Are BMW M2 actually changing hands at a premium ?

Are BMW M2 actually changing hands at a premium ?

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Discussion

Bigman1981

Original Poster:

15 posts

91 months

Tuesday 2nd August 2016
quotequote all
I'm curious to know if the m2's are actually changing hands at a premium? If so what are peoples opinions on the longevity of this ?

cheers

Schermerhorn

4,342 posts

188 months

Tuesday 2nd August 2016
quotequote all
Bigman1981 said:
I'm curious to know if the m2's are actually changing hands at a premium? If so what are peoples opinions on the longevity of this ?

cheers
The "waiting list" on these types of cars are very elastic. Dealers tell you its 18 months but all of a sudden cars become available in 3 months and a saturation occurs in the market, prices drop, premiums disappear and you see loads of them out and about. In reality, they are not limited edition cars and there will be over-production, cold feet, reneging on deposits etc which will leads to lots becoming available with the first 2 years of production.

Always play the waiting game.

disad-vantage-d

813 posts

219 months

Tuesday 2nd August 2016
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I don't have any first hand knowledge of this. However, I have been watching these on Autotrader for the last few months. Initially, there were a number of cars which were advertised at a premium and now are no longer present, presumably sold.
There are other cars currently advertised, some at only a slight premium over list and others, which to my mind, are more optimistically priced.
I am suspecting that in the first few months those that just had to have one 'right now' have their cars courtesy of those selling at a premium. Perhaps that element of the market is now largely exhausted and things have slowed down?


Bigman1981

Original Poster:

15 posts

91 months

Tuesday 2nd August 2016
quotequote all
i tend to agree,

i currently drive an m4

i randomly got a call from my BMW dealer saying we have been allocated a slot in October because of the amount of cars we have sold , my thing was , great get rid of m4 ( which is amazing ) get into something different and maybe have years free driving but as you said above this is not limited production at all.

i think in reality i could keep the m4 another year and easily pick an m2 up with a discount.

i got 15% off my m4 and even if you are the biggest hater of m4 u still have to question the sanity of anyone paying a 5-10kt premium for an m2 ..... ie that's m4 money


zedstar

1,734 posts

175 months

Tuesday 2nd August 2016
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I got wind of one being offered at list price at a dealer for Sep delivery, I was all set to go for it but I didn't want to pay for a couple of the dealer extras - so that never happened!

I then contacted a broker I used last week to get my friend an A45, his BM contact came back and said March 2017 for a car. Now to be fair that is a bit of a wait but i don't think its 2 years worth. I think cars are changing hands at a premium but not the ones advertised. I think a private punter would be lucky to get back list price!

Kananga

1,079 posts

155 months

Thursday 4th August 2016
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even if the M2 isn't a limited edition, is it likely that there will be far fewer cars out than the M3/M4?


disad-vantage-d

813 posts

219 months

Thursday 4th August 2016
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Kananga said:
even if the M2 isn't a limited edition, is it likely that there will be far fewer cars out than the M3/M4?
There is no specified number of M2s to be built. However, capacity to build them at the factory is physically limiting the number able to be produced. Hence the limited availability and waiting lists.

JNW1

7,696 posts

193 months

Friday 5th August 2016
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I quite like the look and size of the M2 but with a few extras and no discount you quickly get to £50k and for not a lot more than that you could get an M4. Each to their own but for me that doesn't really stack-up as a sensible deal financially; however, if the M2 market settles down - and discounts become available at a similar level to the M4 - it becomes a more tempting prospect. The M2 isn't going to be a limited run car like the 1M and I don't see the residuals being anything like as strong; therefore, paying a premium to get one is a recipe for a financial soaking in my view....

nwates

376 posts

183 months

Friday 5th August 2016
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Bought one at a premium it's awesome

TuonoPants

273 posts

143 months

Friday 5th August 2016
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JNW1 said:
I quite like the look and size of the M2 but with a few extras and no discount you quickly get to £50k and for not a lot more than that you could get an M4. Each to their own but for me that doesn't really stack-up as a sensible deal financially; however, if the M2 market settles down - and discounts become available at a similar level to the M4 - it becomes a more tempting prospect. The M2 isn't going to be a limited run car like the 1M and I don't see the residuals being anything like as strong; therefore, paying a premium to get one is a recipe for a financial soaking in my view....
This assumes that you actually want an M4. I've got an M2 on order which is spec'ed at £48K, I have no interest in paying a bit more for an M4. I also have no interest in paying a premium to get one early.

kezsan

78 posts

151 months

Friday 5th August 2016
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It will be interesting to see the impact on values for the M2 and other cars that just sneak over the £40k Bracket in April 2017 when there are additional taxes to pay.

I think this is right looking at the tax bands for a manual M2 (199g/km)

Pre April 1st 2017
Year 1 - £490
Every Year- £265
5 Year total - £1550

Post April 2017
Year 1 - (£1200 + £310) £1510
Next 4 years (£310 + £140) £450 per year
5 Year total - £3310

That first year is a stinker so it certainly gives the new car buyer, post April 2017 something to think about and that might help pre April 2017 used values. If its a used pre April 2017 vs used post April 2017 option then its £450 vs £265 for 4 years until the post April 2017 car then drops to £140 a year road tax so much less of an impact.

I think the DCT (185g/km) model sneaks into the lower bracket so its first year is £400 cheaper which offsets the extra cost of DCT a little. Will that mean less Manual M2's after April 2017?

Maybe it won't matter, people will buy what they want but I think it will have an impact, particularly on cars near the 40k threshold, if you are spending a 100k this matters less purely as a proportion of purchase price.

nickfrog

20,814 posts

216 months

Friday 5th August 2016
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kezsan said:
It will be interesting to see the impact on values for the M2 and other cars that just sneak over the £40k Bracket in April 2017 when there are additional taxes to pay.
Do you know what £40k refers to ? Base list price ? List price with options ? Actual transaction price as per invoice ?

KenC

691 posts

234 months

Friday 5th August 2016
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nickfrog said:
kezsan said:
It will be interesting to see the impact on values for the M2 and other cars that just sneak over the £40k Bracket in April 2017 when there are additional taxes to pay.
Do you know what £40k refers to ? Base list price ? List price with options ? Actual transaction price as per invoice ?
List price plus options.

JNW1

7,696 posts

193 months

Saturday 6th August 2016
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TuonoPants said:
JNW1 said:
I quite like the look and size of the M2 but with a few extras and no discount you quickly get to £50k and for not a lot more than that you could get an M4. Each to their own but for me that doesn't really stack-up as a sensible deal financially; however, if the M2 market settles down - and discounts become available at a similar level to the M4 - it becomes a more tempting prospect. The M2 isn't going to be a limited run car like the 1M and I don't see the residuals being anything like as strong; therefore, paying a premium to get one is a recipe for a financial soaking in my view....
This assumes that you actually want an M4. I've got an M2 on order which is spec'ed at £48K, I have no interest in paying a bit more for an M4. I also have no interest in paying a premium to get one early.
The only point I was making was that an M2 at list price with a few options is straying very close to M4 money post-discount. You're obviously not interested in an M4 (which is fair enough!) but I imagine one of those would be on the list of contenders for many people who are looking to spend £50k on a sports coupe (as would an M2); in effect, therefore, the M2 and M4 potentially become direct competitors even though their list prices would suggest they're in slightly different markets. That doesn't mean someone should just choose the M4 (the M2 certainly has merit over its bigger brother in some respects) but the idea of paying a premium for one (which was the question posed by this thread) doesn't really gel with me; in all probability it isn't going to hold its value like a 1M (so financially paying a premium doesn't make sense) and once the initial rave reviews have passed I suspect price will move closer to the BMW norm (which probably means at least a modest discount off list will be available this time next year). I very much like the M2 (feels like it would be closer to the character of my much loved E46 M3 CS than an M4) but you'd have to want one very badly to pay a premium over list IMO....

nwates

376 posts

183 months

Saturday 6th August 2016
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Could turn out to be a great investment

jontykint

783 posts

128 months

Monday 8th August 2016
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nwates said:
Could turn out to be a great investment
"Investments may go down as well as up"

"You may get less back than you have invested"

"Not a guaranteed return on investment"

etc...etc...


Alpinestars

13,954 posts

243 months

Monday 8th August 2016
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I sold mine to a dealer exactly a week after I bought it (underwhelmed by it). I got lucky and sold it for a small (2.5k) profit, but I know the dealer ended up having to sell it at list. If early cars were difficult to shift at a profit, I can't imagine many selling at a premium now.

I also know of a friend who sold his not long after I sold mine. Less than list.

MrBarry123

6,025 posts

120 months

Tuesday 9th August 2016
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I spoke with my local dealer a few days ago and they're quoting a 18-24 month wait on new cars however don't expect BMW to begin limiting orders anytime soon.

I then spoke with the specialist broker I've used before and from what he's said it seems like dealers are happy to let the "used" examples go for list price i.e. they're not holding out for the silly prices on AT at the moment.

As an aside, I saw one at Swinley Forest on Sunday morning and it looked really very, very good.

giger

732 posts

193 months

Tuesday 9th August 2016
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I may be backing out of my manual M2 which is due for delivery December/January. I drove a DCT earlier in the year and was quite underwhelmed, I finally got a drive in a manual a few weeks ago and TBH wasn't as excited as I should have been. Great as a fast daily, not so great a something special sat in the garage (which this would be) for an occasional blast.

Alpinestars

13,954 posts

243 months

Tuesday 9th August 2016
quotequote all
giger said:
I may be backing out of my manual M2 which is due for delivery December/January. I drove a DCT earlier in the year and was quite underwhelmed, I finally got a drive in a manual a few weeks ago and TBH wasn't as excited as I should have been. Great as a fast daily, not so great a something special sat in the garage (which this would be) for an occasional blast.
What didn't you like about it?