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E36 M3 (1992-1999) {Euro - S50 B32 321hp @ 7400 rpm} {U.S. - S52 B32 240 hp @ 6000 rpm}
Total Produced: 71,212 - Years Produced: 1992 to 1999


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Old Tue, Nov-27-2012, 12:06:35 AM   #21
Shameeka
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

Quote:
Originally Posted by hencini View Post
Maybe he's ignoring you because you're the only person out of everyone who has seen this thread asking him to do even *more* work instead of simply re-reading the very clear instructions in the first post and figuring it out for yourself.

It's clear as day: plug in your personal variables (mileage, age), deduct for vert or coupe and it gives you an approximate value (or price if you're using this as a buying / selling tool). It's not rocket surgery. There are other variations, but that's the basic formula. Takes about 45 seconds with a calculator and that's if you have a hard time with long numbers.

why doesn't he just answer the question...here, let me ask again, since it was a simple question that has gone unanswered.....

in the OP it says the formula is

Quote:
Price is a function (fn) = 23235.64 -.06 (mileage) -1802.85 (coupe) -1718.44 (vert) -442.10 (age of vehicle)
and then it offers an example:

Quote:
Example of my car - 97 M3/4/5 = Price (fn) = 23235.64 -.06 (140,000) -442.10 (15) = $8515.17.
my confusion is with the
Code:
23235.64 - .06 (mileage)
part

am I supposed to use 23235.64 for my cars value? or do i use what i paid for it? or some other number? because when he did the example he used the same number but I don't know if that's because it is a permanent part of the formula, or if it's his personal cars value, or is it what he got off of averaging KBB, NADA and Edmunds or something like that, or is it what he paid for his car?

and the
Code:
 - .06 (mileage)
part.......is that telling me to subtract .06 and then where does my mileage get calculated..??? it makes no sense....what does .06 have to do with my mileage? am I supposed to subtract .06 cents per mile? if so say so......


That's why I say this would be a lot easier if you didn't actually show people the formulas used.....not everybody understands that stuff. If all I had to do was fill in the blanks and it spit out a number, it would be done.

i.e.

How much is your car valued? ___________<----enter here

How many miles are on your car? __________<-----enter here

Is your car a Coupe, Sedan or Convertible? _________<--------select one

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Old Tue, Nov-27-2012, 12:30:36 AM   #22
hencini
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While I cannot teach you basic Algebra over the Internet, I will do my best to clarify some things:

1. When there is a number or expression next to a set of parenthesis, you multiply the number or expression outside the parenthesis by the number or expression inside the parenthesis. Example: 4(2)=8

2. Order of Operations says you perform multiplication and division first, then addition and subtraction next.

With that in mind, go back and plug in ONLY your mileage (in miles) and the age of your car (in years), and solve the above equation. The approximate value of the car will be the number on the left side of the equals sign.

The coupe or vert number only needs to be deducted if you own one of those cars. If you have a sedan, ignore both of them.

Also, please rent, borrow or build a time machine and punch the 14 year old version of yourself in the head until he agrees to pay attention in math class. It will make your life so much richer.


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75 years and 350,000 miles of fun:

1998 M3/4/5 No mods, just maintenance

1983 CJ-7 No maintenance, just mods

1983 R65LS No intention of modding it, don't know how to maintain it


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Old Tue, Nov-27-2012, 12:44:32 AM   #23
Shameeka
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

Quote:
Originally Posted by hencini View Post
While I cannot teach you basic Algebra over the Internet, I will do my best to clarify some things:

1. When there is a number or expression next to a set of parenthesis, you multiply the number or expression outside the parenthesis by the number or expression inside the parenthesis. Example: 4(2)=8

2. Order of Operations says you perform multiplication and division first, then addition and subtraction next.

With that in mind, go back and plug in ONLY your mileage (in miles) and the age of your car (in years), and solve the above equation. The approximate value of the car will be the number on the left side of the equals sign.

The coupe or vert number only needs to be deducted if you own one of those cars. If you have a sedan, ignore both of them.

Also, please rent, borrow or build a time machine and punch the 14 year old version of yourself in the head until he agrees to pay attention in math class. It will make your life so much richer.


ahhhh....yeah, i remember some of that now....it wasn't clicking honestly....i can't remember the last time i did math without a calculator and the parts you clarified could not be understood even with one...haha

yeah, it took three years to get through algebra in high school....numbers and me completely disagree....i could spell anything you wanted and can write very well, I even got all A's in Physical Science, Biology, even took AP Physics and got all A's......but numbers are completely out of the question. Has something to do with not being able to correlate them to anything...because they have no physical representation in life, they are completely meaningless to me

so according to this my car is worth $3k more than I paid for it, right on! instant equity!
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Old Tue, Nov-27-2012, 01:07:08 AM   #24
hencini
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Quote:
Originally Posted by M3WhiteSedan View Post
ahhhh....yeah, i remember some of that now....it wasn't clicking honestly....i can't remember the last time i did math without a calculator and the parts you clarified could not be understood even with one...haha

Well, to be honest, if you put the into a scientific calculator (or maybe even the one on your phone, if it allows for parenthesis), it would know how to handle it.

Glad it worked out for you.
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75 years and 350,000 miles of fun:

1998 M3/4/5 No mods, just maintenance

1983 CJ-7 No maintenance, just mods

1983 R65LS No intention of modding it, don't know how to maintain it


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Old Thu, Feb-28-2013, 03:53:50 PM   #25
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

OP???

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Old Tue, Jun-25-2013, 07:45:10 AM   #26
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

ahhh….mathematicians, statisticians, and engineers hiding out in the BMW blog sites, gotta love that !!
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Old Fri, Jun-28-2013, 06:59:52 PM   #27
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

This is awesome. Thank you OP. I'm wondering if you still have the compiled data in a single file that you could share? I would be interested in graphing a scatter plot and doing some additional analysis looking at low milage cars as a separate population (I'm curious have a different slope over time).

We should also consider making a sticky, like the E46 guys, to help us keep the numbers current: http://www.m3forum.net/m3forum/showthread.php?t=309081

Thoughts?
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Old Sat, Jul-06-2013, 06:04:00 PM   #28
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

I just bought my 97 M3 for 5,000 and your formula said it was worth 8,800!! great formula
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Old Sat, Jul-06-2013, 10:19:37 PM   #29
hencini
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Quote:
Originally Posted by Chase97M3 View Post
I just bought my 97 M3 for 5,000 and your formula said it was worth 8,800!! great formula
Is it a raggedy POS?
__________________
75 years and 350,000 miles of fun:

1998 M3/4/5 No mods, just maintenance

1983 CJ-7 No maintenance, just mods

1983 R65LS No intention of modding it, don't know how to maintain it


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Old Wed, Aug-14-2013, 07:14:42 PM   #30
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Default Re: E36M3 Regression Analysis - Purchase Price Findings

I did a similar analysis in 2007 looking at just 1999 models. Here's the executive summary:

This paper develops a linear regression cost model for the 1999 BMW M3. The model is based on the advertised price of a sample of cars from Autotrader.com. The analysis considers many aspects of the car including mileage, exterior color, transmission type, and body style. Dealer type and location are also analyzed.

The result is a 4-factor regression model that includes mileage as the main indicator of value. Other important factors are transmission type, body style, and dealer type.

The main findings of this paper are that the 1999 M3 average advertised price can be modeled with a base price of $25,181 minus 9.5 cents per mile. Additionally, convertibles are worth $1,350 more than coupes, automatic transmissions are worth $2,122 less than manual transmissions, and a dealer charges $1639 more than a private seller. All of these results are significant with 99% confidence.

The model does not predict the value of very low mileage and very high mileage cars, which indicates the useful range of this model is cars within 40,000 to 120,000 miles. Additionally the model assumes the cars are in clean condition (free of major defects). Cars that deviate from this range will not be priced properly.

----
Here's the ppt of the presentation.

It was funny to see such a similar study up here and also scary to see how long ago it was that I did mine!

Enjoy!
Attached Files
File Type: pdf 1999 BMW M3 PRICING MODEL.pdf (104.8 KB, 36 views)
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Discussing E36M3 Regression Analysis - Purchase Price Findings in the E36 M3 (1992-1999) Forum - {Euro - S50 B32 321hp @ 7400 rpm} {U.S. - S52 B32 240 hp @ 6000 rpm}
Total Produced: 71,212 - Years Produced: 1992 to 1999 at BMW M3 Forum.com (E30 M3 | E36 M3 | E46 M3 | E92 M3 | F80/X)