E46 M3 depreciating vs. "collectible" or "classic"?

[dcdude68]

I've been looking at nice M3 cabs at around $22K, and I wonder if they will just keep depreciating as new models are released or is there something more to them?

I just sold my Porsche 993 and to be honest, it didn't depreciate at all after 5 years. Admittedly, 993s are special cars, and I know that BMWs aren't Porsches and that you should never buy a car as an "investment," but I don't want to lose my ass either.

What do your crystal balls tell you? For example, we might all agree that the E30 M3 is a modern classic, is done depreciating and might be appreciating. Can we expect anything like this with any E46 models?

[boomersooner523]

It is too soon to tell. However, BMW produced FAR more e46 M's than e36's and e30's combined. I doubt it will ever be a collectable car. Will it always be a great car? Yes. That is the most important thing to me personally

[lmtfi]

E46 M3s will continue to depreciate.

And you are right - 993s are special. That depreciation rule doesn't apply to the E46 M3.

[Ian1973]

Just a car.

[Mfleet]

E46 M3 (and the E39 M5) will be interesting to watch where it bottoms out on depreciation. Definitely some more value to lose.

Problem is so many produced means there's always going to be some sellers and dealers out there over the next decade more than happy to sell around kbb's value. KBB or any other valuation won't recognize a significant collectible premium (good example now is the 8 series). Last few years I've watched the divergence in sales prices vs kbb on the e39 m5 and e38 740 sport, so the enthusiast premium is emerging. But I say the high supply, continual kbb decline, passage of time just too much downward pressure on values.

Bottom line we can hope for the bimmer /m enthusiast premium but in the end no rarity/collectible premium!

Now an 06 low mileage 6spd m3 w/ competition package 10+ years from now...last of the lightweight high revving n/a inline 6 and best looking bimmer pre fuel efficiency era...

[97m3john]

e36 m3's already bottomed out. Prices have come back up alittle. In the next 5 yrs e46 m's will come back.

[dcdude68]

Great input!

As long as there are buyers who prefer E46 M3s to the new ones, there will be a demand. That's one part of being a "classic." Let me bore you with some of my supply and demand theory:

As long as kids and novices continue to wad up these cars on road and track, the total supply goes down. As people continue to pile miles on daily drivers, the supply of units with under 100K (for example) will go down. As 3rd, 4th and 5th owners get their grubby paws on them, the supply of well-maintained examples will go down (Google "Porsche 944 syndrome").

So perhaps at this point, buyers who buy low miles, don't put on too many more and take care of their car may not get hurt too bad, resulting in a low cost of ownership if their plans change and they decide not to sell.

[rommelrules]

The E46 M3 is obviously not done depreciating. Not by a long shot.
And it will take an even bigger hit once the new M3 comes out-- now were talking two generations removed.

But just how much your E46 M3 will depreciate depends to some extent on how your car is configured, color combo, specs, etc.
This is a factor that is often overlooked. I know my Interlagos Blue/Cinnamon manual 6-speed ZCP with 50K will hold its value much better
than a comparable run-of-the-mill black on black, SMG, non-ZCP M3 as there just aren't that many out there, and down the line,
I will always find the right buyer wanting to pay a premium for it. Well, hopefully...

But both my M3 and the black M3 will continue to depreciate. Just at a different pace...

[androofoo]

i agree it'll depreciate more and more.

[dcdude68]

Well there has to be a bottom somewhere. Even nice "regular" (non-M) E30s have settled down at around 1/4 of their original selling price, right? Admittedly, much of the values are propped up by simple inflation.

[RobertFontaine]

To most people there is absolutely no difference between the 318, 320, 325, 328, M3 e36 or e46. Hoping that these will turn into a "classic" or "collectible" is pretty tough. If you could keep a clean M3 for another 40 years or so it might be collectible but not like a barracuda or a superbee. They really aren't all that special from either a styling or performance perspective and the production numbers are huge.

I'll be happy to add a M5 e39 to the garage for a low price. Sadly the maintenance on these cars still carries a hefty premium over the japanese or domestic cars.

[bdejong11129]

I will be contributing to the daily driver high mileage M3 pool that will raise the value of the ones who sadly spent their lives as garage queens.. I buy a car to drive and enjoy it, they made a lot of them and more than likely, as has happened in the past, I will move to another BMW car in a few years anyways.

As was posted earlier, its just a car, albeit a great car, still just a car...

Disclaimer-this is my opinion and yours may vary... I am not a troll or attempting in anyway to steer the conversation in a negative way. :p

Sent from my GT-P7510 using Tapatalk 2

[dcdude68]

Not trolling at all. Good perspective. Absolutely nothing wrong with daily driving. There were several people on Rennlist (Porsche forum) who do just that with their 993s. A well-maintained car with 60K - 90K on the clock already is a great choice for that. I was always amazed, however, when people would pay top dollar for a 20K - 30K car then drive the value out of it. An expensive luxury for me. Obviously, E46s are different, but the concept is somewhat similar.

I ride the bus every day. Since daily driving is not an option, losing big value on a garage queen that mostly sits during the week seems like the saddest scenario of all....

[alkemyst]

Great input!

As long as there are buyers who prefer E46 M3s to the new ones, there will be a demand. That's one part of being a "classic." Let me bore you with some of my supply and demand theory:

As long as kids and novices continue to wad up these cars on road and track, the total supply goes down. As people continue to pile miles on daily drivers, the supply of units with under 100K (for example) will go down. As 3rd, 4th and 5th owners get their grubby paws on them, the supply of well-maintained examples will go down (Google "Porsche 944 syndrome").

So perhaps at this point, buyers who buy low miles, don't put on too many more and take care of their car may not get hurt too bad, resulting in a low cost of ownership if their plans change and they decide not to sell.

Prior to buying my 1998 240sx SE back in 2004 I was trying to find a 1988 944 Turbo S/1989 944 Turbo. They'd come up with either low low miles for about $25,000 or interiors that needed a ton of work or incredibly high miles/beat up.

Even now they are incredibly expensive for cherry specimens. A white on red one with all the mods I would have done came up in Georgia a few years ago with something like 7,000 miles on it. The guy wanted $17k I believe. If I had that cash on me at the time I would have bought it.

[StinkyM]

E46 M3's have pretty much bottomed out, just as the E36 M3's have. E46's with the SMG's are still selling in the 17-20k range and the 6spd's carry a small (2-3k) premium over those because of the nightmare stories with the SMG. The ZCP's carry a 5-7k premium over any other M3 since they are more rare. Only 2214 shipped to the US. However, like some have said there is still a few years before anything happens and to be honest I see both the E46 and E92's bottoming out in the 25k-30k range when the new M3 comes out because it is a Turbo car and not a naturally aspirated car. The E46 M3 is claimed as the best M3 by a lot of people and still has a high resale value depending on options and transmission which helps keep the value high. I see it like how the Ferrari 360's are selling. The F1 cars sell at a higher price than the 6 speed manuals, also the mileage and maintenance makes a huge difference. I have been watching the E46 M3 market now for 7 years and this is what I have noticed. Also what you see dealers selling the cars for is usually only a 2-3k dollar markup than what they paid at an auction. As of this past April E46 M3's average was 24-35k depending on mileage, options, etc. So even at auctions they are carrying a high premium.

[bigpuppy]

I don't think the E46 M3 is even close to reaching the bottom yet. I do however think the E46 is going to climb much like the E30 in years to come. I feel like in 15 years if you still have a clean, stock, lower mileage E46 it will be starting to become sought after.
To most enthusiast, it seems the E46 is the pinnacle of the M3 before BMW lost their way creating newer cars that are straying further and further away from the M3s core traits. The newer M3s are becoming better technically however it seems what I consider M3s to be about ended with the E46. For that reason I believe it will have a cult following among BMW purists keeping it fairly sought after.
I drive my E46 M3 too much, it already has 160,000+ miles on it. If I had some extra cash sitting around I would love to get a stock, clean, low mileage Alpine White E46 M3 coupé. I have zero doubt an car like that is a keeper and if 15 years will be holding value.

[dcdude68]

As long as E46 joins the list (at some point) of "icons" like 2002 and E30, nice examples will be in demand. On the other hand, the majority of E30s are worth about $2,000 right now.

[ARDE36]

It all depends on what someone will pay for a car. If someone wants it bad enough than they will pay top dollar for it. Some people wouldn't pay $1000 for a mint E30 M3. On the other hand people will pay top dollar for one because their an enthusiast. Right place at the right time.

[iconoclast]

production numbers alone do not make a collector car or collectible in general. there are many vehicles that were released in north america in small quantities and they didn't become collectors. the fact that many were produced may be beneficial since they were never meant to be collected. people did what they were supposed to do with them... use them. the fact that they were used means they were eventually abused. the more of these vehicles that drive over 75-100k and get beat up and the more the younger crowd consumes them the less clean specimens on the road means the more valuable sub 50k mile cars become. looking back on some of the most popular items over the years and i noticed that things like baseball cards or comics etc climbed in value despite their production numbers. most people didn't bother collecting certain items because they were created in abundance and not cared for. now they are extremely valuable. will the e46 m3 be a collector car? no idea. should you buy it as an investment? probably not. the only way to find out is to wait and see where they are priced in 2035-2040. around that time the generation that was around during the e46 m3 release will be retiring and wanting to revisit something they may had to part with or couldn't afford to begin with and then the hunt begins.

[dcdude68]

we might all agree that the E30 M3 is a modern classic, is done depreciating and might be appreciating.

Boy, was I right about the E30M more than 2 years ago. Would be nice if we all had play money (and garage space!) to put our money where our mouth is...

[RLich8]

M cars that are low miles, unmodified, unmolested, and not crashed will always be worth decent money.

[Evel Knievel]

The bargain basement crappy cars will continue to depreciate but not my much as they have already bottomed out. However nice individual cars with a decent are already starting to pull a premium. E39 M5 prices in the UK have shot up. Same with the E36 M3...they doubled in value in a few years.

[siwon66]

It's year 2016!
And the E46 M3 is still depreciating.
But I believe it will bottom out when the newer generation G30? (or G80?) M3 comes out.

[dworthy]

Well I will say that you have to wait another 5 years before it stabilizes, as the oldest E-46 M-3 is 15 years old now, and the newest is 10 years old. Of course a well taken care of car will always pull more than a beater.

[couchflyer]

What do you guys think, would a converted SMG to manual be worth more than the SMG? Would you have any issues with purchasing a converted manual M3?