 13th May 18, 12:54 PM
    • 89 Posts
    • 11 Thanks
    ginashamz
    • #7
    • 13th May 18, 12:54 PM
    • #7
    • 13th May 18, 12:54 PM
    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
    • By motorguy 13th May 18, 2:32 PM
    • 17,854 Posts
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    motorguy
    • #8
    • 13th May 18, 2:32 PM
    • #8
    • 13th May 18, 2:32 PM
    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.
    Originally posted by ginashamz
    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%20Ne w&onesearchad=New&model=M2&radius=1500&make=BMW&pa ge=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.
    Last edited by motorguy; 13-05-2018 at 2:40 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • ginashamz
    • By ginashamz 13th May 18, 3:05 PM
    • 89 Posts
    • 11 Thanks
    ginashamz
    • #9
    • 13th May 18, 3:05 PM
    • #9
    • 13th May 18, 3:05 PM
    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
    • By Debbie Savard 13th May 18, 3:22 PM
    • 419 Posts
    • 364 Thanks
    Debbie Savard
    A mild tune should see the M2 past 400bhp
    Last edited by Debbie Savard; 13-05-2018 at 3:26 PM.
    • missile
    • By missile 13th May 18, 4:07 PM
    • 9,781 Posts
    • 4,920 Thanks
    missile
    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
    Originally posted by ginashamz
    If you think maintenance on a beemer is expensive, ................ good job you avoided the Porker
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • motorguy
    • By motorguy 13th May 18, 6:07 PM
    • 17,854 Posts
    • 10,895 Thanks
    motorguy
    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.
    Originally posted by ginashamz
    Apologies yes - the revised M2 is now called the M2 Competition.

    I'd drive on as long as you can at it - the depreciation will level off and a good, well maintained, M car will always be in demand
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • DUTR
    • By DUTR 13th May 18, 9:04 PM
    • 11,495 Posts
    • 6,561 Thanks
    DUTR
    Apologies yes - the revised M2 is now called the M2 Competition.

    I'd drive on as long as you can at it - the depreciation will level off and a good, well maintained, M car will always be in demand
    Originally posted by motorguy
    Although you buy a car that YOU want, (and can afford) when it comes to selling, if it is still desirable to the previously owned market , then that is a bonus.
    • motorguy
    • By motorguy 13th May 18, 10:12 PM
    • 17,854 Posts
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    motorguy
    Although you buy a car that YOU want, (and can afford) when it comes to selling, if it is still desirable to the previously owned market , then that is a bonus.
    Originally posted by DUTR
    Agreed. And an M2 should fall in to that category, particularly if the O/P maintains a FBMWSH and extends the warranty.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • ginashamz
    • By ginashamz 13th May 18, 11:10 PM
    • 89 Posts
    • 11 Thanks
    ginashamz
    Although you buy a car that YOU want, (and can afford) when it comes to selling, if it is still desirable to the previously owned market , then that is a bonus.
    Originally posted by DUTR
    yes, its a nice car and all but will need to get use to the way it goes especially on public roads. with the rx8 i had to ring its neck to thrust forward but with the m2 i dont think i would really be able to exploit its full power on public roads. from the brief test drive i had it had a quicker steering response than the rx8 and felt more flat round the bends.
    • Hoof Hearted
    • By Hoof Hearted 14th May 18, 7:29 AM
    • 2,136 Posts
    • 2,117 Thanks
    Hoof Hearted
    I don't think any part of your proposition makes financial sense, but you should get a lot of enjoyment out of the car. Financial sense would be buying a Mk2 or 3 Nissan Micra for under a grand and running it for as long as possible.
    Je suis sabot...
    • motorguy
    • By motorguy 14th May 18, 8:56 AM
    • 17,854 Posts
    • 10,895 Thanks
    motorguy
    I don't think any part of your proposition makes financial sense, but you should get a lot of enjoyment out of the car. Financial sense would be buying a Mk2 or 3 Nissan Micra for under a grand and running it for as long as possible.
    Originally posted by Hoof Hearted
    Thats exactly it. We've an AMG A45 thats depreciating like snow dropping off a ditch but we have a wail of a time in it.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • davidwood681
    • By davidwood681 14th May 18, 9:30 AM
    • 646 Posts
    • 1,925 Thanks
    davidwood681
    You'd have been in a better position if BMW had stuck to their original build number and limited production like they did with the 1m.

    They were rare then.....now most dealers have a few in stock
    Last edited by davidwood681; 14-05-2018 at 11:29 AM.
    • ginashamz
    • By ginashamz 14th May 18, 11:20 AM
    • 89 Posts
    • 11 Thanks
    ginashamz
    do you mean the bmw m coupe that came out in 2011? That is a nice car but looks like they're really holding their value, going for 50k on average! looks like it will only go up.


    for the m2, I think the competition package variant will hold its value and overtime possibly rise.
    would be interesting to see how the last gen v8 m3 holds up in value as they are the last naturally aspirated v8s. I think they are at a all time low now and should slowly start to creep. this happened to my old 6 cylinder m3, the prices are slowly going up
    Last edited by ginashamz; 14-05-2018 at 11:22 AM.
    • davidwood681
    • By davidwood681 14th May 18, 11:29 AM
    • 646 Posts
    • 1,925 Thanks
    davidwood681
    Sorry, yeah the 1M

    If I remember only about 500 came to the UK.

    If the carry on making the M2, the price won't rise as quickly as the 1M did.
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