New MY14 M6 Competition Pack Owner

[SGM6]

Hello all. Just bought my first M car as a replacement for a Jag XKR. Still getting to grips with all the tech (like being in a different century from the Jag) but enjoying it so far. Any known issues I need to look out for? Got (I think) a good deal on the price from a BMW dealer (8 months old ex demonstrator, just over 2k miles, £50k off..). Hope that's the worst of the depreciation over with? Aim to sell in 2 years - any idea of likely residuals round then? Thanks! Marc

[Schermerhorn]

Nice car. Hope you got an extended warranty on it.

My guess would be £40k if you are lucky after 2 years time.

However, I would keep it. They seem to be very reliable and absolute performance monsters as well.

[theboss]

SGM6 said:

Hello all. Just bought my first M car as a replacement for a Jag XKR. Still getting to grips with all the tech (like being in a different century from the Jag) but enjoying it so far. Any known issues I need to look out for? Got (I think) a good deal on the price from a BMW dealer (8 months old ex demonstrator, just over 2k miles, £50k off..). Hope that's the worst of the depreciation over with? Aim to sell in 2 years - any idea of likely residuals round then? Thanks! Marc

Sounds like a bloody good deal to me! Enjoy!

[JMBMWM5]

So how much did you actually pay and what were the specs?.

[DB77]

Congrats on the new purchase.

50k in 8 months though - just goes to show how painful the depreciation on these cars is. Of course, I am certain everyone goes into an M6 with their eyes open.

[RichardM5]

The only specific thing I'd recommend doing is to grease the outside of the wheel bearings with copper grease, if it's not too late already. The outside of the bearings rust very quickly, especially if they get salt on, if you don't grease them you may have problems getting your wheels off. Its a case of spend a few minuets now to save potential grief later.

[Shaoxter]

DB77 said:

50k in 8 months though - just goes to show how painful the depreciation on these cars is.

I don't think anyone paid anywhere near list price for an M6 though...
But yes these kind of cars do depreciate like a brick in the early years.

[SGM6]

Thanks for the tips. In fact, looking at it again the discount was just over £40k - but thats off list price and, as has been said, I doubt anyone pays list price for an M6. What caught my eye was the car was about the same pice as an M4 which was older and had greater mileage.Enjoying the car now. Lots of grunt and grip, nice ride and pretty comfortable. Steering wheel too thick though and breaks a bit too grabby.

[W8PMC]

SGM6 said:

Thanks for the tips. In fact, looking at it again the discount was just over £40k - but thats off list price and, as has been said, I doubt anyone pays list price for an M6. What caught my eye was the car was about the same pice as an M4 which was older and had greater mileage.Enjoying the car now. Lots of grunt and grip, nice ride and pretty comfortable. Steering wheel too thick though and breaks a bit too grabby.

Simple fact is with these cars & similar marques/models/price is that they lose the VAT on day 1 so on a £100k car their's £20k overnight vanished. Then of course the market is limited by those who can afford a car in this price bracket & more importantly who can afford to run a car of this nature. This shrinks its appeal & thus makes it less attractive so the price becomes a bigger consideration when coming to sell 2nd hand. Those in a positive position can bag a bargain, but let's not forget that most cars nowadays will lose around 40% in the first 2 years (VAT is a big chunk of this) & likely 50-60% overall in 3 years.

Of course exceptions are out there but are few & far between. Also worth noting as said above, the actual OTR price that people pay for these cars new is often far below the list price so again it's all relative.

Sounds like you got a good car at a good price. Enjoy

[Schermerhorn]

Shaoxter said:

DB77 said:

50k in 8 months though - just goes to show how painful the depreciation on these cars is.

I don't think anyone paid anywhere near list price for an M6 though...
But yes these kind of cars do depreciate like a brick in the early years.

Indeed. Mine is the older E63 model and someone paid £87,000 for that back in 2006.

It's now worth maybe £18,000 if I am very lucky. That's near as damn it £70,000 depreciation (or a small house around where I live) over the years.

The chap that came to view my car yesterday remarked that it is AWFUL lot of car for the money and feels brand new and totally premium.

Even when the F1x series M cars become 10 years old, they won't have lost any of their class.

[Wills2]

W8PMC said:

Simple fact is with these cars & similar marques/models/price is that they lose the VAT on day 1 so on a £100k car their's £20k overnight vanished.

That's simply not true VAT isn't lost on the day you drive the car away as it's baked into the price of the car, the market doesn't deduct this when valuing a car for trade in and or resale.

Supply and demand dictates the residual price of a car not VAT.

As an as example:

335d x drive £39,000 traded in against M5 after 16,000 miles and 7 months £34,000, ex VAT invoice £32,500.

[W8PMC]

Wills2 said:

That's simply not true VAT isn't lost on the day you drive the car away as it's baked into the price of the car, the market doesn't deduct this when valuing a car for trade in and or resale.

Supply and demand dictates the residual price of a car not VAT.

As an as example:

335d x drive £39,000 traded in against M5 after 16,000 miles and 7 months £34,000, ex VAT invoice £32,500.

I disagree, although i understand your point & is in some way valid.

The simple fact is a £100k car will be £80k +VAT on the invoice when 1st registered. If this car is then sold 4 weeks later as a used car, the dealer can't (i know certain exceptions exist but not for the masses) charge VAT on that car again so the screen price can't be £80k +VAT & thus is likely to be around the £70-80k mark. I agree the market tends to dictate used car prices & again some exceptions exist, however as a rule of thumb a %age similar to the VAT element of a new cars cost will depreciate out pretty much as soon as the car's registered.

[bigtime]

The dealer will pay VAT on the profit of a second hand car. So if he bought the car for £70k And sold for £75k then the £5k would be subject to Vat.