Did our predictions come true about the new BMW M5? How is it selling?

Back in August we published this article about speculators and the new BMW M5:

Will buyers of the new M5 have the heyday buyers of the last M5 had because of the rarity and mystique that surrounds this awesome car?

And asked our readers to comment.

Here's a couple really good comments...

I had a 2000 E39 but will pass now

Comment: I was on the list in 1998 for the new E39 M5. The dealer called during Christmas '99 and said she had arrived. It was unbelievable to be able to drive this new 400hp rocket sedan to the track, on the track, and then out to dinner again and again without a single worry. With power to spare and BMW covering every piece, part, and maintenance item except the tires, it was heaven. After Guy Ritchie went and made the BMW Short Films with Madonna, the car's "star" potential just soared higher. I had people hanging out of their cars during that first year taking pictures of it! Sure I could have made money like many did and flipped this car. But thats not what real car guys do.

Real car guys will buy the new M5 based on what it looks like from the drivers seat out, what it feels like accelerating with the sport button engaged, how it's matched rev downshifts will help them carry more speed through the corners.

On the other hand, it's sad to think that many of these first time M5 buyers won't know what a BMW message forum is, may have learned about the car from MTV or a photo they saw in MAXIM, will think it's an automatic with a fancy parking lever, and OMG, someone's gonna think it will look cool after they put 23" bling-bling's on it! These are the folks that will bet their zero interest loans that they can spin in and out of this car faster than Greenspan can announce the next rate hike. That is if they don't first slam it into a tree sideways answering their cell.

I'll pass on this new M5 simply because the "old" one is too good. An additional hundred horsepower and SMG would be nice to play with, but at a $20k+ premium over the already "perfect" E39 M5, I don't think it makes sense.

I'm betting this time around there will be far fewer car guys waiting in line for the poser's to flip them for their next toy.

Aussie2

I FLIPPED MY CLS FOR $5100 ON EBAY

Comment: I Ordered 2 CLS500s in 2003 dec. 1 with the AMG package and 1 without. The first one arrived Jan 10 (3 days before the official launch date so I was not allowed to see it until the 13th). The other one arrived on the 20th of Jan. I kept the first one (with the AMG package) and flipped the other one on ebay for $5100 more. The dealers and Mercedes had said that they were making 6000 total for the whole united states so the waiting list grew to over a year in some places. BUT GUESS WHAT....As soon as Mercedes benz knew they had a hit on their hand they ramped up production. Now they sell about 1500 A MONTH!! in the USA. You can even get a $1000 discount on a new one now. They are still very popular but there is about enough to go round.
So the new M5 will be hot for many years, but you can only flip them in the 1st month Period!!!
If yours is not on the ship to America right now, forget about fliping it. Also BMW dealer are known for screwing flippers...How? A dealer cannot sell an M5 to anyone outside his or her jurisdiction without contacting the dealer in that area. Flipping is Risky Business. I succeeded in flipping: Mini Cooper, 1st miata, SL500, CLS500 but I failed terribly on the RX-8, Honda S2000 and 645i. I never lost money but tying down my money for 1-2 years wasn't cool.

Comment: Love it or hate it, this car is going to command premium, regardless of how problematic or available it is. It is more indicative of BMW's marketing and perception power and how they succeeded in placing the M models in people's brains. There is a certain slice of BMW owners who just have to have this thing and make it known they paid a lot of money for the previlege of being one of the first to be "seen" in it early.

After all , that's what most BMW shills are about, 'being seen' and propping up their egos. 95% of M buyers don't even know what dynamic driving is about, let alone really know how to drive or take full advantage of a great machine like any M.

For ANY person who has enough money or is successful enough, whether you are a dope dealer or arrogant stock broker stretching to be seen in a BMW, for that person, with that kind of money to be thinking about trying to make peanuts off this money or worrying about getting their money back after a year of driving a car is the best proof that these people have no class. These cheap bastards with no class, no real clue how to live and enjoy their money.

What do I work my b#tt off for and make tons of money and want to drive a great car and then STOP and worry about make an extra buck???? What are these people thinking?!?!?!

You should be thinking about enjoying the drive, enjoy your money and don't worry about peanuts like that. On a $90k car, it is a pittance. Or you'd obviously need help finding a new line of work since you are trying to make extra money where others take pleasure and enjoy the experience.

Either you are in the business of making money in cars, i e you are a car dealer, or you already are gainfully employed and you should forget about these loan sharking methods.

What a jerk this M5 guy emailing 001. If he is trying to score a few bucks or drive the car for free, then it must be one of those jerks that cuts others off and drives like an a$$, giving a bad name to a bunch of other good BMW owners.

This is ridiculous what goes on with premium charges. It is customer gouging at its best. Many state laws prohibit it and some car makers wouldn't even allow it or encourage it. Paying full sticker for any car should be more than enough and fair for everyone involved.

LA is such a crappy superficial area for car buying, full of psychopaths that always trigger these pricing drives. All these bimbos, hairdresser guy types, C-star actors/producers and spoiled brats that have to be part of the scene.

In the late 90's till 2000, Audi dealers from the West Coast were buying new S4s from East Coast dealers at FULL price, trucking them all across country and charging upwards of $5,000 for their cost. I heard up to $9,000. There were not enough places to spend all the money coming out of Sillicon Valley and San Diego then. It's cooled off a bit for sure, but there is still plenty of room for speculation unfortunately.

But it's funny to note that LA usually starts off really hot and then when the phase is waning, they really move on to the next 'THING.' BEst example would be when a couple of years ago, on the 7-series, after it had a tepid reception and BMW couldn't give it away, if you did an Edmunds comparison, you could get a much bigger discount in LA than you could get on the East Coast - read stinking rich classless yet snobby NJ, NY and CT pockets.

I will comment on one goofball post here from I believe "OOF": Hey guy (or chick), if you are a private citizen buying cars privately, you obviously need help managing money since you seem pretty stupid and irresponsible with so much money. Maybe you didn't have to work hard for your money and don't know what it really is worth and what you can do with a small slice of it for people who truly need help, food before going to sleep and help with just state college tuition so they can have a decent life later.
If you buy that much car and pay all the sales taxes, excise taxes, luxury taxes and plates and all other expenses and then turn around and sell them for a couple of grand gain, then you are in a hole. And whatever meager money you can show in profit is TAXABLE. It would take a dishonest accountant to make it look passable but I just don't see how you can be proud of this cr@p.

And if you have a dealer license and do this, then by your own admission: "but tying down my money for 1-2 years wasn't cool"....you must be a pretty idiotic one. No good dealer sits on a car - as desirable as you describe- for that long, so early close to launch.

You need to get either a NEW LIFE or a NEW LINE of work.

So in closing, to all of you, if you know of anyone who is buying or selling a car at a premium, let 'em be..they deserve what they have coming their way. It's not illegal to be STUPID.

001buster

Now I give you MY take on the subject:

First of all there is no doubt that the first owners of the new M5 should be able to make a profit if they so desire.

But I believe the profit opportunity window will be much smaller and shorter than with the last car.

Why?

1. The economy-It's way different now that during the dotcom boom of the last M5.

2. The are more supermodels to choose from...E55, 997 Porsche S, etc.

3. There are only so many customers who can afford it.

4. Owners of the last M5 love it and a lot will stay put with their current cars.

Finally, if I were speculating on ANY BMW, I'd be rolling the dice on the M6 convertible.

I think that will become the car everyone will be looking for down the road.

The smart buyers are first on the list for THAT M car.

001

Based on our surveys around the country the new M5 is not commanding premiums except for a few small exceptions.

Not only are units available in dealers for IMMEDIATE delivery but they can be had for MSRP in most places.

Check out this sample auction on eBay