I keep drooling over the e60 even though my price range is more in the e90 area and as I was scanning thru the certified pre-owned BMWs at my local dealership I noticed a 2005 525i for $34,000. If that were the price tag on a brand new 3-series, I would be able to lease it for around $450/month with very little down payment. My question is: What are the leasing rates for Certified Pre-Owned cars? Do they change the formula for calculation of depreciation on a used car? Is it stupid to lease a used BMW in the first place? Just wanted your guys' input on the subject. In a perfect world I would already be driving a 2007 525i with the Multi-Contour heated seats and Navigation, but I will be stuck in my Honda until August of 2008 and I don't think I can come up with a sizeable enough down payment for a brand new e60 by then.

 

Nobody has an opinion? I'm shocked!

 

I purchased a 2004 certified pre-owned 545i. I could not afford a brand new 550i with the options I wanted (over $65K). It is nice because the car looks and feels brand new. Even my friends get shocked when I tell them it is almost 2 years old! Why not let someone else (who can afford it) take the first $20K depreciation hit?

My BMW dealer that sold me the car gave me excellent BMW financing on it. I don't remember exact APR but it was in the 5.9% (maybe 4.9% ?) range. This is the same rate I would get if I bought a brand new one I think. For another 2 grands, I purchased extended BMW warranty to 100,000 miles. I also paid a little more to extend the free maintained all the way to a 100,000 miles.

If you want to get a certified pre-owned E60, I highly recommend that you buy it. It is an excellent car that should last you for a long time. It is also highly upgradeable! I love the CIP updates. I already retrofitted MP3 and Bluetooth! You can also purchase additional extended BMW warranty and extend the free maintenance program all the way to 100,000 miles/6-years.

For around $35K assuming you put 5K down your 5 year payments will probably be in the $550 range with BMW special financing. Be very careful though because some dealers rip off the customer on the APR. The loan officer can make more money if he or she gives you a higher rate! I suggest you call different BMW dealers first and ask for a pre-owned certified e60 APR rates from BMW. You may find this info online too.

Whether you choose to buy or lease, good luck to you!

 

Used car leasing has a few downfalls:

1. The leasing terms (residuals, money factors) are not as good as the subsidized new car leasing terms (at least for BMWs).

2. The price of used cars is much more subjective (you're more likely to pay too much, esp. from a dealer).

3. The used car will have less warranty/free maintenance remaining (perhaps a significant issue with a used e60).

4. Used car selection is limited - may not get color/options that you want.

After considering all that, if you work hard enough, you can probably get a new 525 for about the same monthly payment or just a little more - and have the full warranty/maintenance term.

 

I have also just bought a BMW certified pre-owned 2004 545i (Hi Aosman !) and am absolutely delighted with it - its basically like a new car, the only giveaway is the 30k on the odometer and a few creases in the black leather interior on the drivers seat. Grey/black with lots of nice extras like sport pack, active headlights, Logic 7 etc...

I was also advised NOT to lease a used car by my BMW dealer - as stated above you will pay almost the same rate as a new one - it doesn't make sense to me but the way residuals are calculated for leases you end up paying almost the same to lease as a new vehicle - seems crazy to me but thats the way it is.

You will get a lower payment buying (not leasing) a certified pre-owned as the first owner has paid the main chunk of depreciation for you - I too got the 5.9% rate that seems to be across the board at BMW dealers ATM. Like I said mine is basically a new vehicle with full BMW USA warranty till 100k miles or June 2010, and I still have 18 months of full maintenance included too. I paid exactly $40,000 + tax for something that cost $63,000 2 years and 30,006 miles ago - seems a bargain to me.

 

Correct, leasing a used vehicle makes no sense and is a win-win for the dealership. You should be able to land a 530i, nicely loaded for about $569 a month with 2K out of pocket, 12K mileage.

 

Thanks for all your input guys! Guess the bottom line is just to keep saving my money until I can make it all work.