Pre-owned 3-series

[323i Man]

Hey, I'm considering a pre-owned BMW 323i. The problem is, I happen to know that as BMW's become older, they require a lot of money for maintenance. I know someone who just purchased a 325i, and after only 4 months the car is in the shop. Do you think it would be wise for me to purchase a used 323i? Do you know what kind of extended warranties BMW offers?

I test drove a 1999 323i WITHOUT the sport package and was blown away. It was an auto but the handling was like nothing else I had ever driven. I LOVED it. Problem is the air conditioner was broken as was the power sunroof.

I really want this car but unfortunately cannot afford a new one at this time. I just want to know that if I do purchase one, I will have a dependable vehicle. What are your thoughts?

[323i Man]

Bump....can someone please answer my questions.

[Chris90]

Trust me, if you cannot afford a new 325i, you most certainly cannot afford a '99 or '00 323i. That car is right on the depreciation cliff that hits out of warranty BMWs, not to mention the repair costs, few of which will be covered by the CPO warranty. The only stuff that covers is the stuff that doesn't usually break on a BMW.
A '99 323i will cost you $23k today, and will be worth $10-12k in 3 years - worse than the depreciation on a new car.

[323i Man]

Yeah, I figured. Well, hopefully, in the next decade I'll be able to buy a 3 (after I graudate highschool, college, and Med school). Thanks for the info.

I'm assuming BMW doesn't offer extended warranties, am I correct?

[xspeedy]

BMW dealers will peddle an extended warranty, but it is not written by BMW. The dealer is just reselling a warranty.

[Chris90]

They do, called CPO, for 6 year/100k miles - a limited warranty. But it is not worth the $5k premium you will pay for a CPO used BMW - doesn't cover most of the problem areas.
Bigger problem with a used 323i is the depreciation.

Originally posted by 323i Man

I'm assuming BMW doesn't offer extended warranties, am I correct? [/B]

[SARAFIL]

Originally posted by xspeedy
BMW dealers will peddle an extended warranty, but it is not written by BMW. The dealer is just reselling a warranty.

Most dealers that I know only offer BMW CPO warranties, which is a real BMW backed warranty that works just like a regular BMW warranty (good at any dealer) and includes roadside assistance. The only difference is the $50 deductible per visit and the limited coverage areas.

[SARAFIL]

Originally posted by Dawg90
They do, called CPO, for 6 year/100k miles - a limited warranty. But it is not worth the $5k premium you will pay for a CPO used BMW - doesn't cover most of the problem areas.
Bigger problem with a used 323i is the depreciation.

A $5,000 premium for CPO? I doubt that...

Anyway, there is definately a premium, but it buys you many things... a BMW backed warranty, a fully reconditioned car that has had all the necessary maintenance or repairs done, roadside assistance, and availability of low interest financing and cheap leasing options through BMWFS. You are paying more, but it is not just for a warranty. The car should be in better shape than any car you could buy from a used car dealer or a private party.

[xspeedy]

When I mentioned the peddling of a non-factory warranty, I was referring to if an individual brings his or her own car down to the dealer and asks for a warranty. I'm not sure that BMW sells the BMW warranty in such a case. I think it is typically a policy from an independent insurer that is resold. The dealer nor BMW is required to back these warranties.

As far as the preowned cars at BMW I've seen, they ask (sticker) the cars with prices that are very close to what a new one could be had. I've seen lightly optioned 1-2 year old 325i's (15,000 miles or so) marked at $30,000. I could get a new one so equipped through ED for less. I suspect there is a high amount of charge for the BMW preowned warranty.

[2b9m3w]

You can get a nice older e36 for 10 -12k. Like a 95 325i say. Look around for one that's been taken care of and has had recent maintenance.

I have a 93 325i and it's been relatively problem free other than what you would expect on a 10 year old car (battery, radiator, fuel pump).

They handle very well and are probaby faster than a 323 ...

[323i Man]

Thanks for all the info. In late 1993, my dad leased a black 530i with black leather and every available option. It was a nice car, and in the 4 years he owned it, it was relatively reliable. However, we found out a couple of years later it was recalled and the engine had to be completely rebuilt.

So my question is, are there any of you buying your BMW's, and if so, do you plan on getting an extended warranty after 48 months?

[2b9m3w]

Originally posted by 323i Man
Thanks for all the info. In late 1993, my dad leased a black 530i with black leather and every available option. It was a nice car, and in the 4 years he owned it, it was relatively reliable. However, we found out a couple of years later it was recalled and the engine had to be completely rebuilt.

So my question is, are there any of you buying your BMW's, and if so, do you plan on getting an extended warranty after 48 months?

I have a 330 on order. I do not plan on getting the extended warranty. I've had them on past cars and have found that they usually don't pay for themselves.

If I were to get one, I certainly wouldn't buy it from the dealer since you can get them cheaper aftermarket.

[Chris90]

the 530i your dad had probably just had the Nikosil engine block replaced - it was a known problem with those, and covered under a 6 year factory warranty.
BMWs hardly depreciate the first 3-4 years, then drop like a rock for the next 3 after that. Best thing to do is either buy one new or almost new, or wait til they crash to $15k and then buy one.
I plan on buying a 1 series next year, if it's cool (i.e. close to 200 hp and not heinous inside). Euro delivery of course.

[LeucX3]

The only BMWs i have owned are one-year old CPO cars. The first was an 01 325i (which was totalled :mad: ) and the current one is in my sig.

So far, I haven't had any problems with either of them and I didnt' pay top dollar for them either. While the 'up-to 6yr/100k mile limited warranty from original in-service date' warranty may not cover everything, it's nice to know it's there for something.

I wouldn't hesitate paying $1k or so more for a CPO car, but i'd definitely shop around.

[ayn]

For the premium u would pay for a CPO car, I'd pick up a newer 325i instead... I don't think the CPO warranty is worth the extra ~$5k or so...

--Andrew

[rwg]

Where did this 5k number come from? I haven't shopped for e46 cars, but the e36 ///m was not anywhere close to 5k for the CPO version. For e46, I would expect 5k to be impossible. It would put the cost over the sticker in a lot of cases.

As for the CPO warranty, it was something I required. I was, after all, buying a used sports car. It is a true warranty and covers all of the things I am afraid of - such as engine failure. It's not the same as covering maintenance and it doesn't cover wear items, but that's not a warranty's job. The warranty protects from defects. I am happy to know that if the Vanos unit goes or the differential explodes or something, the warranty is there.

[Chris90]

With BMWs I don't worry about the engine or tranny, but if you do then CPO is good to have.
The $5k premium is about what local BMW dealers here in Boston charge - for a '99 323i they will ask $25k, for a '97 M3 they ask $27k etc. Both those cars can be easily bought privately in same condition for $5k less. Boston BMW dealers are really bad on pricing of course. Hell, the local BMW dealer is asking $12k for a '00 Monte Carlo. LOL!!
I'd much rather buy a lovingly cared for private car with all the maintenance records, than a high priced CPO that some stealer tells me was driven by a grandmother. CPO is no guarantee of condition, I've seen some crap CPO cars.

[yumyum1667]

THis big question is how long do you expect to keep it? Many E36 owners are getting 200,000+ miles on their BMW's. If you plan to keep a long time depreciation does not even matter.

If you trade very few years depreciation is a big factor. If you trade very few years it is gonna cost you in the long run no matter what you drive.

Greg

http://www.nillah.net/BMW2web.jpg

[AlexM520]

Keep in mind that 1999 was the first year for new sedan shape (i.e., E46 style) and there were some issues (you have to search archives here on E46fanatics and roadfly.com). I would go with 2000 model.


AlexM520