Depreciation Appreciation: 2003 BMW 330i

bimmerhead (53)in #cars • 8 years ago (edited)

There are two forces in finance that you don't want to be on the wrong side of: compound interest and depreciation. This blog aims to get readers on the winning side of both of these by highlighting the great used car bargains available today. By buying the car you want on the pre-owned market rather than new, you will have smaller (or no) car payments (and pay less interest) and be exposed to less depreciation.

For most German car enthusiasts the BMW 3 Series represents the prototypical sport sedan. Which generation of 3 Series represents that for you likely depends on when you were born. For an early Gen-Xer like myself it's the classic E30 (1984-1992). That was the 3 Series for sale when I came of licensing age, and the one that was affordable when I was shopping for cars in my early 20s.

For the current crop of car buyers who are likely looking for their first new car purchase, the fourth generation E46 (1999-2006) is that quintessential 3 Series. So new car shopping millennials listen up! You don't need to limit yourselves to entry-level Korean models or squeeze into a Ford Fiesta or Chevy Aveo. You can fulfill that teenage dream and own the Bavarian poster car that hung on your bedroom wall.

Today's used car bargain comes to us from Kijiji Toronto:
Year: 2003
Make: BMW
Model: 330i
Mileage: 72,080 miles (116,000 kms)
Price New: $34,600 US (base price)
Asking Price: $5,950 US
Depreciation: 83%

From the advertisement:

For sale I have a 2003 BMW 330i E46 sedan in excellent mechanical and cosmetic condition. The motor is original and not a replaced engine. Reason for low mileage is because it was stored during winters. It's automatic with optional manual sport mode. I've always used Shell 91 V-Power gas. This car only has 116,000km and does not burn or leak a single drop of any fluid. Everything is rust free including the underbody. Both heating and AC work perfectly. Has factory Xenon auto-levelling HID headlights, windshield rain sensors, auto dimming rear view mirror, and is fully loaded with the exception of navigation. Has Harman Kardon premium sound system with optional auxillary cable neatly installed. Just bought K&N Air Filter, NGK Spark Plugs, Pirelli P7 Cinturato runflat tires, and changed oil and oil filter with Castrol Synthetic. Car drives straight and true, the steering is responsive, brakes stop on a dime, and suspension is sporty but dampens bumps nicely. Everything on this car works well! This car is accident free with no liens. Comes with emissions and safety certifications. I will provide used vehicle information package.

While the E36 (1992-1998) was the bigger breakthrough in terms of design, the E46 took the look to a more mature level that still looks quite contemporary. What we have here is a very well equipped specimen near the pinnacle of the four-door heap. Except for the aforementioned missing navigation, the lack of all wheel drive, and the pretty rare ZHP sports package not being included you've got most everything else on the buffet. The 3 litre straight six puts out a strong 225 hp and will get you to 60 mph in 6.8 seconds. Being a 2003 model you also get the face-lifted look with scalloped front headlights and a reworked rear end. I find the Style 73 wheels classy and the paint colour will likely age well. From the description it seems like the owner was more committed than usual to keeping it in top form and the includsion of safety certification certainly helps to reduce the used car tension. While the automatic transmission will be a turn-off to many, a lot of those drivers will be shopping the two-door version anyway.

Bottom Line
There is no new car you can buy in North America or Europe for anything close to $6,000. According to edmunds.com the average monthly car payment is $479. For that kind of cash you can own this car in just over 12 months and never have to make a payment again. Or better yet, save that amount of money for a year and pay cash for your first BMW. Will maintenance costs be higher? They'll certainly be higher than a new car that comes with a bumper-to-bumper warranty. But think about the money you'll save up front. Instead of spending $20,000 on a new Civic you can put that $14,000 in your savings account. Fourteen thousand dollars will buy a LOT of maintenance. And you'll be driving the Bavarian beauty of your teenage dreams instead.

Depreciation Appreciation: 2003 BMW 330i

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