02-22-2010, 03:28 PM
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Member
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Join Date: Jul 2007
Location: Chicago, IL
Posts: 1,830
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Quote:
Originally Posted by RJRDenver
I disagree slightly on the comment about paying 10-15k more for something new vs. going with a CPO. In my case, I got a 2008 with 17k miles on it and paid almost 30k less than it would have been brand new. Its fully loaded with every imaginable feature. The depreciation that occurs in the first three years is horrible and so that's what makes CPO attractive. You are right that you must find a good ride while doing so, but it only took me about 4 weeks from the time I decided I was going to pull the trigger. My factory warranty is still good for 2 more years and then I get the CPO warranty for an additional 2 more years or 100k miles, so I essentially got the 4 year warranty that a brand new model would come with. My previous X5 was also a CPO purchase. I'll continue purchasing CPO well into the future because of the benefits and cost savings.
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The financial savings gap from buying slightly used vs. new in this market has shrunk dramatically---you can get a new one at almost invoice and the low APR rates BMW was offering really offsets the savings. Rates on used are higher generally-- so for example with $0 down: your payment on $50K on a 5 year note with interest is @$900 probably. New car payment on $65K is probably $1,200. So buying used you are saving $18,000 ($72K vs. $54K) over those 60 months. But if you keep your cars 8 years you have 3 years of no payments on new which puts $43K back in your pocket vs. on the used one you only have one year of no payments left ($10K in your pocket). So, effectively new only cost you $29K ($72K - $43K payment savings) over the 8 years while used cost you $44K ($54K - $10K payment savings). Plus not to mention the new car will be worth more at the end of 8 years of probably $5-$10K. Now, if you keep your cars for shorter time periods then that changes this
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