The most valuable classic BMWs in South Africa
German-made cars are among the most valuable luxury item investments in 2023, and the value of modern classic BMWs is climbing incredibly quickly at the moment – with five notable models.
German “modern classic” cars are among the most bulletproof automotive investments on the market, with the values of certain iconic models doubling in the past five years.
This is according to Creative Rides Classic & Collectibles Auctions CEO Kevin Derrick, who said some of the highest auction prices in the world recently have been seen on vehicles grouped in popular media as “modern classics”.
Certain models released during the 1980s, ‘90s and ‘00s fall within the broad definition of modern classics, which have been identified as having the “X factor” because:
- They have a cultural influence;
- They’re rare and desirable;
- Their styling is unique;
- They represent an engineering or design evolutionary leap; or
- Their performance sets them apart.
“With most new vehicles depreciating the moment they’re driven off the lot, investment buyers are understandably concerned about risk exposure when it comes to modern cars,” said Derrick. “That’s why my professional advice is always ‘if in doubt, choose German’.”
“German manufacturers as a whole lead the modern classic investment curve because their limited releases offer the enhanced potential for both short- and long-term returns, while their superior engineering creates cars that are built to last.
“BMWs, in particular, offer strong growth potential based on buyer demographics trending younger. Put plainly, more BMW enthusiasts are entering the market than leaving it,” he added.
A Hagerty report in April noted that millennials (born 1981-1996) now comprise the largest market segment for high-value modern classic BMWs, with Gen Z buyers (born after 1997) racing to catch up.
In the past four years, the youngest global street legal generation’s investment in the classic BMW market has risen from just 3.1% to 11.3%.
Derrick noted that there’s sound reasoning behind high net-worth individuals hedging their traditional investments with assets like classic cars. According to the 2023 Knight Frank Luxury Investments Index, the values of BMWs across the board rose 9% in the first six months of the year.
Data from Hagerty shows 229% to be the average appreciation for collector cars featured in the Hagerty Price Guide since 2007.
“Most of us will never be able to park a $142 million investment 1950s Mercedes-Benz 300 SLR Uhlenhaut Coupe in the garage, but modern classics offer an accessible alternative wealth-creation gateway that delivers returns,” he said.
“German cars – BMWs in particular – are as close to bulletproof as one can get right now,” he added.
Top 5 most valuable BMWs
Derrick said the checklist for assessing the investment potential of modern classics includes recent market performance, scarcity, overall condition, mileage and provenance.
Based on these metrics, his expert list of five investment-worthy modern German classics are listed below.
1. BMW M3 CSL E46
The M3 CSL E46 was manufactured for six short months in 2003 and is one of the most collectable modern BMWs in the world.
A total of 542 right-hand drive CSLs were built, with only 65 numbered units ever exported to South Africa. Seven months ago, an original condition M3 CSL with 23,000 km on the clock sold at auction in Europe for just over R4 million.
2. BMW 325iS
The BMW 325iS is a cultural icon with a cult following in South Africa. Built only in South Africa for the local market, records show that 508 “Gusheshes” left the factory in the early 1990s.
The Evo1’s launch price was around R95 000, but the Evo2’s enhancements added R10 000. Few of these highly desirable 325iS’ exist today, with one fetching R900,000 at a Creative Rides auction in December.
3. BMW Z3 M Coupe E36/8 AC Schnitzer
Only 821 right-hand drive examples of “standard” Z3 M Coupes were ever built, making the AC Schnitzer-upgraded models prized by collectors around the world. This month’s auction features three Z3 M Coupes, but only one of them is a Schnitzer that was first registered in 2002.
4. E46-generation BMW M3
The E46-generation BMW M3 is widely regarded among collectors as the greatest M car ever built. These BMWs were the most advanced of their era, and the combination of stylish, understated looks with world-class straight-six engines made them powerful cars that remain a joy to drive.
Nowadays, originals are rare, and mileage greatly affects auction values. A 2002 M3 E46 with 21,000 km on the clock sold in the US in December for more than R1.7 million.
5. BMW M5 E39
Sporting a powerful V8 under the bonnet, it breathed new life into BMW sedans, while E39 chassis and interior comforts were a drastic improvement over what came before.
The 4.9L V8 in the E39 produced 400 horsepower at a time when most of its rivals only ran to roughly 350. This car epitomises widely held sentiment among collectors that older vehicles are more fun because analogue controls mean better driver feedback. It is one of the most powerful, enjoyable and collectable modern classics on the market.
Read: The best-selling car brands in South Africa – including the top 10 most popular models right now
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