M2 - is an Oct 2016 good value

[bladerunner1968]

Guys, is an Oct 2016 DCT Grey car with 16k miles reasonable value at £32.5K privately? Options are HK, heated electric seats,Apple carplay, enhanced bluetooth, wireless charging

What % depreciation range would this be affected by if say I keep for 2 years?

Cheers.

Edited by bladerunner1968 on Sunday 2nd September 21:32

[R33FAL]

Suspect £10k over 2 years would be a reasonable assumption.

[bladerunner1968]

Ok thanks. So the current value is right then I assume based on the 66 plate being 2 years old from September 5th? This is the price after haggling btw.

If so the M2's depreciation doesn't look too bad really currently to me

Edited by bladerunner1968 on Monday 3rd September 07:26

[andyman_2006]

Seems like a good buy to me, most dealer cars are currently north of £35k.

Cheapest car i've ever seen was a private, manual, Cat D car at £30K

One way to work out where expected values are likely to go, is to price up a new one at similar spec on PCP with a dealer, and see what they set the GFV at for say 4 years time with a 40K avg miles, the GFV set by say bmw finance and is usually the balloon or CAP price worst case should you bail on the deal and they need to recoup their monies, and also the price you would no doubt trade back in at the end of that PCP deal and buy the next one.

If your worried about values though, buy a low mileage 1M coupe - not at £32K mind, but 1M's at £40K would i suspect represent a sound investment in future years.

Edited by andyman_2006 on Monday 3rd September 12:13

[JNW1]

andyman_2006 said:

One way to work out where expected values are likely to go, is to price up a new one at similar spec on PCP with a dealer, and see what they set the GFV at for say 4 years time with a 40K avg miles, the GFV set by say bmw finance and is usually the balloon or CAP price worst case should you bail on the deal and they need to recoup their monies, and also the price you would no doubt trade back in at the end of that PCP deal and buy the next one.

Or perhaps just have a look at the GFV's on PCP's for 2016 66-plate cars on the AUC website? Based on 10k miles/annum they seem to be at around £23k after 30 months so unless the OP is going to put a lot of miles on each year I reckon depreciation should be less than £10k over the next two years based on a purchase price of £32.5k - doesn't seem too bad for that type of car!

[R33FAL]

JNW1 said:

Or perhaps just have a look at the GFV's on PCP's for 2016 66-plate cars on the AUC website? Based on 10k miles/annum they seem to be at around £23k after 30 months so unless the OP is going to put a lot of miles on each year I reckon depreciation should be less than £10k over the next two years based on a purchase price of £32.5k - doesn't seem too bad for that type of car!

I suspect GFV forecasts arent particularly sophisticated. I would be amazed if they factor in things like whether the car is LCI/non-LCI or the fact the M2 competition is just hitting dealerships now.

[andyman_2006]

R33FAL said:

I suspect GFV forecasts arent particularly sophisticated. I would be amazed if they factor in things like whether the car is LCI/non-LCI or the fact the M2 competition is just hitting dealerships now.

GFV on the 1M at the time didnt really make much sense, as they only had the 135I coupe to base it on, and thats how it was explained to me,so when i was offered a 1M build, and on PCP at 3.8% APR, its GFV was £12600!! which as we know today seems daft, but thats all they thought it would be worth after 4 years 40K. M2 has been around long enough (2 years) for BMW finance to get a handle on the re-sale market for them used so i would expect it to be closer and more relevant than for limited ed 1M cars.

We all know the M2 wont retain anything like the values the 1M does as they are making too many of them, i'll wager it wont make that much diff whether LCI/non LCI as at end of day there are plenty to choose from used its already a buyers market.

If i was buying one, I would just expect the worst depreciation wise, its a worst case scenario and anything you get back over that can be a bonus in future, 1M residuals wont be repeated any time soon i'll bet.

[bladerunner1968]

Thanks Guys - good suggestion on the GFV - similar AUC cars are getting GFV of 21K in three years.

I'm in it to enjoy the car more - fortunately the Mrs is not on PH..

[JNW1]

R33FAL said:

JNW1 said:

Or perhaps just have a look at the GFV's on PCP's for 2016 66-plate cars on the AUC website? Based on 10k miles/annum they seem to be at around £23k after 30 months so unless the OP is going to put a lot of miles on each year I reckon depreciation should be less than £10k over the next two years based on a purchase price of £32.5k - doesn't seem too bad for that type of car!

I suspect GFV forecasts arent particularly sophisticated. I would be amazed if they factor in things like whether the car is LCI/non-LCI or the fact the M2 competition is just hitting dealerships now.

You may well be right but I suspect BMW GFV's tend to be set at the cautious end of the spectrum and are therefore more likely to be worst case scenario than over optimistic. Could be wrong but I doubt the OP will take a financial pasting on depreciation if he pays £32.5k for a decent spec 66-reg M2 with 16k miles on the clock!