postponing mistakes
I made a decision on the car. I’ve decided I really want one. So I am going to pass on the deals I’ve been looking at. Seem ironic? Read on:
The Z4 M Coupe is one of the rarest production models (if not THE rarest) BMW has put out. It is the only one on that list that also has the most celebrated engine BMW ever produced, the 333 bhp S54 naturally aspirated inline-six:
The S54 won the International Engine of the Year award overall for 2001, and also claimed the “Best New Engine” that year as well as won the 3-4 L category for six straight years in a row from 2001 through 2006. The S54 was also on the Ward’s 10 Best Engines list for 2002 through 2004.
Not to mention, it is certainly the only one that looks like this.
Only 1820 exist in North America, minus however many have been converted to track cars and/or crashed.
These factors give it potential to be a cult classic, like the Stingray Corvette, ‘87-‘88 Porsche 911, Porsche 993, BMW E30 M3. These cars have appreciated tremendously in value, and examples in mint condition are beginning to surpass their original retail prices! The Z4 M Coupe’s predecessor, the Z3 M Coupe, already has its following, and it is clear to me that the new model may be even more valuable since it will likely be the last M car with a six cylinder engine.
To clarify my position: I don’t view cars as investments. I do not, however, believe that a vehicle must necessarily be the rapidly depreciating asset that most people treat it as. I would guess that the net cost of cars is higher than anything else an average American spends money on. Therefore, I think it is smart to purchase a car that will retain its value as much as possible. I’ve had a good track record so far. (Harsh, maybe this can be a category of our cultural arbitrage fund?)
So, I’m going to wait until most of the M Coupes come off of their leases and start hitting BMW dealerships again. This will happen throughout 2009 and 2010. I expect prices to be a little lower then. When I get the right color at the right price, I’ll be ready.
Hold me to this ;-)
