Great Forum. I have been reading the boards for awhile now. I have determined that I am going to buy an E60 BMW. I think it is the best blend of sport and luxury in the auto world. Okay, here is the first deal: I can pick up a used CPO 2004 530i from a BMW Dealer, 24,000 miles, automatic, sport package, premium package, navigation for $44,000, including California tax of 7.97%. So, selling price is $40,500 with $44,000 being the out the door price. I REALIZE that a car is a depreciating asset and that the enjoyment is what you are paying for, but I also think it is prudent to always consider the financial side of ANY purchase.

Now, for the second deal: I can buy a new 2006 530i, automatic, sport package, premium package, navigation for $56,000 out the door, this includes the California tax of 7.97%, license, and doc fees. So, the selling price is $51,500 with $56,000 being the out the door price.

As you can see, their is a $12,000 difference between the two vehicles. I know the smartest financial decision is to get the used car, since the depreciation has taken its greatest hit, right?? But, driving a New car is also quite an experience and the 2006 has the bigger engine.

Now, I plan on keeping this BMW for three to four years. I understand the next generation BMW should be out in model year 2008 or 2009. So, I would be selling either car in three or four years. ( I know some good folks might suggest leasing, but leasing is NOT an option for me. I do not feel comfortable with a lease.) At that time, I would either buy another two year old E60 with the N52 engine, or the New successor to the current N52 engine E60.

So, given that I am buying either the 2004 530i or the 2006 530i, I guess the question I am asking is this: In three to four years when it comes time to sell either E60 to purchase the successor to the current E60, or another two year old BMW with the current new engine, what do you think will be the real dollar difference between the 2004 and 2006? In other words, will that $12,000 gap grow bigger or close, or heck, I am starting to ramble... I hope this makes sense to some of you nice folks. I am just trying to make the best decision possible. Any advice or opinions are greatly appreciated. Thank you.

 

If it were me I'd get the 2006. There have been a number of changes and improvements since 04, in this case the engine in particular but also a number of bugs/glitches were ironed out. If you're going to keep the car for a while I think the 2006 would be worth the extra money to you. Good luck whatever you decide!

 

I second what swajames noted above. I'm not inclined to buy the first model year of any vehicle. My last car was a 1998 328i, which happens to be the *last* year they made this E36. I have over 170,000 miles and the car runs great. Not exactly what was experienced by many who purchased the E36 the first year it came out (cooling problems, dashboard delaminating, etc., etc. etc.) :thumbsdown:

And so it has been with my recent purchase of a 2006 530i. Remember: In addition to all the "bug fixes" there is also the larger, more efficient in-line 6 cylinder engine. I've driven both the old and new 6 cylinder and I did notice a difference in performance.

Good Luck with your choice.

 

Go for the 2006 model definitely. 2004's are early in the life-cycle of E60's and quite a few improvements have been made. E.g. new engine, new sofware, higher quality interior with new soft touch surface finish on plastics (since March 2005 production?), improved door seals, etc.

The current E60 will most likely get a facelift summer of 2007 (i.e. MY 2008). All new next generation replacement (F10) might hit the dealerships in early summer 2010 in Europe (coming to US late summer as MY 2011).

 

Politics2u,

As former owner of the 2004 version of the E60 let me be the first to say it is a great car. I guess I was one of the lucky ones that did not have any of the problems . I just traded my car for a 2006 550i and it was a tough decision. One of the factors that drove that decision is the technological advances the others are talking about. There were many items (i.e. voice recognition, ARS, and etc...) that I liked that were not available when I purchased in 04'.

Long story short, I would go for the 2006. Take a look at posts in the forum regarding resale value and you may find that the depreciation hit may not be as bad as you think. Kelly Blue Book rated the 2006 E60 in the Top 10 for resale value. The link is below.

Good luck and either way you end up with a BMW

B2


http://www.kbb.com/kb/ki.dll/ke.kb.sp?kbb....toshow/2006_CA&

 

Welcome, and come back. Personally, I would not be too worried about the change in the $12k difference. But, it seems to me that this difference would shrink over three years since the new car would be depreciating at a faster rate than the older car. Still, I'd go with the new car because I think I'd get extra enjoyment from it for many reasons including those already mentioned.

 

If you follow your head, then get the 2004. No brainer.

Follow your heart? Then get the 2006. Obvious choice.

Sometimes there are things more precious in life than money ....

Enjoy whatever you get and never look back ....

 

I would get the 2006 if the extra 12,000 is not a problem to you financially. The main reason being that first year production Bimmer aren't exactly the most reliable ones. Have had bad experience with the first year production E46. But why do I get it, because I needed a car and when the E46 first came out I was in love but you know men are when they see a newer toy (the E60) they just can't help it.