Antiques are often regarded as high-valued treasures in collectors’ eyes. That same thing applies to cars, when they’re old and well-maintained, money will come knocking on the owner’s doorstep.
On August 24, 2018, at the Gooding & Co. car auction in California, some paranormal event took place: a German sedan sold more than quadruple—even beyond quintuple—than its expected, estimated value on this date. Get this, a 2002 BMW E39 M5 sports sedan just topped out $140,000 to $180,000 (roughly P7,000,000 to P9,000,000). That’s more expensive than the Nissan GT-R.
According to Bloomberg, the car came in mint condition. It makes us wonder how minty is “mint” for it to cost six digits in dollars with its original value, if you are to buy it in 2002, is $72,000 to $75,000 (around P3,600,000 to P3,750,000). So, how does a BMW sports sedan double its value in 16 years?
To an economist point of view, the explanation is quite simple. David Brynan, a senior specialist at Gooding & Co., explained that value on (old) things is mainly driven by insiders in the collectible market. Trend plays a huge part, as more demand from people results in more supply. When supply is not met, prices go up.
Just in case you missed the trend in the automotive market today, more people are trying to get their hands on older models of the M5 sedan. And, if in case you’re wondering, high authorities in the automotive world dubs it as the highest species of the super sedan – the best mankind has ever produced.
This particular 2002 BMW E39 M5 was owned by a man in Rancho Santa Fe in California. This man bought two of this model; one for his daily use and the other one for preservation. With that said, this car only has 703 km on the odometer; a Holy Grail-find for M5 hunters out there – that’s how minty of a mint condition it is.
We can clearly say that the 2002 BMW E39 M5 has met its returning lovers and with that, it can now be considered a cult object in the industry. It's one of those cars that had undergone the cycle of depreciation to appreciation cycle, as people began seeing what’s good in it. So, if you have an old M5 lying around, baby it. Who knows, count more years and you might reap more than you expect.