Invest in the car that’s in your garage
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If logic had entered the equation, I wouldn’t have bought a sports car at all. For a 23-year-old barely six months into his first real job out of college, a used Civic would have been sensible. A Forester, maybe, because winters in Michigan are rough. But I wasn’t interested in sensible. Sensible came with a roof.
It was March 2014, five months into my car magazine career. Whether I would ultimately hack it remained an open question. Seven of my coworkers, including current Hagerty Insider managing editor David Zenlea, owned Miatas. Three or four grand was the going rate for a decent NA-generation driver.
That, too, would have been the sensible choice.
Instead, I blew $8300 on a 2001 BMW Z3 2.5 roadster with 71,500 miles. That sum represented more than half of my total savings, mostly earned from years of waiting tables. Several people told me I was making a dumb choice, and that the money I’d have to put into a 13-year-old BMW made in South Carolina would eventually fill me with regret.
They were wrong about the last part. I love this car to pieces, even when it’s in pieces. The time, energy, and investment I’ve put into my BMW over the last decade has been entirely worth it to me.
Car valuation is Hagerty’s bread and butter. Our insights from comprehensive data, we hope, help people make decisions that will allow them to get—or even just keep—a vehicle that makes them happy. But for all our talk about savvy car purchases, we don’t often acknowledge the upshot investing in the health of one’s car: you get to keep driving it.
I’m not talking about a full rotisserie restoration, though that nuclear option is certainly worth it for some. My mantra has been four-fold:
(1) Be religious about basic maintenance.
(2) Address common failure points before they have a chance to wreak havoc.
(3) Fix things promptly when they break.
(4) Drive it as much as possible.
Long did I pine for a Z3, so the last thing that crossed my mind when I finally got it was what it would one day be worth. I’d picked a great example of a fun car and expected German-car ownership costs. The point was to enjoy it. If I lost my shirt, it was because I wanted a really good tan.
Everything I’ve done to the car myself—from oil changes to brakes, weather-seal repair, headlight bulbs, and new engine gaskets—has been to ensure my spring, summer, and fall are punctuated with weekend spurts of top-down fun. That straight-six song! Those classic proportions! That oh-so-BMW rubber-band-ball shift feel! It doesn’t get old, even as my recently graying beard reminds me I do. And when things go wrong beyond my expertise or bandwidth to handle, I have no problem paying a shop to get the car back on the road ASAP. My rough annual maintenance budget of $1000 sometimes takes a big hit, but usually there’s some left over to roll into next year. So when the choice is between drenching myself in transmission fluid to badly replace a transmission shift-shaft seal and swiping my credit card, I take the latter route.
As a matter of interest, I decided to check—for the first time since buying it—what a five-speed Z3 2.5 in #3 (Good) condition is worth. At the time of purchase, in 2014, $8300 was the exact average value for my car. Not bad for a bright-eyed and bushy-tailed hopeful like me, right? Unlike full-bore M Roadsters and M Coupes, however, ordinary Z3 roadsters like mine were not finished depreciating. Values hit their bottom of $7500 in 2021, eventually rebounding and growing to today’s average of $11,800. Adjusted for inflation, more like $9400.
Lord knows I’m upside down. Just how much so I don’t particularly care to calculate. Maybe it’s the blood rushing to my head, but it’s been a lot more fun than puttering around in a Forester.
Last summer, I realized my Z3 was 21 years old. At that point in its life, Rule #2 applied to a number of components. The entire engine cooling system, for one thing, is suspect on Z3s and related E36 3 Series BMWs at this age or about 80,000 miles. Rubber and plastic pieces like hoses, expansion tanks, and fan blades get brittle and risk cracking, which means overheating that BMW’s aluminum-block inline-sixes do not tolerate well. Brake lines. Motor and transmission mounts. Suspension and differential bushings. This stuff gets tired, but at a rate slower than one can easily notice.
The last thing I wanted was to cook my engine, lose my brakes, or risk damage to my subframe (unfortunately common on Z3s with worn diff bushings, due to spot weld failure). Thanks to a fellow named Bryan Salgado, who runs a popular Z3 and Z4 maintenance group on Facebook, I executed a plan. I ordered a giant, $2900 pile of parts and had them dropped off at Salgado’s home garage in North Carolina, courtesy of a nearby BMW supplier called BimmerBum. He spent three or four days performing all of the necessary work, at a very reasonable rate of $75/hr. Given that my car was something like the eighth or ninth “kitchen sink” project Salgado had done for friends and Z3 club members, I knew I was in good hands.
All told, the work involved a complete cooling system overhaul, replacement of engine and transmission mounts, seat rail bushing repair, stainless steel brake lines, new front control arms, springs, shocks, suspension bushings, differential bushing, and a weighted ZHP shift knob for good measure. My boss, Larry Webster, was skeptical that I’d spent $5500 on an unremarkable Z3.
“Really? It’s worth that much to you?”
“Absolutely,” I said.
And wow, what a difference. I have a story in the works that will get deeper into just how much better the car drove after the kitchen sink refresh, but suffice to say it might drive better now than when I bought it.
Naturally, a wayward traffic barrel rolled into the left lane outside of Louisville, Kentucky, on my way back to Michigan. Nobody was hurt, which is what really matters, but I can’t say I was thrilled to see a cracked bumper cover and dented driver’s door, among other damage. It’s insured (thanks, Hagerty!) and it will be fixed. The car was never meant for the concours lawn, anyway.
I have no plans to part with my Z3, so all I care about is that I can drive it when spring comes around. Those precious moments behind the wheel are the only return on investment I care to track.
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I great article highlighting the pros and cons of classic ownership and driver involvement. The importance of maintenance cannot be understated.
I love your approach to ownership of this great car. In 2007 I bought a black 2000 M Roadster that I enjoyed for 15 years. I was fortunate to live only an hour from a true BMW expert who had cars shipped to him from all over the country for repairs, and with me helping we replaced the subframe bushings, the Teflon shifter bushings, installed a new clutch, and he shortened the shifter handle, among other things. I enjoyed every drive in that car, but recently decided to “upgrade” to a C7 Corvette. If I had the room, I would not have parted with our little “Jellybean”. I really miss the way that car pulled HARD when the S52 hit about 4000 rpm. Enjoyed your story!
I too elect to keep my old car; I chose that exact model for a reason and maintain it as well as I can because, thanks to auctions, I can’t find a restored replacement for a reasonable price. It’s nice that you thanked Hagerty, but really, it isn’t necessary; you contracted with them and you pay for that contract regularly. They didn’t do you a favor, just did what they contracted to do.
I have found that being grateful and saying thank you is never a bad idea. I’ll thank the server who brings me a plate of food, the plumber who fixes a broken pipe, or the alignment shop that straightens out my car. I fear that a world in which we only thank people when they have truly done us a favor would be one with less warmth and common decency. And I am a fan of warmth and common decency!
Thank you for sharing this important perspective. It’s exactly why I continue to put money into my 1976 Oldsmobile Cutlass Supreme Broughm with its slight 20,000 all original miles. Right now, it’s in the shop getting engine refreshed, rechromed bumpers and even the am fm radio rebuilt. Ya, I’m in love with this piece of nostalgia. Can’t wait to drive her all season.
Would love to see a picture!
Great article!
I totally agree, enjoy the car you have, regardless of its value.
Up north in the summer, I enjoy a’69 Mustang convertible that my brother bought new and used the crap out of. It’s been refreshed, is quite presentable, runs great, and isn’t worth so much that you are afraid to leave it parked with the top down.
In Florida for the winter, I picked up a Solara convertible, ugly and unimpressive, but is a pure joy to parade along A1A at sunrise.
This is a very timely article as I am looking at some 2007 Z4 convertible for my wife to have some summer fun. What I am looking at are cars that are on the higher end of mileage. Most have 80 -100,00 miles. What kind of issues should I be concern about that would need repairing at that mileage? We are both in are mid 70’s and I have a 54 Ford pickup for my summer driving but like to get my wife some summer fun. Thanks for reading.
Used to work for Toyota Canada so was lucky enough to get to drive the first Celica that was imported into Canada , Have had a 1984 Supra for about 14 years now , was going to get it certified to give to my grandson for his next birthday. Unfortunately though I was advised that because of the condition of the underbody it would need a lot expensive repairs . Good news is that I have a 1985 Supra in great shape, that apparently now comes with a parts car for him . Pretty sure , like myself , he will enjoy all of the interest and comments people will have when the see the car. So many have commented about owning one years ago , or having a friend or relative who had one , always with a big smile. Guess I will have to start looking for another one for myself.
Love your thoughts on keeping it maintained and driving it. I own a 1966 Corvette convertible I bought in 1979 for $3500. It has nearly 400k miles on the original drivetrain. It also is nothing special in the Corvette world but is special to me. I get the same thrill today as the first day I bought it. Thanks for your thoughts, Bruce.
Love a high-mileage Vette. Good on you.
Great story! Love your enthusiastic approach and practicality!
Hey Eric,
Would you be able to share information on the lift showcased in one of the pictures? I’m looking for something similar, and yours seems to have a higher maximum lift than the ones I’ve seen so far.
Thanks,
Leo
It belongs to Bryan — made by BendPak, it’s one of their mid-rise scissor lifts with the open access middle and a 6000 pound limit.
Great article! I bought a new E-Type roadster in 1963 when I was making less than $8,000 a year. Many miles and years later it is still a joy. Lots of memories.
Excellent article that I can relate to. My dream car was a 2001 Porsche 911 Carrera 4 cabriolet that I bought used with 17,000 miles, more than a decade ago. Still have the car and have invested a small fortune to replace the IMS bearing, upgrade the electronics, etc. And have no plans to sell it or trade it. To me it has been worth the investment.
I totally agree, Eric. I have a 2000 Z3 2.8 Roadster, black on black. I bought it new in August 1999. Love it dearly. I am about to invest in a new top, and your article made me think I need to go ahead and do it, (relatively) regardless of the cost. I’ve got about 116,000 miles on it. My license plate is “ZZZOOOM.” I belong to the local Z-Series Club and we take monthly drives all year (being in Arizona). We “sometimes” exceed the speed limit by “a couple” of miles per hour… Fun, fun, fun. Wouldn’t dream of getting rid of it. I also have a ’95 E38 740iL Beemer. It has about 143,000 miles on it.
Go with a Robbins top and a trusted installer!
I’m with you – and the same way about my 1932 Ford 3-WD coupe. Mama bought it for me in the spring of 1953. Now on an updated chassis while still all Henry steel body, unmodified. At 89, I’m a bit old for much wrenchin’. So, I have a mid-April appointment with a quality custom shop for a major refurbishing – at $5,000 a week. My son, John, has always loved it and one day it will be his.
In 2000 my Dad turned in his drivers license due to poor vision and a fear of injuring somebody in an accident. In 1985 he had purchased a new El Camino, middle of the road model with AC, Power Steering, Brakes and AM FM radio, he had a camper shell with a crawl thru window installed and aftermarket Kraeger rims. Due to his impaired vision he decided to sell the El Camino, an acquaintance of his convinced him that it should bring $8000.00. I had been to an auction recently and knew that $8000.00 was double the going price for the vehicle but being that it belonged to my father I paid him the $8000.00.
I had to fly to Oklahoma City to pick it up and drive it back to central California, I haven’t been sorry about it for a moment. I took the camper shell off and had a tonneau cover installed at the local upholstery shop who also detailed it for me. I am constantly get compliments on how sharp it is which is also a constant reminder of my father who passed 8 years ago, and now the El Camino will be passed on to my son.