Buy new or second?

[A B]

Hi Fellow beemers,

I'm considering replacing my e90 325 (70000kms on clock) but was shocked when the dealer offered me a trade-in of 200k less than what I paid for the it - 4 and half years ago.

I'm considering upgrading to an X5 but I hate to think what trade-in they will offer me 5-6 years from now.

Do BMW always drop in value so quick? Is it actually more feasible to buy a pre-owned car?

 

[MikeR]

:thumbdo: yeah had the same shock....its bad now. the best is to get second hand, or wait a few more months for the newer X5's to break cover and the prices will drop, yrs wont drop much less.

 

[Pr0PheT]

Personally I reckon pre-owned is the way to go, you get such great deals for cars with around 20k km, they have just been driven in and you are paying 20 - 30% less than the new price, besides the joy of the new car only lasts a few months then the new car is also used and worth about 15% less. Another bonus is that with preowned cars you can get really great extras and they are just included already plus dealerships can retrofit certain options for much cheaper if you are buying from them.

 

[Sankekur]

It varies from person to person, some people don't want a second hand car. In my opinion though it is the way to go, because then you can be the one taking advantage of the much reduced price of second hand BMWs. Buying new is just not economical I think.

 

[Bemused]

Note that as a rule of thumb, when a brand new car is registered to someone the value drops by +/- 20%. That's before it's driven off the showroom floor. So as an owner that has driven it for a few years, to lose say 30 or 40% is quite a low figure in reality. Tough but, c'est la vie.

 

[gconry18]

I think the E90 value is currently dropping because they are trying to sell them off before next years model hits the showrooms.

 

[herr bmw]

i did go pre owned and im smiling.

got exactly what i wanted and paid at least R200 000 less than a new one

 

[ekseniks]

I always think its better to go pre owned and use that money you would have spent on a new one for some nice things for the car, like a de-cat or nice oem mags or m-tech bumpers or something... but that's just me...

 

[zaleonardz]

So how much money do you want to throw away in a short time.

50k a year is about right for a BMW in terms of depreciation, some have been known to be even worse within their first 3 years, in particular the X5.

Example

2 year old X5 with motorplan 600k
same car at 5 years old without motorplan 105 on the clock.. 200k

Now... how do you justify that, I say go for for the 5 year old, pay 200k for it, take another 100k (which is by far too much, but illustrative of my point) even if it is in monthly premium format, and stick it away in an account.

You still represent a 50% saving in terms of initial investment, and actual running cost per km is far less, as you are already at the bottom of the depreication cycle..

Now, in temrs of reliability issues, BMW's that are maintained are reliable, end of story....

Some of the best motors ever made was the N54B30 (the 3 litle petrol) as well as the M57 (the diesel 3.0), any of the N62 V8 engines are out of this world, they are reliable and super strong... end of story.

Gearboxes go poof, this is true, but a rebuild is going to cost you 30k, budget for it and its no issue.

Turbo's and injectors go on the diesel, this true, but a turbo is a servicable item anyway, people have no problems changing a clutch at big money, and its perfectly acceptable, but oh my lord, we cant change a turbo... thats just wrong...

IF you do find a car that you like, pay somebody to take a look at it, somebody that actually know what they are doing.

 

[P1000]

Leonard, you mixed up some of your M's and N's in the engine codes

 

[lowka]

IF you do find a car that you like, pay somebody to take a look at it, somebody that actually know what they are doing.

+1

 

[1two5guy]

My dad got quite a good price on the X5, apparently theres a demand for used X5 diesels.

 

[zaleonardz]

My dad got quite a good price on the X5, apparently theres a demand for used X5 diesels.

Wow, thats amazing, and really good news.

I was under the impression that you could not give away a diesel BMW for love nor money....

I was thinking about my reply to this post, and forgot to add, the BEST value for money to be had in any BMW these days is a 4 year old 7 series... 745's and even the beloved 730d... what a car...

 

[Sankekur]

I was thinking about my reply to this post, and forgot to add, the BEST value for money to be had in any BMW these days is a 4 year old 7 series... 745's and even the beloved 730d... what a car...

+1000 I have seen e65 745i's going for less than e46 330i's with more mileage on.

 

[zaleonardz]

Its a pity I sold mine, I will own one again, very very soon...

 

[saturnz]

of all the cars I have bought second hand, I have never sold one for less than what I purchased it.

Of the cars I currently have, two examples I could sell for more than what they went for new, in nominal terms ofcourse.

So I really don't see an argument for purchasing a new car if wealth preservation is your overall long term goal.

 

[Philip Foglar]

If you can afford new and therefore comfortable with only having a car for two years before trading in on a newer model, then that's fine. You are going to loose, but not as much if you keep the car for longer when bought as new. I personally don't do very high mileage, so I buy a car for long term ownership - accept the fact that it will depreciate in value over time. So in my case second hand makes the most sense - rather let someone else take that initial and massive knock in depreciation.

Ultimately (and this is what many fail to realise), buying new or second hand both have their risks. That is, you can buy a new or used car and in each case have just as many problems. And just because the car is new does not mean that the warranty is going to always sort out the issues - have seen people all torn-up with endless new car issues compared to someone who has bought an older second hand otherwise identical car for a fraction of the price with not a moments hassle!

FWIW, I would be reluctant to buy a second hand turbo car - petrol or diesel. But then again, same problem as above, can't always win.

 

[andrewbuch]

I say 2nd hand..

We just got a 2010 E90 320i (for my mom) with 15K km less than a year old.. paid R275k for it.. value is R380K (according to insurance)


Now our Jeep Grand Cherokee 4.7V8 overland black pearl (full house) we got in 2005 with less than 1000Km's on it. paid about R500K... It now has 58K km's on it & the dealer offered my dad R160k.. insurance value it at R180k .... Only reason we got this jeep is cause we got another one before it & the only place who would give us money for it was to trade it in on a newish jeep...


So basically, go 2nd hand...

 

[Cole]

new car is alwasy nice, but man the hit you take on it is just not worth it... :nonono:

 

[Nastaliq]

I think the glaring opinion from all teh guys on here, and from myself, is its better (in monetary sense) to go for used, with low mileage if possible. Someone else already paid for all the extras, all the new car niggly wigglys are fixed (rattles, seals, fittings), the car is already run in and you are ready to roll out in style.

There is something to be said about going to BMW to pick up a car with 2km on the clock, new car smell, plastic on the seats, not a bit of brake dust on the mags...........but there is also something to be said about the price you pay for that experience. If you search online,the opinion from financial gurus - ous that know this stuff, they all recommend buying 2nd hand, even if you can afford new.

Although, if you are one of those okes who has never driven a 2nd hand car, then driving used is going to be an adjustment for you......