4 years of ownership review - cost analysis

[Gaijiniji]

Four years of ownership have gone by much faster than I expected. https://z4-forum.com/forum/viewtopic.php?t=75338

While I have been a lurker on this forum for this time I haven’t contributed much. I haven’t really needed to with most of the answers I’ve needed being available here already. Thank you for this. However some recent boredom at work has resulted in some interesting working out of car ownership. More on that shortly.

Id mentioned in my first post that this car was quite flawed. The clutch is a little agricultural in town, being tall I can’t see much with the rear mirror (it has me looking down at the road rather than behind me), rear visibility makes reverse parking largely guesswork, the wing mirrors are at just the right height to be blinded by any SUV behind me. Changing a light bulb is not as easy a procedure as one would expect…

Living with the car as a daily has been a sometimes challenging but always fun experience. I’ve taken an entire IKEA double wardrobe to the dump in its boot (took me an entire day to cut it up into quite small pieces). I’ve taken my bike to Strathpuffer and Relentless (24 hour MTB races). I’ve been up to the very north coast of Scotland with it and down to the Goodwood Revival. I've dealt with people assuming I am a poser and the obligatory hair dresser comments. The truth is I don't really care. I didn't buy the car for other people, I bought it because I enjoy it. Its an absolute joy to drive.

I’ve driven other cars in this time – I just haven’t really bonded with them and always wished I was driving my own. Ultimately the Z is “just a car” but somehow this time felt different and these flings only serve to show me just how much I love the Z. It gives me the fizz.

Methodology
"if you need to ask how much its going to cost...". We have all seen this rather elitist attitude towards those that value money. What if I told you that you can indeed be a petrol head and be prudent with how you spend your money? (at the risk of going off on a tangent these are not "investment cars". Its likely you would get a better yield on a Marcus Bank account with 1.5%. Investment no. A smart buy? Perhaps). When looking at the other costs I like to look at total costs of ownership. I’m an economist so think like this.. Stay with me here as this is more interesting than it sounds. When looking at the costs of a car, for say 4 years, I look at the usual such as road tax, insurance, fuel, servicing but also depreciation. This is the main cost in car ownership and the results may surprise you. See below my working (happy to supply formula to anyone that wants them)



Assumptions - I drive roughly 520 miles a month. Petrol is £1.25 a litre and 1.1 times that for diesel. I own the car so require no finance. the 2019 335d assumes I sell the z4m and use the proceeds to get a hire rental purchase balloon payment type deal on a new car (insanity but a useful comparison).

I know what you are thinking – maintaining a 12 year old sports car will be more than a new fiesta? Yeah, I thought that too. Its not. Well, it is… just not as much as I thought it would be. I was scared by the possibility of catastrophic failure. “Engine blows resulting in future generations of my lineage being born gingers” kind of stuff. The reality is that in 30000 miles has been a cracked rear coil and a failed coil pack. Two flat tyres I won’t count because this would have happened no matter which car I was driving.

Am I saying that a z4m is cheaper to run than an F30 335d? not entirely. The 335D will have lower monthly outgoings.. but when we consider the true cost of ownership the Z4m wins by £140 a month! £140 a month and driving something that’s properly special – Ill take that! Even if it had suffered failure valued at up to £5k I would still be £36 a month better off over a 4 year period.

On another note please feel free to tell me I am wrong. I am in no way sensitive about these numbers / logic. I’m happy to be tested and for people to find flaws. I realise that
1. The internet is a harsh critic.
2. This may be a secret you have already known and don't want voiced

I also in no way wish to refine all of the joy out of owning this car. Quite the opposite. To me this is and has been a "head and heart" choice.

P.S. when we see each other we should really wave. I saw a blue one heading up to the motor show in Bo'ness. Waved like a mad man and got nothing.

 

[Bing]

I have driven mine 60k in the last 5 years as a daily and have loved every minute of it. I have refused to even try to work out numbers like these, as I decided a long time ago not to care... but I am REALLY pleased you have, because now I feel ace

I can’t test your maths but I agree wholeheartedly with your ownership comments. We are very lucky IMO.

 

[james28]

a great write up op
I think they are utterly brilliant cars and anything sub 30k the z4mc is hard to beat.
In terms of running costs the ved is a bit of a joke at 500+ but insurance relatively cheap 300 a year.
An inspection 2 can be done for about 700 pound.An inspection 1 half that.Tyres brakes etc I think are reasonable.
I think they hold up well for reliability.
They look amazing sound amazing and are one of the cars that hold up well in terms of depreciation.
Not sure I would want to run one as a daily driver Not that it would be a problem.For me every drive is a sence of excitement.As a second car or weekend driver it's 1st class.

 

[buzyg]

For some one who doesn't post much, you can sure write a cracking informative post.

 

[Mr Tidy]

Very interesting post OP.

I viewed an MC last month but didn't go for it - maybe I should have seen your numbers! :roll:

 

[DOOM]

Post more often.

 

[MattZCars]

Wholeheartedly agree with your post on running costs both the logic and numbers support running a Z or indeed this type of car with a couple of strong provisos. I'm an accountant so have a similar keen interest in "real" numbers as opposed to people's perception of cost and expenses.

Firstly, annual mileage has to be reasonable, probably 10K or less. Secondly, you have to avoid the worst of the depreciation. This means either

1. Buying a highly desirable model such as the M and keeping the mileage low enough to maintain it's value
2. Buying old enough that the last owner took the biggest hit of depreciation, I would say 5-7 years old at least. I usually buy older simply because I'm very careful with my money! Short arms...deep pockets...the usual jokes apply However this doesn't mean that I can't really "afford" a Z!
3.Buying a quality car and looking after it! If you're on this forum you're basically already doing this

There are lots of other things you can do as well to keep costs reasonable without having to spend every weekend on your back with a handful of spanners! Using good indy garage's, buying good quality but not always OEM parts, buying off fellow enthusiasts. All well documented on this forum

The petrol v diesel argument is one I've been passionate about for a long time. Diesel's have their place...tractors, trains, lorries...NOT passenger vehicles! All of the people I know who run diesels to any mileage have had big repair bills. Turbo's, DPF's, EGR's, DMF's, Injectors, fuel pumps, the list of expensive and highly stressed components used in the attempt to make diesels civilised enough for use in cars is long!

But great post OP, really good reading!

 

[Gaijiniji]

Thanks for the positive feedback all. I must admit I did question the results a few times as it just didn't seem plausible. I am now intolerably smug about it though!

Yes. Sorry about the lack of participation. There is a wealth if mechanical info on here and its made ownership that much easier. I figured its about time I paid back the benefits. Perhaps the next post will be on why these are not investment cars and should be enjoyed guilt free.

A word of warning though - if you got all of the worlds economists together and made them hold hands around the equator... you still wouldn't reach a conclusion.

 

[Angelus666]

Great post OP...! 100% agree...of all the cars I've owned the M3 CSL and the Z4MC have been the two most economical to own.

 

[Status]

Well I’ve had my M coupe for a year now it’s done 53 thousand miles so an oil/filter change next week as service history all up to date,wot I’m saying is that me and the missus have been to all the countries around the world now so we go for more long weekend breaks and We go in the M,it’s one of my toys alongside my sti uk Impreza my WRX wagon and my Datsun 260 Z,it’s not all that on mpg but I’m not that bothered as it’s not as bad as my old Jenson interceptor next mini break is up to Northumberland in the M

 

[Z4M-2006]

Great info that

Over 4 years and 20k is a great spread of ownership knowledge for expenses .

20k should bring up inspection 1/2..tyre changes and brake pad and disc changes, which really are the big”normal” expenses in Z4M ownership..

In comparison i presently have a 981 Cayman that is frugal beyond belief for running costs ..

Cheap VED, insurance and bi annual servicing , along with 30+MPG on the commute brings it in the “cheap” category to run I would say.

I have also had C63’s, M5’s and XKRs at the opposite end of the scale... when running these kinda cars, expenditure doesn’t seem to bad (as a low miles user) , until you own something that is truly frugal..

Estimate that my 981 Cayman cost half to run, own and maintain than my C63 did

 

[DevonPaul]

Great post OP...! 100% agree...of all the cars I've owned the M3 CSL and the Z4MC have been the two most economical to own.

The wife got her MC as a daily/second car intending to have fun and save the Mas for high days and holidays, as the Mas was a "prices of these are only going one way" car at the time.

The Mas price has only gone one way, and is now worth less than the MC, so now the Mas is becoming a daily. It seems happier being used, but I'm fairly sure the fuel costs outstrip any value increase in the MC.

You avoided the pitfall of comparing it with a new car (of similar initial cost) and including depreciation, but the OP's table has a 335d losing 9k in 3 years which could be a bit high looking on AT now, where a 335d is 3 years old for 18K, selling at 13K 3 years later.

We looked at a 2 year old GT86 or a 10 year old MC at about 18-20k. Over 3 years and 12000 miles the GT86 would have lost about 5k, saved £800 in VED, a few hundred in servicing (main dealer fixed price rather than BMW Indy) and about a grand in fuel. Still cheaper to run the Z4, but not that big a difference.

However Man Maths is still at play

A more valid comparison would be against a 370Z Nismo or a Cayman of similar age and over the same period, as they are proper alternatives. In the real world nobody thinks "should I get a small town car or a 350hp sports car", erm, except perhaps my wife who started off looking for an MX5 to replace her MR2.

Paul

 

[enzed4]

Great post OP...! 100% agree...of all the cars I've owned the M3 CSL and the Z4MC have been the two most economical to own.

The wife got her MC as a daily/second car intending to have fun and save the Mas for high days and holidays, as the Mas was a "prices of these are only going one way" car at the time.

The Mas price has only gone one way, and is now worth less than the MC, so now the Mas is becoming a daily. It seems happier being used, but I'm fairly sure the fuel costs outstrip any value increase in the MC.

You avoided the pitfall of comparing it with a new car (of similar initial cost) and including depreciation, but the OP's table has a 335d losing 9k in 3 years which could be a bit high looking on AT now, where a 335d is 3 years old for 18K, selling at 13K 3 years later.

We looked at a 2 year old GT86 or a 10 year old MC at about 18-20k. Over 3 years and 12000 miles the GT86 would have lost about 5k, saved £800 in VED, a few hundred in servicing (main dealer fixed price rather than BMW Indy) and about a grand in fuel. Still cheaper to run the Z4, but not that big a difference.

However Man Maths is still at play

A more valid comparison would be against a 370Z Nismo or a Cayman of similar age and over the same period, as they are proper alternatives. In the real world nobody thinks "should I get a small town car or a 350hp sports car", erm, except perhaps my wife who started off looking for an MX5 to replace her MR2.

Paul

What's a 'Mas'? Maserati?

 

[DevonPaul]

What's a 'Mas'? Maserati?

Maserati Gransport - thought it was in my profile but apparently not on this forum, so I've added a sig.

Actually, that could be a good direct comparison now - similar purchase price, similar performance, similar value expectations (in some circles anyway), but then the BMW really would look cheap.

One year we only did 1800 miles in it after major service, wheelbearing/hub, and tyres. Total cost for the year was around 3k inc tax/MOT/Insurance so about £1.60/mile, which would have been about the same as a taxi.

Paul

 

[enzed4]

What's a 'Mas'? Maserati?

Maserati Gransport - thought it was in my profile but apparently not on this forum, so I've added a sig.

Paul

Cheers

 

[Gaijiniji]

You avoided the pitfall of comparing it with a new car (of similar initial cost) and including depreciation, but the OP's table has a 335d losing 9k in 3 years which could be a bit high looking on AT now, where a 335d is 3 years old for 18K, selling at 13K 3 years later.

A more valid comparison would be against a 370Z Nismo or a Cayman of similar age and over the same period, as they are proper alternatives. In the real world nobody thinks "should I get a small town car or a 350hp sports car", erm, except perhaps my wife who started off looking for an MX5 to replace her MR2.

Paul

I appreciate that depreciation predictions are not an exact science. Updating my spreadsheet with an f30 335d depreciation to be 6k over 3 years still has a monthly total cost of £332. With the new model just released I still think the 9k value is more reflective. Perhaps regulation will become more aggressive resulting in a steep depreciation curve for all of our beloved internal combustion cars.

I disagree. With a £20k budget I think you should look at the alternatives (high spec fiesta, bus pass and no car) before settling for what makes you happy. I know, for instance that the premium I pay for the M over a monthly pass on the peasant wagon (kidding) is £162. To me its rationalised and absolutely worth it.

A masers Granturismo is one of the most beautiful cars on the road. Servicing it and some of the mental costs I have heard scares the s**t out of me though. Replacement key? That will be £3600 since they don't stock spares and need to change the door locks, boot locks and ignition...

However Man Maths is still at play

Absolutely. Hence the caveat

A word of warning though - if you got all of the worlds economists together and made them hold hands around the equator... you still wouldn't reach a conclusion.

The problem with economics is that it assumes everyone rationalises each and every decision. They don't. Everyone just deciding to "f'it and work it out" totally skews any models!

 

[Gaijiniji]

The dangerous thing with this is that i have now started looking at other daft cars (namely a B7 RS4) and wondering...

I did, however mention that i would post about these not being investment cars first.

With that in mind consider a scenario where you bought a Z4m, lowish miles of around 50'000, 4 years ago for £17k.
In those 4 years you have taxed it for 6 months - £300
Insured it - £350
Serviced it - £400 (rough yearly average)
Fueled it for a nominal mileage - £500

The above is what we could (as petrol heads at least) consider to be the absolute minimum to own an M coupe right?

To put it another way we are spending £1550 per year on our hypothetical garage queen. This represents 9% of the purchase price of the car.... which means that the car needs to appreciate by more than 9% per year to be an economically viable investment. If it has returned 9% and covered our costs its not an investment, its a store of wealth.

Our £17k four years ago would now be worth £24k. Are there any low miler z4's on the market for £24k now? no. The closest i can find is a 64k miler for £20k. You can do the maths here.

The picture worsens as you begin to compare our initial £17k investment to other investments (our opportunity costs). A medium growth fund with 4.5% returns would be worth £19700 now. A high return fund with 7.5% returns would be worth £22k (or more) now.

While these could be considered 'investments'... they don't seem to be good ones. Can you potentially use it as a store of wealth while having a cracking car to drive? Yeah sure. I needed a car, Ive had massive smiles in a Z4M for 4 years and its worth almost what i paid for it. Its this that makes them an unusual proposition. Buy one. Enjoy it. Drive it.

 

[RedUn]

Interesting stuff!

For me the zed has been the cheapest car I've owned in terms of overall cost so no complaints from me

Put into comparison I lost more than my zed cost on a bmw I bought new and sold 18 months later, bit of a disaster financially but I've got over it now