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2 questions for Artemis if I may.
Back to my previous (i.e. only!) topic on residual values. I’ve read through the whole thread now, my understanding on M2 S55 Competition launch timeline as follows;
- Details to be officially released most likely end Jan/earlyFeb 2018
- Car to be revealed at subsequent show (Geneva or possibly earlier)
- Production to start May or thereabouts
- Car likely to go on sale June/July
As to the car itself, my understanding of summary details as follows:
- Key change is de-tuned (400/410PS) S55 twin turbo M3/M4 engine to replace current N55 as base (i.e. Competition) model
- N55 engined M2 to cease production prior to switch to S55
- More factory fitted option availability versus current N55 LCI model e.g. uprated brakes and seats.
- New colours – Hockenheim Silver and Sunset Orange with Metallic Grey to be no longer available
- Definite price increase for the S55 base model. This seems to be the one remaining area where there’s significant variance in forum members views on how great the level of price rise will be
I’ve put my name down for a Competition vehicle at my local dealer (Cooper group, #3 on the list I’m told) who is asking for £1k deposit but I’m holding out at this stage on the basis that this would be my 3rd “M” car so they know I’m genuine. Dealer says it is a BMW UK requirement but I’m questioning that (any views out there?). My current M2 DCT (Jan 17 build so pre LCI) is not a daily driver so I could live without albeit like the rest of you I love the car. I’m still chewing over whether I put the car up for sale now given current known resale prices (I bought new so I’d take a hit of course but not too savage) or keep and trade in against the Competition vehicle as and when it arrives. My car is on a 2 year PCP with BMWFS (5.9% APR) ending in March 2019 so contractually at least I’m not in any rush. Question I have is what do you think will happen to residual values on current N55 vehicles in the coming months. From my perspective, it can go 1 of 2 ways:
1/ Price rise of base S55 Competition vehicle is 'modest’ e.g. €3.5k/£3.5k. In this case, presume N55 residual values will start to drop significantly once official announcement on Competition vehicle and pricing is made. Stocks of existing new N55 LCI unregistered vehicles will need to attract higher discounts and incentives in order to shift thus feeding through to used vehicle prices. In this case I’d be better off looking to sell my current car asap.
2/ Price rise of base S55 Competition vehicle is more significant e.g. €7k/£7k or possibly more. In this case, S55 becomes more out of reach to potential buyers thus ‘protecting’ existing N55 values as the only entry level “M” car price point available to a significant number of purchasers. This would also help BMW shift remaining existing new, unregistered N55 stock. In this case I’d be better off keeping my current car and waiting for the S55 Competition vehicle order to materialise presumably late 2018 or early 2019.
Option 2 would be my preferred option as I get to have my cake (keep existing M2) and eat it (get S55 M2 before my PCP comes to an end). Downside is option 2 assumes a higher price walk for the S55 car but you can’t have it all ways.
Any thoughts at this stage on how the pricing / residual value scenario is likely to play out as I’d appreciate the benefit of your knowledge and insight. I fully understand it’s my call ultimately but it will assist my decision whether to put my current car up for sale now or whether to wait and see. Decisions decisions…..
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