[PandaMobile]

General Rule is to never buy a luxury car, you lease them.

[Transfer]

BMW thinks these things will depreciate 40% over 3 years on a lease or at least that's how they are priced. I would guess they will depreciate a little more than that and possibly even 50%. Throw in the full tax on a purchase vs tax on lease portion only in most states (10% tax in WA is not trivial) and buying one outright makes even less sense if you swap cars every 3-4 years. Additionally, with discounts flying around anywhere from 4-15% off, if you end up purchasing at the lower discount end you'll really be behind the numbers game in 3 years.

No way around it, these are depreciating assets and are poor financial choices no matter how you look at it. If we really cared deeply about that we would all buy cheap Hondas instead. However, I won't drive an econobox so I'm leasing this BMW.

[530iDriver]

Originally Posted by Transfer

BMW thinks these things will depreciate 40% over 3 years on a lease or at least that's how they are priced. I would guess they will depreciate a little more than that and possibly even 50%. Throw in the full tax on a purchase vs tax on lease portion only in most states (10% tax in WA is not trivial) and buying one outright makes even less sense if you swap cars every 3-4 years. Additionally, with discounts flying around anywhere from 4-15% off, if you end up purchasing at the lower discount end you'll really be behind the numbers game in 3 years.

No way around it, these are depreciating assets and are poor financial choices no matter how you look at it. If we really cared deeply about that we would all buy cheap Hondas instead. However, I won't drive an econobox so I'm leasing this BMW.

Either you lease them new or buy them 1-3 years old and keep the car 7-10 years.

[Damage Inc]

Originally Posted by _robert_

There's a reason people lease with all those incentives. You're going to lose a lot of money, simple fact. Especially on a non-discounted new car.

Why not get a 2015-2017 F80 M3 with 10-25k miles for 50-60k, do bootmod3 stage 1 for 80 extra hp, and call it a day? Will even keep up with a G80 M3 on a highway.

+1
Put snow tires on the M3 and you'll be fine.
M3 will depreciate less.
Drive the M3 for a year, wait for a 340i to drop 25% in year 1. Then pick one up used.

These 3 series have gotten so expensive you cannot buy one new, or take a 50% hit in 3 years. So $60k new, $34k depreciation and taxes, divided by 36 months = $850 a month not including tax. Lots of cash for a 3 series!

[Damage Inc]

Originally Posted by PandaMobile

General Rule is to never buy a luxury car, you lease them.

Correct. You buy them 1.5 years old for 25 to 30% discount with 3 years of warranty left

[bimmer456]

Wait a couple years get M340ix with 19k miles for $25k

[530iDriver]

Originally Posted by bimmer456

Wait a couple years get M340ix with 19k miles for $25k

That's a bit ambitious, but could still happen.

[Transfer]

Originally Posted by 530iDriver

That's a bit ambitious, but could still happen.

With a rebuilt title maybe. Otherwise highly doubtful. But who knows maybe EVs or SUVs will have taken over the world in the next 3 years.

[Pauleebe]

Originally Posted by bimmer456

Wait a couple years get M340ix with 19k miles for $25k

No way.

Even if it's a lightly equipped M340 xDrive (Base MSRP being 56K, so let's say 60K as MSRP including average options), and assuming market value performs worse than BMWFS's residual value calculations, you're still looking at paying 36K for a 3 year old MY340 with 30K on it.

Even looking at a MY16 340 with 55K on it, the discount offered is below 50% off:

https://www.passportbmw.com/used-Mar...8B7C57GK368569

[bimmer456]

Originally Posted by Pauleebe

No way.

Even if it's a lightly equipped M340 xDrive (Base MSRP being 56K, so let's say 60K as MSRP including average options), and assuming market value performs worse than BMWFS's residual value calculations, you're still looking at paying 36K for a 3 year old MY340 with 30K on it.

Even looking at a MY16 340 with 55K on it, the discount offered is below 50% off:

https://www.passportbmw.com/used-Mar...8B7C57GK368569

I should sell my car now if I can get 33k. Only paid $45k brand new.

[bimmer456]

Originally Posted by 530iDriver

That's a bit ambitious, but could still happen.

Need to find a private party that's eager to sell.

[530iDriver]

Originally Posted by bimmer456

Need to find a private party that's eager to sell.

Good luck with that.

[Joro2819]

Originally Posted by Jadenkid22

How do you guys think the depreciation on a 2020 will be ?

I have never bought a brand new car, and I'm really scared of buying something at 60k and next year it's barely worth 40k. I currently drive a 2013 328i and I debate mentally everyday about getting a 2016 340i for 30k or a 2020 M340 brand new.

With my specs MSRP is 60k on the dot

If I can pull off 5% off I would definitely do it

Are you planning on keeping this car for a long time? If so, who cares if it will depreciate a lot.
Sometimes we can be to analytical when buying a car and it takes all of the fun out of enjoying the car. If you are going to dump in a few years, lease it but if you are not used to leasing and this is a one off, I would not do it.
A lot of people on this forum have more time then money and vice versa.

They will find a way to talk you out of heaven.

[myersrw]

I fully loaded a M340i Xdrive on the BMW USA website and the price was about $69,000. When I went to the Canadian website the same car with all the same options was about $57,000 U.S. Why? Why is the car so much cheaper in Canada. Even options like the Tanzanite Blue II paint is over $700 cheaper in Canada. All the M340i cars sold in Canada are Xdrive.

[wtwo3]

Originally Posted by myersrw

I fully loaded a M340i Xdrive on the BMW USA website and the price was about $69,000. When I went to the Canadian website the same car with all the same options was about $57,000 U.S. Why? Why is the car so much cheaper in Canada. Even options like the Tanzanite Blue II paint is over $700 cheaper in Canada. All the M340i cars sold in Canada are Xdrive.

Because Canadian incomes are not proportionate to US incomes.

A person that makes a $100k in the US does not automatically make $130k CAD living in Canada. Chances are they'll be making $100k CAD which actually translates into $76k USD. From what I've heard, this is common in companies that have both Canadian and US employees. There is no income adjustment made for currencies between US and Canada.

So that Canadian car might seem like a cheaper $57k USD to folks in the US, but to folks living in Canada, it feels like they're paying $74k.

[530iDriver]

Originally Posted by wtwo3

Because Canadian incomes are not proportionate to US incomes.

A person that makes a $100k in the US does not automatically make $130k CAD living in Canada. Chances are they'll be making $100k CAD which actually translates into $76k USD. From what I've heard, this is common in companies that have both Canadian and US employees. There is no income adjustment made for currencies between US and Canada.

So that Canadian car might seem like a cheaper $57k USD to folks in the US, but to folks living in Canada, it feels like they're paying $74k.

And no to mention the higher taxes in Canada.

[NewM3driver]

Unless you are buying something you are certain you want to keep... a classic, just negotiate a great lease deal (timing is everything) and walk away in 3 years. You are enjoying ALL the purchase discount and incentive at purchase and are dealing with a 60% residual at the end.

[A6bullet]

Not to sound super abrasive, but if you are that worried about depreciation if you buy it, then maybe you just cant quite afford it. ALL new cars depreciate as soon as you pick up the keys.

It all comes down to how much you are willing to suck it up.

[TTG]

Originally Posted by 530iDriver

Be patient and wait for a CPO or demo to show up.

Never ever purchase a brand new BMW.

+1 This or lease and not worry about depreciation.

BMW Seattle always have their loaner cars (including M340s) on their website and OP can get an idea of how much CPO M340s are going for.

[bimmer456]

Originally Posted by alex2364

Plus who pays full price for a BMW? People are already getting $10k+ off MSRP. https://g20.bimmerpost.com/forums/sh...8;postcount=23

Yes the discounts are higher since they raised the msrp and it no longer comes with HK audio standard. But if you wait a couple years that $60k car can be brought fo $30k CPO with low mileage.

[golf_234]

Originally Posted by 530iDriver

Be patient and wait for a CPO or demo to show up.

Never ever purchase a brand new BMW.

Add facelift LCI refresh on there plus that, and you have one of the best plays possible.