M6 GC vs M3-residual values

[indus]

Sorry to talk about money but.....

Assuming you can get close to £35k off the rrp of a new M6 GC what would lose more money over three years, the M6 GC with discount or a new M3 at full rrp?

Thanks

[MattUK]

Interesting one, and I've been giving residuals a great deal of thought.. my conclusions;

It all depends what BMW do in the next quarter on the current discounts. As far as I'm aware the discount is there for a specific reason, once the quota is met, then maybe the car will return to full price, and you loose the 18k additional discount from Group which ends at the end of June I believe.

Used GC prices have already been hit, again, no.1 applies here as to what will happen, but at present, if you are financing through BMW, it is actually cheaper to get a new GC than the used ones depending on what options you want.

High end cars, usually take their hit in the first year, with the 35k off, and depending on what happens to the deals, that could actually be the big hit taken off, thus leaving the cars on a fairly evenish balance based on value - Would expect the M3/4 to have a better value for the first 18 months due to demand. M6 isn't really an in demand car, so the market will decide what its values are.. with the GFV of £28k after 4 years that suggests BMW believe it will still hold a fairly good value.

It may be that as more people see them, more compare them to the M5 and decide maybe they prefer the 6, then demand may go up.. the hype around the GC is certainly very positive, much more than the M5.

People may say it shouldn't matter, and I'm usually in that camp as I chop and change fairly often and stay with BMW, so my usual MO is 'I can afford a monthly of x, and I can put in x' whatever fits within that band gets considered. A new M6 would never have fallen into that category, but this deal has put such a car potentially in the hands of a whole different target market than it usually attracts, so that also could effect how things pan out.

Will be interesting to see how many M6's they shift in this quarter under this deal.

[JOHNBMWM5]

Originally Posted by MattUK

Interesting one, and I've been giving residuals a great deal of thought.. my conclusions;

It all depends what BMW do in the next quarter on the current discounts. As far as I'm aware the discount is there for a specific reason, once the quota is met, then maybe the car will return to full price, and you loose the 18k additional discount from Group which ends at the end of June I believe.

Used GC prices have already been hit, again, no.1 applies here as to what will happen, but at present, if you are financing through BMW, it is actually cheaper to get a new GC than the used ones depending on what options you want.

High end cars, usually take their hit in the first year, with the 35k off, and depending on what happens to the deals, that could actually be the big hit taken off, thus leaving the cars on a fairly evenish balance based on value - Would expect the M3/4 to have a better value for the first 18 months due to demand. M6 isn't really an in demand car, so the market will decide what its values are.. with the GFV of £28k after 4 years that suggests BMW believe it will still hold a fairly good value.

It may be that as more people see them, more compare them to the M5 and decide maybe they prefer the 6, then demand may go up.. the hype around the GC is certainly very positive, much more than the M5.

People may say it shouldn't matter, and I'm usually in that camp as I chop and change fairly often and stay with BMW, so my usual MO is 'I can afford a monthly of x, and I can put in x' whatever fits within that band gets considered. A new M6 would never have fallen into that category, but this deal has put such a car potentially in the hands of a whole different target market than it usually attracts, so that also could effect how things pan out.

Will be interesting to see how many M6's they shift in this quarter under this deal.

Agree largely, these deals will not last IMO.
Is the M6 GC a "marmite" Car I don't know.
Whats certain for me anyway is: I can buy one as cheaply or cheaper now than a new specced M5.
It looks and drives IMO with the CP better than the M5.
So in theory should fetch as good if not better RV when resale time comes.
Do petrol prices come into it?, not sure the price today of "brent Crude" is 110.45/barrel so going up, but UK prices being held firm for now.
In my case if I worry about filling it up i should not have bought it in the first place.
That said the economy for such an epic car is frankly great.
I never keep cars more than a year, I promised the wife I would keep the LCI M5 for 2 years that went out the window once these "super deals" came up.
Lets face it I would never even look at the M6 GC for book price.
So a good deal if thats the car you like and depreciation for the first year is largely taken care of IMO.

[dnw]

3 year / 30,000 mile residuals from bmw.co.uk:

M3 DCT £27,000.00
M6GC £32,782.50

Assuming full list price for M3 DCT (£58,685) that's £31,685 in depreciation
Assuming £18k + additional 12% off a M6GC (£68,368) that's £35,585 in depreciation

...so £4k more. That's before you add on the options to the M3 that are standard on M6 (if you want them... LED lights, HUD, CF , Harman Kardon) - add those in and there is about £500 difference as they add next to nothing to resale...

[indus]

Thanks for your thoughts Matt/John, very helpful.

dnw, I was doing a similar calculation in my mind last night! ( but without the official residual figures). When I've specced the M3 up it comes to about £62k and the M6GC comes to £100405.

So as you say the depreciation figures get very very close. I would have never considered the M6 GC at anywhere near full price. The M3 is more my financial level of car but I can't see any discounts being available on that for at least 18 months.

Thanks again

[M6-Coupe]

Originally Posted by dnw

3 year / 30,000 mile residuals from bmw.co.uk:

M3 DCT £27,000.00
M6GC £32,782.50

Assuming full list price for M3 DCT (£58,685) that's £31,685 in depreciation
Assuming £18k + additional 12% off a M6GC (£68,368) that's £35,585 in depreciation

...so £4k more. That's before you add on the options to the M3 that are standard on M6 (if you want them... LED lights, HUD, CF , Harman Kardon) - add those in and there is about £500 difference as they add next to nothing to resale...

wow numbers are ridicules over there! Do you mean the residual value for a 100K M6GC after three years is 33K ? %33? and %46 for M3?

[JOHNBMWM5]

Originally Posted by M6-Coupe

wow numbers are ridicules over there! Do you mean the residual value for a 100K M6GC after three years is 33K ? %33? and %46 for M3?

Yes thats what he means BUT we only pay 63.5 % of the cost of a new M6 GC,so it evens out.

[indus]

I'm having a classic case of man maths. At those figures it seems stupid NOT to buy this car.

I was looking to buy the M3 but the GC will come out at about the same price and then about the same depreciation. Given the GC is a more 'special' and less common car I can't think of a reason NOT to buy one

Did you guys manage to negotiate a discount off the options as well?

Thanks

[JOHNBMWM5]

Originally Posted by indus

I'm having a classic case of man maths. At those figures it seems stupid NOT to buy this car.

I was looking to buy the M3 but the GC will come out at about the same price and then about the same depreciation. Given the GC is a more 'special' and less common car I can't think of a reason NOT to buy one

Did you guys manage to negotiate a discount off the options as well?

Thanks

That was my total, they are not giving these cars away, and these deals are about to dry up as volumes have almost been met, so hurry or miss the boat.
Not many dealers are willing to play now.

[M6-Coupe]

Originally Posted by JOHNBMWM5

Yes thats what he means BUT we only pay 63.5 % of the cost of a new M6 GC,so it evens out.

I got your point about discount, but I mean %33 residual is toooo low!. Here in US the residual value for M6GC is %57-59 (the program will change almost every month or so) with the same 3 years/10k mile per year!

[JOHNBMWM5]

Originally Posted by M6-Coupe

I got your point about discount, but I mean %33 residual is toooo low!. Here in US the residual value for M6GC is %57-59 (the program will change almost every month or so)

TBH I never worry about RV, I just hunt the best deals and go.
3 years is a lifetime for me, never keep cars that long.

[MattUK]

Snap John...

The deals get me interested, as long as the monthlies fit where i want to be, ill get it, and trade it when it comes to it.

In my 20 years of cars, Ive only 'made' money on one of my BMW's and that was the E60 as I got one of the first cars, and sold it after 6 months when the demand and premiums were there, and the markets and financial markets hadn't collapsed.

The one thing to keep in mind here (and really at this price range im not sure it would be that bigger a problem) is that markets may be coming back, but we are still some way off.. but if someone can afford to pay 100+ for a new one, they're probably not worried anyway.

For me.. its a blessing, and I get to drive something I want.. as John says, get in quick, got mine all sorted today, but when theyre gone, theyre gone!

[indus]

Thanks John.

Does anybody know of a dealer that has a demo GC around London/M25/home counties etc?

Cheers

[indus]

Originally Posted by JOHNBMWM5

Yes thats what he means BUT we only pay 63.5 % of the cost of a new M6 GC,so it evens out.

Hi John

Just so that I'm clear, did you pay 63.5% of the total cost of the optioned car? Or was it 63.5% of the base car and then options all at full price?

Many thanks

[JOHNBMWM5]

Originally Posted by indus

Thanks John.

Does anybody know of a dealer that has a demo GC around London/M25/home counties etc?

Cheers

Pick your dealers and they should get a loaner from BMW UK.

[JOHNBMWM5]

Originally Posted by indus

Hi John

Just so that I'm clear, did you pay 63.5% of the total cost of the optioned car? Or was it 63.5% of the base car and then options all at full price?


Many thanks

All options total price 63.5% of that price.
Included number plates on the road ect.

[indus]

Originally Posted by JOHNBMWM5

Pick your dealers and they should get a loaner from BMW UK.

Thanks. I've done that before with BMW and sometimes it takes them ages to get the car in. I thought it might be easier just to track down a dealer that has their own one.

[indus]

Originally Posted by JOHNBMWM5

All options total price 63.5% of that price.
Included number plates on the road ect.

Thanks. Would you mind telling me which dealer you used?

[JOHNBMWM5]

Originally Posted by indus

Thanks. Would you mind telling me which dealer you used?

No point as they will NOT give you the same deal, I spend a lot with them and they treat me a bit different.
Specialist Cars Luton is your best bet. if you live down south.
PS) I had to do a lot of arm twisting and threatened to go elsewhere before I got a late phone call.