A few years ago, I found myself sitting in a buddy’s car shop, discussing the classic-car market. The conversation, ironically, was conducted in the presence of a collection of Ferrari Dinos, Daytonas, and race-bred Lancias—the crème de la crème of collectible Italian iron. My argument was something along the lines of insisting that my buddy buy a BMW M1, because “the prices are only going to go up—they only made a few hundred—German cars are on the move.” When I made that statement, an M1 could be had for the reasonable price of $150,000 to $200,000.
Lo and behold, as recently as a month ago, you could find, on this very site, a Polaris Silver BMW M1 for sale for a hair under $1,000,000. A quick browse through Hemmings shows another M1, albeit in a less rare shade of black, at the low, low price of a cool half mil.
Not to be that guy, but I suppose I am: I told you so.
Had I the means, I would buy either of those M1s; hell, I would probably buy both. What’s not to love about the M1? An interesting back story of Lamborghini commissioned for construction prior to a financial meltdown, limited production, a winning racing history via the ProCar series—and don’t forget that Mr. Giugiaro himself penned the car. This has culminated in a recipe for success in the classic-car market, and the case of the M1’s rapid ascent in price has proved to be such.
The M1, however, isn’t the lone Bavarian showing a meteoric rise in prices in the last few years. Of course, I must be talking about der übermensch known as the E30 M3. In the last decade, the original M3, a late-1980s homologation special built off of the second-generation 3 Series—and a racing phenomenon—was easily attainable for the any entry-level BMW enthusiast for around $10,000 to $15,000 for a clean example. Today, a more limited run like the Evo I or Evo II model can run easily run from $50,000 to $100,000.
How is that for depreciation? In 30 years, a car loses nearly all of its value, only to recoup it and then potentially be worth 100% more than what it cost new: crazy, but that’s where the market seems to be heading.
With the rise in value of classic German rarities has come a trickle-down effect to other less rare (but equally engaging) BMWs. Relatively speaking, the values of Laguna Seca Blue E46 M3s are getting silly for a color that—well, a decade ago, so many people disliked it that BMW removed it from the E46’s color palette in the U.S. It makes me wonder if by 2025 a Yas Marina Blue M4 will fetch a hefty premium.
I recently met a gentleman who was the proud owner of a concours-quality E28 M5. I vigorously shook his hand, and said congratulations, almost as a “good job on padding your 401k” rather than having a supreme taste in cars. Yes, even the long-undervalued E28 M5 has begun to climb in value, and I have to wonder where the original M5 will land for a clean version in just a few years.
But what’s driving this market? Is there a perception that classic cars such as the Ferrari 250 GTO or McLaren F1 have reached unobtainium status, and collectors are now trawling more “normal” German cars for potential value? Are we, the enthusiasts, viewing Bimmers from yesteryear through rosy glasses? Are the values being pushed up in light of the tech revolution finding its way under the hood of modern cars? It’s hard to say.
Phrases like “hand-built” and “racing homologation” suddenly carry far more weight in the world of classic BMWs—with far higher prices attached to these phrases. I am not one to question what the correct value of these cars should be in the market; I am biased, after all. As mentioned earlier, with enough resources, I’d probably buy one of each BMW ever made. Yes, I’d even buy a 550i GT. Dedication? You bet.
All things considered, it makes me a bit sad to see where prices are heading. As we watch the modern automobile move further away from analog inputs, the same pool of classic cars that scratched this particular itch have begun to evaporate for the regular enthusiast. Perhaps this is the progress of the car industry as a whole—and an unavoidable fate. What once was old is new again, and with enough time and space, any car becomes classic—and its perceived value increases. Will an E46 330i Performance Package become the next generation’s track-hammering version of the venerable E30 325is? Probably.
Looks like I’d better start digging for an Imola Red 330i while I can still afford it!
But for those who can afford these ever-rising prices, I hope that you can enjoy these automotive works of art and engineering where they belong: on the open road. Regardless of price, it is what they’re built for—and ultimately what drew enthusiasts to the brand in the first place.—Andy Murphy
