Quote:
Originally Posted by upsidedownfunnel
Your trade in price might be a bit optimistic. Retail prices for a 2016 with 20k miles is about $47,500. Realistically figure closer to $40k if you plan on just trading it at a BMW dealership. Also, you are seriously undervaluing your car's value after another 2 years. There are a lot of lower mileage E90/E92 2011/2010 M3s going for about $30k right now. In 2 years, your car will still be worth in the mid 30s.
Your depreciation curve is at the sweet spot right now. If you trade your car in for a new one, you will take a bath. If you had wanted to do that, you should have just leased. Why purchase if you're replacing your car every 3 years?
If you're just trying to justify it, just do it. You're a grownup. If you want to spend your money on a car, you have every right to do it. But your math is just wrong. Your car will not go through $12,000 worth of depreciation between years 4 and 6.
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I agree with these points. Also, what about sales tax on the new car? Also, maintenance is not included anymore, so you need to factor in a maintenance plan or the cost of paying for maintenance on the new car.
Oh, and to answer your question, I keep them around 6-7 years. I buy the first or second year of a new generation and then keep it until the next gen comes out. I don't see much value in keeping it only 3 years and then just getting the exact same thing. My car is currently 4 years old and still looks brand new.