The Enthusiast Market For BMWs
In last week’s article, we discussed the potential the G20 M340i has to repeat the same success and enthusiast favoritism that the N54-powered E9X showed over its M3 big brother. This is a rough segue into our topic this week, which will cover the explosive car market Americans are experiencing currently. With new and used car prices at all-time highs, we wanted to circle back to some questions we’ve explored in the past, like our buyer’s guides, and ask a few new ones that have arisen. This week, it’s all about buying and selling BMWs in today’s market, what enthusiasts are doing compared to the average consumer, and how it’s affecting us a little differently. | | | When I bought my first E30, it was a gray-market import, highly optioned, extremely early production 323i coupe in Hennarot over beige. The doorjamb stickers actually depicted an E21 323i and it featured several unique options most folks would never know could have been equipped to an E30. I pulled it out of a field and paid less than $1,000 for it. I sourced an interior from a parts car my friends and I purchased together, completely rebuilt the M20B23 power plant, and sent it on its way to its current owner for a healthy profit, but still much less than the car is worth now. This was before the ‘E30 Tax’ took hold, which skyrocketed the prices of even non-M E30s. Today, you can’t find anything in solid condition for anywhere close to what I even sold the car for, much less what I picked it up for. Gone are the days of ‘hey, I have this junker BMW in my backyard, I’ll pay you $50 to come get it out.” (That happened to me quite often and much of my BMW ownership can be attributed to people paying ME to take an old E30 off their hands.) | | | With the vintage BMW market exploding over the past decade, and now the surge in used car prices post-pandemic, we’ve reached this perfect storm where sellers can and do demand premiums for even the most basic, least desirable, rusted-out hulks. Just yesterday I saw what I would call a ‘three wheels in the junkyard’ version of a Roundie 2002 listed for $9,000. The craziest part was that none of the comments were ‘what’s this owner smoking,’ they were ‘wow, what a steal for this Roundie!’ Now, I know the Roundies have fetched some eyebrow-raising prices in recent years, but this one floored me, especially since it didn’t have floorboards. | | | The same can be noticed with E46 M3s, E36 M3s, E9Xs of any variety, and really any BMW pre-electronic steering. E46 330is, 325is, and especially tourings seem to have reached their lowest point sometime last year and have steadily climbed since then. What was a $1,500 car with 150k miles a few years ago is now a $3,000 with 200k miles. The fact is, where many of these BMW models should be reaching their lowest values, we’re seeing that floor raised to well above what previous generations experienced; a la ‘come get this thing out of my yard, I’ll pay you.’ | | | With used, and new car, prices rising through the ceiling and pulling the floor up with them, it’s an astounding seller’s market. However, what are enthusiasts doing? I read a recent article about a MINI that has held its exact value over the past three years despite accruing another 20k miles on the clock that the owner firmly will not sell despite the apparent equity in his little ‘British’ hatchback. A quick search through Autotempest and Facebook Marketplace shows a stark desert for BMWs of any model, and what is available is listed well above what I would consider ‘fair’ pricing. This tells us two things. | | | First, sellers are not afraid to attempt at capitalizing on the bull market for used vehicles, especially enthusiast vehicles. They’re ready to cash in on a car that they likely paid less for a few years ago, have racked up some miles, and see that they now have a chance to either break even or make some profit. They’re listing cars at asking prices well beyond what they should and they’re finding buyers who have no choice but to pay that price for older vehicles since newer ‘used’ cars are holding such high values. | | | Second, it shows that the majority of enthusiasts are holding onto their cars. With the market so heavily weighted towards sellers, it would make sense for anyone, even a die-hard enthusiast, to cash in on some profits. However, it seems that the majority of ‘desirable’ BMW model owners prefer their car to cash. It doesn’t matter what they can get for the car, it matters that they have the car. Which honestly hits me right in the feel-good center of my brain. It shows a collective love for the car, not the collectible status. | | | Previously, I’ve griped about the overinflated prices of specific models, like the E30 M3. These stratospheric prices make driving and enjoying these cars nearly impossible. Many owners choose to collect them as ‘investments’ rather than as an enthusiast vehicle that demonstrates a peak in BMW motorsport history. However, with the current used car market, what we’re seeing is that real enthusiast owners of other desirable BMWs are not selling despite the rise in prices across the board. With their preference of the car over the money, we’re seeing real enthusiasts contradict the market by holding onto their BMWs. | | | Whether that’s in hopes that the market will continue to rise or not, the fact remains; right now is a tough time to buy a BMW, or any car, due to the costs and lack of availability. Owners aren’t selling despite collectors and other enthusiasts paying premiums. The only question that remains is: at what point do owners give in to the temptation to cash out for a profit on something they love as much as their vintage or enthusiast BMW? If they aren’t selling because they predict prices will rise, then my idealism is likely a false interpretation of BMW enthusiasts’ mindsets. But, if they’re just not selling because they love the car more than they love money, then I think that shows the true nature of our community’s passion for these cars. What do you think? Is now the best time to move on from one of your BMWs? Should we be wary of collectors hoping to get in now in anticipation of continued price hikes that turn what we love into something like a stock portfolio rather than a passion for the machines themselves? Let us know at [email protected] what you think about the used BMW market right now. You may find yourself in a future edition of Turner Motorsport Weekly. | | | | |
