Dipping my toe or just BS'ing myself?
09-16-2008, 06:31 PM
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The '06 550 I was planning to bid on at Manheim PA disappeared during the pre-sale so I've been looking over the other currently available cars. An '05 545 has started to appeal to me more & more, but am I just having buyer's frenzy and losing my objectivity on this particular vehicle? Here are the stats:
2005 545 Sport/Step
Silver Gray, Blk leather, anthracite maple
Cold pkg plus heated rear
L7/6 disc/Sat
Nav
This is an off-lease car being sold by the company that handles all of BMW Financial's cars. It needs 2 rear tires but the overall condition is a 4.7 clean on the 1-5 scale. It also only has 1 key. It does also have a short 51k miles so it is out of warranty.
Plus sides? The MMR on it is $23k (anticipated auction sale price). I'll bid up to $22 and if I don't get it that's fine. With a base $22k, $400 auction fees plus $1000 for two run-flat rear tires and a second key, tag/title/tax in NC I'm looking at no more than $24,300 in it. I figure I can drive it for a year (it will be a weekend car only as I have a company car) and if I like it, sell it for very close to what I have in it and buy an off-lease 550.
I have confirmed a clean Carfax and talked with a very nice SA at a dealership who confirms all maintenances have been done with no warranty work other than the airbag recall and the seat sensor thing.
So am I being smart and dipping my toe in the expensive BMW waters or am I BS'ing myself in thinking it's smart to buy an out of warranty car?
2005 545 Sport/Step
Silver Gray, Blk leather, anthracite maple
Cold pkg plus heated rear
L7/6 disc/Sat
Nav
This is an off-lease car being sold by the company that handles all of BMW Financial's cars. It needs 2 rear tires but the overall condition is a 4.7 clean on the 1-5 scale. It also only has 1 key. It does also have a short 51k miles so it is out of warranty.
Plus sides? The MMR on it is $23k (anticipated auction sale price). I'll bid up to $22 and if I don't get it that's fine. With a base $22k, $400 auction fees plus $1000 for two run-flat rear tires and a second key, tag/title/tax in NC I'm looking at no more than $24,300 in it. I figure I can drive it for a year (it will be a weekend car only as I have a company car) and if I like it, sell it for very close to what I have in it and buy an off-lease 550.
I have confirmed a clean Carfax and talked with a very nice SA at a dealership who confirms all maintenances have been done with no warranty work other than the airbag recall and the seat sensor thing.
So am I being smart and dipping my toe in the expensive BMW waters or am I BS'ing myself in thinking it's smart to buy an out of warranty car?
09-16-2008, 06:41 PM
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First, relax. It's just a car. BMW made lots of V8 5ers and it's easier to trade $ for a car than it is to find somebody that will give you $ for your car.
That being said, at $24,xxx you wouldn't have too much exposure into a 4-year old car. I'd look to see what an '03 540 might sell for to get a rough idea what your car might be worth in a couple of years. If that number (and find a selling price, or the MMR price, not a dreamy asking price) is acceptible to you you might be okay.
You might need several thousand a year for repairs/maintenance... but you might not too. If swallowing an occasional bill won't bankrupt you, again, you might be okay.
The thing is only 3-4 years old, and automatic 5ers don't get whupped on like M3's might.
Of course, if you got one from a dealership that was CPO'd you wouldn't have any repair costs for along time.
So... do you feel lucky?
That being said, at $24,xxx you wouldn't have too much exposure into a 4-year old car. I'd look to see what an '03 540 might sell for to get a rough idea what your car might be worth in a couple of years. If that number (and find a selling price, or the MMR price, not a dreamy asking price) is acceptible to you you might be okay.
You might need several thousand a year for repairs/maintenance... but you might not too. If swallowing an occasional bill won't bankrupt you, again, you might be okay.
The thing is only 3-4 years old, and automatic 5ers don't get whupped on like M3's might.
Of course, if you got one from a dealership that was CPO'd you wouldn't have any repair costs for along time.
So... do you feel lucky?
09-16-2008, 07:00 PM
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Ask your bank about after market warranties. I bought a two year drivetrain warranty for $1200. I'm still exposed if I have window regulator issues but at least im covered from a motor/transmission perspective.
09-16-2008, 07:08 PM
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My Ride: 2008 550i Jet Black on Black Leather, SAT with Paddles, Logic 7, Comfort Seats, NAV, Sport Package, PDC, Xenons, Sirius, Trinity 12W LED Angel Eyes, RPi GT Exhaust, M rear spoiler, ACS Roof Spoiler, Tinted Tail Lights, Bimmian Carbon Fiber Pillar Trim, Bimmian Shadow 550i emblem, RPi Scoop, E60 Forum Cling, Mtec bulbs in fog lights, Mtec 2W LED for License Plate Light Bulbs, K&N Filter, Bimmian LED Smoked Side Markers, Blackout roundels, Carbon Fiber Kidney Grills.
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Never EVER own a BMW out of warranty....it will rip your heart out through your wallet!! 
If you can secure a decent warranty for the 545i, then by all means buy it and enjoy the hell out of it!! 
If you can secure a decent warranty for the 545i, then by all means buy it and enjoy the hell out of it!!
09-16-2008, 07:17 PM
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Originally Posted by flyingpuck' post='671015' date='Sep 16 2008, 11:08 PM
Never EVER own a BMW out of warranty....it will rip your heart out through your wallet!! If you can secure a decent warranty for the 545i, then by all means buy it and enjoy the hell out of it!!
If you can secure a decent warranty for the 545i, then by all means buy it and enjoy the hell out of it!!
09-16-2008, 10:23 PM
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My Ride: 2008 Alpine White 550i Sport, Cream Beige Interior, 6-Sp Manual - retired 9/2011
Originally Posted by bimmerlust' post='670981' date='Sep 16 2008, 10:31 PM
...but am I just having buyer's frenzy and losing my objectivity on this particular vehicle...
, but I say buy one with fewer miles under warranty. Why worry about the potential ticking time bomb? Spend a few bucks more and buy some piece of mind, and a sweet E60. 
09-17-2008, 08:00 AM
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another thing in favor is this calculation...
The difference in purchase price plus interest over the life of the loan of the car between the 545 I'm considering compared to the '06 550 that got away is around $8516.40. Said 550 had 32k miles on it, so the analysis comes down to this...which is more likely to happen? That I would spend $8516.40 in 2 years on an out of warranty 545 or not? It would take me 2 years to drive the 28k miles remaining on the 550 so that means I would have 2 years of warranty left. Which is more LIKELY to occur? I think it's LESS likely that I would incur that much in non-maintenance expenses on the 545 in the 2 years. Plus I would have more $ to do MODS! Whoopee!
The difference in purchase price plus interest over the life of the loan of the car between the 545 I'm considering compared to the '06 550 that got away is around $8516.40. Said 550 had 32k miles on it, so the analysis comes down to this...which is more likely to happen? That I would spend $8516.40 in 2 years on an out of warranty 545 or not? It would take me 2 years to drive the 28k miles remaining on the 550 so that means I would have 2 years of warranty left. Which is more LIKELY to occur? I think it's LESS likely that I would incur that much in non-maintenance expenses on the 545 in the 2 years. Plus I would have more $ to do MODS! Whoopee!
09-17-2008, 08:19 AM
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Model Year: 2015
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Originally Posted by bimmerlust' post='671434' date='Sep 17 2008, 11:00 AM
another thing in favor is this calculation...
The difference in purchase price plus interest over the life of the loan of the car between the 545 I'm considering compared to the '06 550 that got away is around $8516.40. Said 550 had 32k miles on it, so the analysis comes down to this...which is more likely to happen? That I would spend $8516.40 in 2 years on an out of warranty 545 or not? It would take me 2 years to drive the 28k miles remaining on the 550 so that means I would have 2 years of warranty left. Which is more LIKELY to occur? I think it's LESS likely that I would incur that much in non-maintenance expenses on the 545 in the 2 years. Plus I would have more $ to do MODS! Whoopee!
The difference in purchase price plus interest over the life of the loan of the car between the 545 I'm considering compared to the '06 550 that got away is around $8516.40. Said 550 had 32k miles on it, so the analysis comes down to this...which is more likely to happen? That I would spend $8516.40 in 2 years on an out of warranty 545 or not? It would take me 2 years to drive the 28k miles remaining on the 550 so that means I would have 2 years of warranty left. Which is more LIKELY to occur? I think it's LESS likely that I would incur that much in non-maintenance expenses on the 545 in the 2 years. Plus I would have more $ to do MODS! Whoopee!
Well, having said this then yes, from a financial perspective, buying the 545i would deifinitely be more bang for your buck. These cars last forever and besides the occasional maintenance (oil change every 10k, brake pads every +15k, etc) I think you will not be having any major issues for a long time... unless you drive your e60 like a 15 yr old...
