M2 OG Values

[shuebc]

Hey all

I know the used car market is high, but what’s everyone’s thoughts on M2 Mk1 pre LCI values?

A manual M2 cost just short of £44k back in 2016 new. But prices for a low mileage (sub-30k miles) M2 start at £33K+, if not more like £35k on average. And high mileage ones 60k miles are around £30k.

I know prices are dictated by demand, but is anyone really going to pay £30k for a 60k miler?

Especially when a high mileage R8 can be had for £30-35k privately (yes I had someone offer to sell their very well maintained r8 for 30k (70k miles).

I really wanted to go for an m2 but feels silly to pay so much for a something with so many miles on them. And whose buying m2s at that price? Most the m2s seem to be just sitting there.

Are prices likely to stay high on m2s? Or will the prices crash as soon as the new M2 drops in 2022?

[Jimmy No Hands]

It's COVID backlash. Everything will drop eventually. It's up to you what you feel comfortable spending.

[Court_S]

Yeah, prices are nuts.

I had a check last week and a 2016 AUC was c.£36k. They’ve gone up loads since the start of last year.

An M2 was the obvious upgrade from my M140i but balls was I paying the current prices. I’m waiting it out so chopped the 140 in for an old 130.

[PTF]

I bought a 66 plate manual M2 in long beach blue a few weeks ago. 47k miles. Paid £32k. From a respected non-franchise dealer.

I really wanted an AUC one with 20-30k miles to keep it well under the 60k mile warranty changeover point, but they were £36k+.

Man maths at play as i knew i was paying about £5k more than i would have without covid.

Also the spec of the car i went for was exactly what i would have spec'd from new:
- Adaptive headlights with high beam assist https://www.youtube.com/watch?v=CBUYm5AghVI&ab...
- Heated electric memory seats with electric lumbar adjustment
- Harmon Kardon
- Folding mirrors
- Sun protection glass
- Rear parking sensors

I didnt want DCT, or a reversing camera, or a sunroof. So was happy that they weren't spec'd.

We sold my wife's focus for £2k-£3k more than i predicted it would be worth by now, so that softened the blow somewhat.

For me personally the timing was right. Recent plans for our house, my job situation, and being able to fund a chunk of it via tesco at 3%.

This was an upgrade from a low spec early M135i, (which my wife has taken off me). So the jump to M2 was hard to justify. I considered a high-spec M140i at £20k, but that felt like a compromise, so decided to go for it.

IMO the M2 will always hold a £8k-£10k premium over an Mx35i/Mx40i. They seem to hold a base price of £10k even with 100k+ miles. So i'm working on the basis that this will hold £18k-£20k in 4-5 yrs time. I can live with a £2k-£3k per year drop.

Anyway. The OG M2 is absolutely epic, and a sufficiently wide gap from the M135i to not feel like i've made a mistake. Very pleased with it.

I tried an M4, but AUC PCP quotes showed a predicted depreciation which put me off. The M2s have much higher guaranteed future value, plus cheaper running costs (i'm getting mid 30s MPG so far).

I wanted an AUC for the warranty, but after talking to BMW about their warranty i decided to just put money aside and pay for repairs myself once the dealer warranty expires. I justified it as follows: i have had 2x M135is that have been 100% reliable with the M2 using that package as a base yet with stronger engine internals. Manual gearbox is more reliable than DCT. No adaptive dampers. BMW charge a flat warranty rate on M cars, whether a relatively simple M2 or a complex M8, so i felt that i would be subsidising more complex M cars.

A manual in LBB has been a poster car for me for ages. And i'm very happy that i was finally in a position to buy one, even if i may not have timed it perfectly.

Edited by PTF on Monday 11th October 12:13

[nickfrog]

PTF said:

I wanted an AUC for the warranty, but after talking to BMW about their warranty i decided to just put money aside and pay for repairs myself once the dealer warranty expires. I justified it as follows: i have had 2x M135is that have been 100% reliable with the M2 using that package as a base yet with stronger engine internals. Manual gearbox is more reliable than DCT. No adaptive dampers. BMW charge a flat warranty rate on M cars, whether a relatively simple M2 or a complex M8, so i felt that i would be subsidising more complex M cars.

You make a good point - I bought AUC when they were cheap and I renewed after 12 months for £995 fully comp.

I am not sure I will renew next year though for the reasons that you state although the rate is not quite flat between M cars but still there is probably an element of subsidy in there.

As for the OP, I still think they were under-priced at the bottom of the market almost 2 years ago irrespective of the C19 effect, which has just compounded an underlying firming up of values. Even at £35k AUC for a relatively low miler, there is not much else to compete with it IMO.

I don't think the new M2 will have any effect on values. It's often the opposite that happens as the launch will promote the M2 "brand" and also entice people to look at £30k used cars rather than £60k new cars.

Edited by nickfrog on Monday 11th October 10:35

[PTF]

nickfrog said:

I am not sure I will renew next year though for the reasons that you state although the rate is not quite flat between M cars but still there is probably an element of subsidy in there.

Nope. I spoke to BMW's warranty people. The M car rate is flat across all M models.

[kick buttowski]

When the M2 first came out it was in great demand, with a 12 month waiting list and some huge premiums on used cars. Who remembers cars advertised at £10k plus over list?

I was always a bit surprised to see early car values drop so low and some people must have lost a fortune.

[nickfrog]

PTF said:

Nope. I spoke to BMW's warranty people. The M car rate is flat across all M models.

It looks like you're right which I think is ridiculous as the UW should be able to use the claim experience data to refine it, probably not worth it for them though.

[PTF]

nickfrog said:

PTF said:

Nope. I spoke to BMW's warranty people. The M car rate is flat across all M models.

It looks like you're right which I think is ridiculous as the UW should be able to use the claim experience data to refine it, probably not worth it for them though.

Yeah it's not based on claim/risk per model at all, which kind of negates the whole point of paying for the warranty/insurance. Personally after a bullet proof experience of E36 328i, E92 325i, 130i, 2x M135i, i'm not too keen to be subsidising the warranties of the more complex M models with M engines with multiple turbos, active dampers, DCT gearboxes, etc.

One bonus of the OG M2 is the N55 engine is well proven.

On mine, because i've not gone for an AUC, the cost to get it back under BMW warranty is very expensive, which adds to my reasoning to simply not bother.

I contacted WarrantyWise and they will cover it for a much lower cost, and i can buy that for 3 yrs cover in one hit, so once i go over 60k miles it won't increase, but i'm still inclined to not bother.

Edited by PTF on Monday 11th October 11:06

[AeroWagon]

I looked at getting a AUC M2 (67 plate, 40k miles) a few months back to replace my M240i (which I reluctantly sent back at the end of it's PCP in March) but felt the price was £3-4k inflated due to COVID so backed out. Will revisit again next Spring when prices have 'hopefully' dropped back

[PTF]

nickfrog said:

I don't think the new M2 will have any effect on values. It's often the opposite that happens as the launch will promote the M2 "brand" and also entice people to look at £30k used cars rather than £60k new cars.

Here's hoping. Though for the first time in ages i have absolutely no desire to change a car form the next best thing. I genuinely can't think of anything to replace it.

For me it ticks so many boxes it's just perfect.
- It looks amazing
- It feels genuinely special
- 4 seats so i can use it as a daily for the kids, etc
- Comfy enough for the commute
- I can track it occasionally and it will cope fine
- Mid 30s mpg so i'm not cursing it when using it!
- Non-carbon roof, so i can fit roof bars for carrying bikes

They are great things and i'm really pleased i went for one rather than compromising on an M140i

[CRA1G]

shuebc said:

Hey all

Are prices likely to stay high on m2s? Or will the prices crash as soon as the new M2 drops in 2022?

I have a New M2 on order and have been told it isn't due to be launched until mid 2023. The 240i X Drive is due first in Jan 22 which I've spec'd up.i can't see there been any crash in prices on the og M2's, I'm not sure if I will sell mine or not when the 240 arrives as I think I'll miss it even though the 240 will have more BHP and there's talk of the new M2 being close to 500BHP.....

[ST66N]

When the M2 first came out demand exceeded supply and they were priced pretty firm. After they did the LCI they started to produce a lot more cars and towards the end of the LCI there was plenty of supply and some very good lease deals. Once the M2C came out, values on second hand cars dropped, partly due to the recent oversupply and partly due to the N55 being the "old" engine. BMW did a good job of talking up how significant an "improvement" the M2C was. Values have probably corrected a bit compared to the M2C because there is still a lot to like about the older cars.

[PTF]

I tried an M2C and was completely underwhelmed by it, not helped by the DCT box being dim-witted. I didn't like the "udders" hanging down from the back end. And it sounded rubbish.

I would possibly consider an M2C if it had a manual box and an aftermarket silencer, but manual M2Cs were late-£40ks last time i looked, and none had an aftermarket silencer. Such a shame that the adoption of the S55 engine and the changes to emissions regs came along at the same time.

Little matter though, a manual OG M2 is something quite special IMO, and an absolute steal at around £30k.

Edited by PTF on Monday 11th October 11:35

[CRA1G]

Mines got a Scorpion back to Cat Exhaust which was on when I purchased it which sounds awesome but not sure it's worth near on two grand though....?

[shuebc]

Yeh I’m surprised garages are charging so much for high milers tho - like 30k for 60k miler… I know I’d never pay that much for a high miler and I can’t see many others paying that much either.

When I was looking at prices back in March April, 30k was getting you a proper low mileage M2, there was even one with 10k miles on it going for 31k. So I can only assume there are people buying them at the inflated prices (even tho same ones seem to be still on sale for the last 2 months).

I was first absolutely set on an M2, but now I’m thinking if I have to go upto 35k for a low miler, I may as well go for full on sports car (I.e. R8 / 997 or even a Cayman R, all infinitely more special (but obviously less usable day to day and more expensive to run - but more likely to hold onto more if it’s value long term if not appreciate in value at some point.

Anyway let’s see what happens in next couple of months… agree it’s a special car… but more special than an R8, Cayman R or 997.2 (yes I know 997 in a lot higher price bracket)? Defo not

[nickfrog]

^^^ you make a good point about the R8 and perhaps even more so the R. They will be more special to drive. The M2's strength is its versatility. If you push your reasoning though you end up with a Caterham 400R.

I would however say that the £35k price AUC price point still represents good value, particularly if you prefer the front engine experience.

[bencollins4]

shuebc said:

Yeh I’m surprised garages are charging so much for high milers tho - like 30k for 60k miler… I know I’d never pay that much for a high miler and I can’t see many others paying that much either.

When I was looking at prices back in March April, 30k was getting you a proper low mileage M2, there was even one with 10k miles on it going for 31k. So I can only assume there are people buying them at the inflated prices (even tho same ones seem to be still on sale for the last 2 months).

I was first absolutely set on an M2, but now I’m thinking if I have to go upto 35k for a low miler, I may as well go for full on sports car (I.e. R8 / 997 or even a Cayman R, all infinitely more special (but obviously less usable day to day and more expensive to run - but more likely to hold onto more if it’s value long term if not appreciate in value at some point.

Anyway let’s see what happens in next couple of months… agree it’s a special car… but more special than an R8, Cayman R or 997.2 (yes I know 997 in a lot higher price bracket)? Defo not

As Nick says, what sort of car are you after? Yes, you could get an R8 (but not a decent Cayman R) for £35k, but it won’t do the every day car thing as well as an M2. I think you’ll find those cars have also gone up. It will also cost you a heap to run albeit not likely to depreciate much if at all.

Whether the current market price is inflated or not has been done to death but yes, everything has gone up. Again, difficult to say regards future values at this point.

I think the point of the M2 and most M cars is they can do it all where as unless your mileage is pretty minimal you will want a more practical car to go with it. Every car is a compromise and it depends what best works for you.

[interstellar]

CRA1G said:

Mines got a Scorpion back to Cat Exhaust which was on when I purchased it which sounds awesome but not sure it's worth near on two grand though....?

Great plate!

[PTF]

shuebc said:

Yeh I’m surprised garages are charging so much for high milers tho - like 30k for 60k miler… I know I’d never pay that much for a high miler and I can’t see many others paying that much either.

30k-60k is high miles now?

I'd happily run mine to 200k+

Not sure i'd do that with an R8 though!