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Buying M3 Less Expensive than Keeping my Subaru

Buying M3 Less Expensive than Keeping my Subaru

Thought I would share this fun little analysis. We have two M3s reserved (on 3/31 at 9:20 am). One of them is going to replace the wife's 2011 Volt. That is a no brainer. Unfortunately I have a 2017 Subaru Outback (long story I will spare you) so I have been agonizing over whether it would be financially responsible to trade in a one-year-old vehicle just because I would prefer a Model 3. So I built a little spreadsheet to see how much it would cost me to go with the M3 instead. Much to my surprise, it was actually LESS expensive to trade in my Subaru and buy the M3 than to just keep the Subaru. So for those of you are trying to convince yourself (or your spouse) this might help:

M3 Cost
Base $35,000
Premium $ 5,000
EAP $ 5,000
Delivery $ 1,000
Total: $45,000

-Trade In $22,500 (gotta love Subaru Resale this is according to KBB)
Net $23,500
+Tax $ 1,469 (tax owed on net of trade-in @6.25%)
- Tax Cr $ 7,500
Cash $17,469
M3 Fuel -$ 4,850 (savings based on my situation 15k / yr @ 25 mpg and $2.15 gallon vs 0.237 kWh / mi @ $0.09 kWh)
5 yr $12,619
Resid -$13,500 (this is based on the residual estimate of M3 @ 75k of 50% or $23,00 vs KBB Subaru @ 90k = $9,500)
Net M3 $ 882 cheaper

Note for the projected resale of the M3 I used the BMW 3 Series rather than the projection from Autolist (click link below). If the Autolist guys are correct, then the Model 3 is an amazing $5,482 cheaper than keeping my Subaru! https://electrek.co/2017/08/22/tesla-model-3-depreciation-report/

carlk | 25 agosto 2017

I remember someone made the calculation purchasing a Model S costs less than purchasing a Honda Odyssey. Gas was probably cheaper then though/

Red_Devil_24 | 25 agosto 2017

Don't forget maintenance cost for your Subaru, the M3 will be even cheaper.

jordanrichard | 26 agosto 2017

Just to add to what Red_Devil_24 said about maintenance costs. Obviously I, nor anyone here can speak to what is required for the M3, but the MS has next to no maintenance. Like any car, rotate the tires every 5,000 miles, every 2 years flush/replace brake fluid and every 4 yrs replace the battery coolant.

Now before people start spouting off about the number of repairs they had with their MS/MXs, a repair is not the same as maintenance. An oil change is maintenance. No one ever says they had their oil repaired.