10 Classic BMWs You Can Likely Afford
Bayerische Motoren Werke started out as a manufacturer of aircraft engines, with the current iteration of the company being founded in 1922 (via BMW). It built its first car under license from the Austin Motor Company in 1929, and didn't begin production of its own designs until 1932. In the decades since then, BMW has grown from a local manufacturer into one of the world's greatest automotive powerhouses, developing everything from supercars to luxury SUVs. Many of the company's most iconic models now command sky-high prices on the used market, with even once-affordable cars like the E30 M3 now selling for as much as a quarter of a million dollars (via Road and Tack).
Even if BMW's most in-demand models are now well out of reach for the average enthusiast, there's no need for cash-strapped collectors to worry. There are still plenty of great classic Bimmers out there that can be found for reasonable prices, with these 10 available for less than $20,000 as long as you're willing to scour the classifieds. With the way that prices seem to keep rising every year, a few of them might even net buyers a return on their investment over the long run.
BMW Z3
They might not be the fastest or most hardcore of sports cars, but buyers looking for an affordable rear-wheel drive roadster will find it hard to go wrong with a Z3. Launched in 1996, the Z3 boasted strong sales figures throughout its lifespan, which has ensured that there's plenty of used inventory still on the market (via Autocar). Earlier models featured a 1.9-liter, 4-cylinder engine, and these are usually the cheapest to buy, but the later, more powerful 2.3-liter, 6-cylinder can still be found well within budget. Sales data from Hagerty shows the average selling price for a 2000 model year 2.3-literL Z3 being $11,200, as of October 2022.
That's slightly up from the start of the year, where the average sat at $10,300, but the increase is less than inflation over the same period. That makes it one of the cheapest ways into BMW sports car ownership, and almost certainly the cheapest way to own a Bond car. It's even cheap enough to make it a viable alternative to a Mazda Miata, especially since the NA Miata's tendency to rust has diminished the supply of decent used examples over the past few years.
BMW 325is
It might no longer be possible for the average collector to get their hands on an E30 M3, but there are still a few sporty E30 variants that can be found within budget. The 325is is one of the best options, as it came with sports suspension and a limited-slip differential from the factory. It also featured sports seats for the front passengers and a small rear spoiler. In other words, it's about as close as you can get to an E30 M3 without shelling out for an actual M-badged car.
It's getting trickier to find unmodified examples in good condition, but they do occasionally come up for sale on auction sites, selling for well within budget. For example, an automatic '88 325is sold for $9,460 on Cars and Bids in October 2022, and a manual '87 version sold for $11,850 a few months prior. Both were higher-mileage examples, with 157,000 and 294,000 miles on the clock respectively, but both appear to have comprehensive service histories, so there should be plenty of life left in them yet.
BMW 850ci
The first-generation 8 Series combined power and luxury in a "clean-sheet" design that was unlike anything else the Bavarian brand had offered before. According to Top Gear, a total of 30,621 examples were made between 1989 and 1999, with more than two-thirds of those fitted with the V12 engine option. The 850ci is one of the most affordable of the V12 variants, and it can just about be found within the $20,000 budget.
Two examples recently sold on Bring A Trailer for $18,750 and $20,000 respectively, one with only 64,000 miles on the odometer. It's worth noting that neither car was in show-worthy condition, with the latter car in particular needing further remedial work to fix a persistent airbag warning light, among other issues. Although maintenance costs might be a bit of a headache, you'll be hard-pressed to find another V12 sports coupe for quite such a low asking price. Both manual and automatic versions of the 850ci were produced, but the manuals tend to command a premium that pushes them just out of budget, so unless you're exceptionally lucky, you'll have to settle for an automatic.
BMW M3 E46
The E46 M3 was built between 2000 and 2006, meaning it's a few years off from being considered a true classic by most standards (via BMW). But, this "modern classic" status means it's at a great age for budget-conscious used buyers, as it's already reached the bottom of its depreciation cycle, and values are starting to rise again. Sales data from Hagerty shows a sharp rise in average value for the E46 coupe over the past year, up roughly 15% from $27,400 in January to $31,600 in October 2022. Values for the convertible are also on the rise, up 8.7% year-to-date to an average of $26,200.
These rising values mean it's getting increasingly difficult to find an E46 M3 within budget, but there are a few still available. At the time of writing, an M3 coupe is listed on Autotrader for $14,995 with 121,000 miles, and a convertible with 100,000 miles is listed for $16,495. Buying a cheap M3 comes with plenty of caveats — condition is, of course, the biggest concern, and many of these cheap cars will have incomplete maintenance records. But, if you're willing to take a gamble, an M3 E46 remains one of the cheapest ways to buy a proper M car.
BMW 740iL E38
The BMW 7 Series executive sedan is notorious for its steep depreciation, with a recent Forbes study revealing it had the second fastest depreciation of any car on the market, behind only the Maserati Quattroporte. The car's plummeting value works in the favor of budget-conscious buyers wanting their own slice of German luxury though, with many older 7 Series models readily available for a small fraction of their original retail price.
Those wanting an imposing classic luxobarge should consider an E38 740iL, the long-wheelbase 7 Series that was fitted with either a 4.0-liter or 4.4-liter V8 engine. Two examples went under the hammer on Bring a Trailer earlier in 2022 for $14,250 and $17,500 respectively, both in generally good condition. Like many of the depreciated cars here, it's essential to keep aside some extra funds for any unexpected repairs that crop up, as they won't be cheap. This is, after all, a car that was designed to go toe-to-toe with the all-conquering Mercedes-Benz S-Class, which still remains the segment leader to this day.
BMW M3 E36
Creating a follow-up to the E30 M3 was never going to be an easy task, but the E36 M3 did a pretty good job of filling its predecessor's shoes. With a punchy, naturally-aspirated 6-cylinder engine and great handling, the E36 ticks all the right boxes for a top-tier enthusiasts' classic, yet for now at least, it's still surprisingly affordable.
In October, a '98 M3 Coupe with 150,000 miles on the clock sold for $15,250 on Cars and Bids, and a month prior, a high-mileage '97 example sold for just $7,100. M-badged cars simply don't get much cheaper than that, certainly not anything you could actually drive away. U.S. market M3s weren't quite as powerful as their Euro-spec cousins thanks to stricter emissions regulations, but even USDM cars pack a very respectable 240 ponies. Drivers are able to make the most out of every last one of them too, as both of the M3s sold were 5-speed manuals. As with many enthusiast-spec classics, average market values are slowly but surely rising, with a 4.2% rise over 2022 alone according to Hagerty's valuation tool.
BMW X5 E53
It seems like the rise of SUVs in the current market is unstoppable, with SUVs and pickups accounting for nearly 73% of all passenger vehicle sales in the first part of 2022, according to a study published by Motor1. Part of that rise can be traced back to the success of the original BMW X5, which was launched in 1998. It was designed by Frank Stephenson, the same man responsible for penning everything from the McLaren P1 and Maserati MC12 to the modern Fiat 500 (via Autocar). His design for the X5 set the template for what a road-focused luxury SUV should look like, and its influence can be seen in many of the competitors that followed.
The original E53 X5 is now just about getting old enough to be considered a classic, although a general reluctance from the enthusiast market to embrace "soft-roaders" as collectibles has kept prices low. Data from Classic shows the average resale price sits at just under $13,000 at the time of writing. While it's true that an X5 is never going to give you anywhere near as exciting a driving experience as, say, an old M3, the veteran SUV has a certain charm, and it makes a surprisingly capable off-roader with a bit of modification. Not to mention, it's a historically important vehicle for the brand, as it was the genesis of the X line of cars, which accounts for nearly half of BMW's sales volume today, according to BimmerLife.
BMW 2002
The idea for the BMW 2002 came about essentially by accident, as two BMW executives discovered that they'd both upgraded their 1602 cars with 2.0-liter engines (up from 1.6-liter units, hence the name). They both decided to approach BMW's board about making a production 2.0-liter, two-door coupe, and with backing from American importer Max Hoffmann, convinced the board to give the 2002 the green light (via Silodrome). The car would turn out to be a very important model for the brand, as its success Stateside helped BMW expand its export business and set the blueprint for many of the sporty coupes that followed.
The 2002Tii and 2002 Turbo are the most desirable versions of the car, but they're both well out of the reach of the average cash-strapped enthusiast. Lower-spec models can still be found within budget, however, with two examples recently selling on Bring a Trailer for $12,002 and $10,000 respectively. They might not be fast by today's standards, but with a manual transmission and a light curb weight, they're still excellent to drive.
BMW 635CSi E24
The E24 M635CSi came to be known unofficially as the M6, and it borrowed the M1's straight-six engine to produce 286 horsepower, making it groundbreaking at the time (via BMWBlog). Unfortunately, the E24 M6 is also out of the $20,000 budget, but the next best thing is the non-M 635CSi. Much like its M-badged sibling, the 635CSi featured an inline-six engine, but it made 208 horsepower and was slightly smaller, at 3.4L of displacement rather than 3.5L. It did, however, also come with the top-spec car's five-speed manual transmission and limited-slip differential.
Two examples of the 635CSi recently sold on Bring a Trailer for $17,500 and $16,635, putting them comfortably within budget. Like many of the other cars here, they weren't in concours condition, with a few auxiliary features not working, but that's rather besides the point. The 635CSi combines the best of '80s luxury and sporty grand tourer design, and it's affordable enough that most drivers won't mind a few niggles here and there.
BMW Isetta
The last car on this list is a bit of a wildcard entry, not least because it's going to be near-impossible to get a fully-running restored example within budget. The Isetta is perhaps the most iconic design to come out of the bubble car era, with its bulbous shape and front-mounted door making it instantly recognizable. It was also responsible for keeping the Bavarian manufacturer afloat through some of its toughest years, with its low price and efficient engine attracting buyers that had been badly affected by oil shortages in Europe during the 1950s, according to Hemmings.
An Isetta in running condition will almost certainly be out of budget, but at the time of writing, a New York-based example that's been in storage for a number of years is listed for $19,500. The ad notes that it's not in running condition and will require a "straightforward restoration" to get it going again, but for someone willing to take on the task, it's great value at that price. Average values for the Isetta have risen by nearly 15% in 2022 alone, so it should be a smart investment as well as a very fun one.