[blownaway]

With all this talk of the new 2007 328i & 335i, I would like your opinions on the future hit/depreciation that I may encounter if I were to place an order for a new 330i in January and need to sell it in 2/3 years.

Maybe I just want this car so bad that I have to justify it financially in my own head but I’ve got to think that the 06 330i would have a few key advantages over the 328/335i line up.

If you compare the 330i to the 335i…

Less, expensive (not buy much)
Better gas mileage (I imagine the 300 hp 335 will give you 18 mpg city EPA milage vs 20 of the 330i). Am I the only one who cares?

Compared to the 330i to the 328i

The 328i will not have the 255hp engine the 330i has (I could be wrong on this, I haven’t read all the threads on this). If this is the case the 328i is a lower performer compared to the 330i, close but not quite as fast.

Last of all for those that want more power then the 328 but don’t want the excess power of the 335 will have an option of the used 330i market which will be out of production and will become desirable to those that fit this “sweet spot” profile.


Are these assumptions flawed?

I’m hoping to hold on to my new 330i for many years, but don’t want to be completely hosed on resale if I need to make a change in 2-3 years.

Happy New Year everyone!

[theclay]

The resale of the old 323 and 328 held up fine IMO. I don't think think the resale of our cars will take a huge hit because of the 335.

[Jimifighter]

Sounds like you are trying to justify buying the car. Ditch the Acura and order the 330i, I don't think it will depreciate significantly with the intro of the 328/335.

[jaro]

ust look at cars.com, autotrader and see what the 330's are going for with few miles on it...I saw a 42k MSRP demo with 4k miles selling for 37k. Other pre-driven for 35-36k range...If that doesn't make you want to get a pre-driven one in early 06 then you are nuts.

[BMW F22]

I think that if they stop making the 330, the resale value might actually go up. If someone wanna buy something with a little more power than the 328 but can not afford the 335, they would look for a 330. But since the dealers stop selling 330s, they will have to buy it privately. I guess then we can get a pretty good resale value out of it. It's a crazy thought but who knows...

[Ed_330i]

Originally Posted by BMWE90

I think that if they stop making the 330, the resale value might actually go up. If someone wanna buy something with a little more power than the 328 but can not afford the 335, they would look for a 330. But since the dealers stop selling 330s, they will have to buy it privately. I guess then we can get a pretty good resale value out of it. It's a crazy thought but who knows...

One can only hope.

[peakpro]

If your really thinking about keeping the car 2-3 years then my advice is wait a little while.....

you may have more options and more info in just a few weeks....

[Paddy]

Just lease for 2-3 years and you won't have to care what the resale value is. That's what I ended up doing. Was initially going to pay cash but after consideration (which the 8 week delivery wait gave me lots of time to do) I factored in
a) New Model Year, generally loses more value compared to post model year
b) 335i rumors

and decided to lease instead. BMW leases are very attractive right now, especially for 325i.

BTW: Residuals on 325i are much higher than 330i, so looks like there is a general feeling tha 330i value will drop more significantly than 325i

[peakpro]

Originally Posted by Paddy

Just lease for 2-3 years and you won't have to care what the resale value is. That's what I ended up doing. Was initially going to pay cash but after consideration (which the 8 week delivery wait gave me lots of time to do) I factored in
a) New Model Year, generally loses more value compared to post model year
b) 335i rumors

and decided to lease instead. BMW leases are very attractive right now, especially for 325i.

BTW: Residuals on 325i are much higher than 330i, so looks like there is a general feeling tha 330i value will drop more significantly than 325i

good advice

[dme330i]

Originally Posted by Paddy

BTW: Residuals on 325i are much higher than 330i, so looks like there is a general feeling tha 330i value will drop more significantly than 325i

Only for a 24 month lease, because BMWFS is subsidizing the deal to make an attractive lease program. For a 36 month lease, the residuals for 325's and 330's are the same. Moreover, the money factors (at least for December) are better for the 330's.

[34Three]

I disagree...especially if you're buying a 6spd. The 323i has a reputation of being the handicapped e46. I think a conservative optioned 330i will maintain its "enthusiast value".

Look at the bright side, at least you didn't pick up a 2005 e46 330...I think we will start to move down a steeper deprication decline on those while the new chassis will endure. Look what happened to those '98s just a few years ago $25K in 1999 and then bam! $18K on body transformation.

Past trends show some insulation on the body style...you'll be okay.

[kobechrome]

We don't even know if these 328/335 rumors are true. I still find it hard to believe that BMW would debadge after only one year esp if they aren't changing the engine. Plus - the 325i is their best selling submodel within the 3 series - why would they get rid of that. If they go to the 328, presumably, they would increase the engine specs and then the price would go up. I don't think they would risk pricing themselves out of this delicate market right now where they still hold a lead, albeit a tenous one.

I personally see a 325/330/335 lineup with the 335 tuned to compete more directly with the IS350 HP.

Of course, it's all speculation. I wish BMW would let us know soon...

[darkside]

I don't know how much it will affect resale value, but it bothered me enough that I purchased a 550i instead and let the dealership sell the 330i I had on order. I just didn't want to get a fully loaded 330i and then have the model change within 9 months. Still a great car, though! The 550i is a much different experience. Not as agile, but fits my 6'4" frame better and my God this car has a lot of power and torque.

[thxbuff2001]

I own a 325. I have no regrets about power and handling. But if I were in the market now, I would wait for the 335 or the 328. I know you wont regret either the 330 or the 325, but better get the new model and tell us about it.

[pharding]

I do not believe that the resale value will be impacted by the introduction of new engines. The residual/resale values for the 330 are exceptioanlly high by industry standards. Someone, other than an hardcore enthusiast, buying a used BMW will not care that the car is a 330 versus a new 335. If you are in the used car market your options are limited anyway and you accept that. The biggest residual value drop occurs when the new model comes out. The previous design takes a bigger hit than normal. My son has a 330 with a sport package. It is more fun to drive than my 545. The 330 is quick and agile. With BMW one can always wait for the next greatest engine or feature. However you give up the pleasure of driving a great car for that waiting period.

[LEDZEP]

I don't think the introduction of new models will have an impact on resale either way.

[Black325i]

The one benefit of leasing, is that you pass the future risk of residual value to the leasing company. While we can speculate, that is all we are doing. We can just guess at what a future value will be, or what the slope of a depreciation curve will be.

So, lets think about this. In a lease, BMW financial assumes that risk. Do you think they may ask the product side of BMW what products they have coming out in a 2-4 year window ? Of course they do, and based on that, and other factors, they take the residucal value position (RV) and the risk that goes along with it. If the future value drops below that, then they have the exposure, not you. (Because of this, they build in a risk premium...basically a lower RV than what they actually believe so you end up paying for more of the car)

If you are an insightful enthusiast, have a crystal ball, you may be able to "outsmart" the financially savvy folk at BMW. But, I doubt it.

If you plan to buy a new car, and keep it for its entire life, that makes sense. If you are looking to flip a new car in a couple of years, then why would you want to assume that risk ? Pass the risk, go with lease. Otherwise, you will spend countless hours speculating that some development beyond your control will make your depreciating asset depreciate even faster...

[ksfrogman]

From a comparison standpoint, the extra power on a 335 will be about bragging rights. Who wouldn't want more HP and torque?

Practically, the existing 330i 6MT has near perfect 50/50 balance and is powerful enough IMHO. It's about finesse and driveability, and yes, MPG is a consideration too. However, the 3-series may never be the quickest or fastest thing on the road, but we already accepted that compromise when we decided to buy it for the totality of its great attributes, not its straight-line acceleration (which is not bad btw).

[blownaway]

I'm not convinced that a lease purchase is the best option for me because I'm more likely going to want to own the car for more than 3 years than not.

I may also have mileage time issues as well. My 04 TL is the exception for me. In the past I’ve always got at least 5 yrs life out of my car before I resell. Unless there is a problem with my 330i, I think it is more likely that I’ll want to own the car at the end of the lease. I’m sure you can buy the car at the end of the lease term but I think I would be paying more for the car in the long run vs. having paid cash.

This may be a little off the topic but, one reason I do like the cash purchase is you can resell at any time and is not dictated by your lease term. In the case of my TL, I think I’ll be able to resell for close to the adjusted cash cost of the car after I factor in 3 yrs worth of deprecation tax write offs.

I could be wrong, but the other more important reason I favor a purchase is that I think my car will cost less if I hold it for 4+ years. . FWIW, I’m self employed so I can either write off the entire lease pmt or get a substantial depreciation (first 3 years are the most) write off. Since I’m likely not going to want to resell or turn in my car in 3 year, a lease may not be the best option for me.

Everyone’s comments really help me to sort this out. I’ll decide something soon.

Looks like others have confirmed my gut feelings that the 06 330i will not depreciate dramatically when the 328i & 335i arrive later in the year.

Black325i- According to BMW, what is your 325i worth after the end of your lease? How long is your lease?

The big question that would help me is after the term of your lease what % off the MSRP (with delivery) was the value reduced by?

If I know that % I can plug the same % into what the MSRP (with delivery) for my 330i and come up with a general picture of what my 330i would be worth at the end of a lease (at least what BMW thinks it’s worth). Could you or any others provide me with that %?

Originally Posted by Black325i

The one benefit of leasing, is that you pass the future risk of residual value to the leasing company. While we can speculate, that is all we are doing. We can just guess at what a future value will be, or what the slope of a depreciation curve will be.

So, lets think about this. In a lease, BMW financial assumes that risk. Do you think they may ask the product side of BMW what products they have coming out in a 2-4 year window ? Of course they do, and based on that, and other factors, they take the residucal value position (RV) and the risk that goes along with it. If the future value drops below that, then they have the exposure, not you. (Because of this, they build in a risk premium...basically a lower RV than what they actually believe so you end up paying for more of the car)

If you are an insightful enthusiast, have a crystal ball, you may be able to "outsmart" the financially savvy folk at BMW. But, I doubt it.

If you plan to buy a new car, and keep it for its entire life, that makes sense. If you are looking to flip a new car in a couple of years, then why would you want to assume that risk ? Pass the risk, go with lease. Otherwise, you will spend countless hours speculating that some development beyond your control will make your depreciating asset depreciate even faster...

[Meatnog]

As it has been said repeatedly:

Simply put, the introduction of new models frequently has absolutely no impact on the resale value of existing models.

There is a constant flow of new models, improvements, etc... there always has been, there always will be.

[pharding]

December 05 330 Lease, 15,000 miles per year, 36 month, residual value if you lease from BMW FS is 62%.

[34Three]

an enthusiasic here here to pharding...he gives us the truth

even though I'd hate to come up on a 545I in the wrong I pass lane