X5 Purchase Decision - New, Used or Wait?

[caseyschulte]

Hi,

Another newbie here considering joining your ranks - I was hoping that you folks wouldn't mind sharing your insights on my purchase decision. Here's my situation - my wife and I are expecting our first child in June, and my wife wants to trade in her 323i for something with a bit more room. We both really like the current X5 and, like many, are fairly nervous about what the new X5 will look like (considering our feelings about each of the new 7,5 and Z4). We're currently considering buying a new 2006 X5 4.4i or a 2005 "executive demo" 4.4i, and are looking for something moderately equipped (i.e we don't necessarily want the extra $5k in options that often show up in fully loaded X5s).

In terms of the new car, we've been looking for the following - sterling gray / black X5 4.4i with premium, sports and cold weather packages + 19" wheels (MSRP right around $60k). The local dealers here in Northern California finally seem to be budging a bit more - I've been quoted a price of $1500 over invoice, which in my experience is a pretty good deal in this area. I suspect that this may stem from an urge to start clearing inventory although this is by no means a car that will be sitting on the lot come August / September.

As I alluded above, we've also been considering buying an executive demo - e.g. we've found a 2005 with sports and premium packages + 19" wheels with only 10k miles for just over $45,000. I haven't seen the car in person because it's down near LA, but it seems like an option worth considering since a new car probably won't stay new for long after the baby comes + someone else will be taking the initial depreciation hit.

A few specific questions -

* When, if ever, will more aggressive incentives kick in on the new X5s? At that point, will inventory be fairly thin on popular colors / reasonably optioned X5s?
* Any one have experience with executive demos? Do they tend to be in pretty good shape? Is there enough volume to find what you're looking for option-wise, or is it pretty much hit or miss?
* In terms of depreciation, do you think the old style X5s will take a big hit when the new X5s come out, or is this already being reflected in the price of new and used X5s in the market?
* Is there any difference in the reliability of the '05s and '06s, or were most of the kinks worked out by '05?
* Which approach do you think makes more sense - negotiate a price within $1k of invoice on a new X5 or see what I can find in an executive demo (acknowledging that I basically want what I want in the way of options)?

Thanks in advance for sharing your wisdom on this topic.

[statdoc]

I tend to buy new, just because I have the money to do so, and I like knowing that no one has abused my car before I get it. The CPA's and other financially more prudent will tell you it makes much more $ sense to get a slightly "pre-loved" vehicle. They are right. I am willing to pay the "stupid tax" (as radio financial guy Dave Ramsey calls it) to get a car that is a virgin.

[breytonX5]

Welcome CaseySchulte!! You definitely have a dilemma here whether to get 05/06 or wait for all-new 07 X5. Personally I would never buy a car in its last model year due to a variety of obvious reasons but having said that there're great deals that can be had. As far as I know there're no issues with 05 or 06 model years. Good luck in your decision.

[X5Jay]

OMG, another newbie! Welcome Casey - I think you'll enjoy the board and, eh..., ah.., hold on to your hat!

...I like to buy new too, but it's not because I can, it's because I'm insane - I just like what I like (new) - so I call it my hobby to justify it to other people, but it really is a sickness. Do you have it yet? - You're certainly well on your way if you're hangin' out here... GL w/your decision & let us know how you make out!

[developmentallychallenged]

I was just in the same situation, we wanted Sterling gray/black interior with premium,cold weather, heated steering wheel and navigation. In my area we were looking at 2K over invoice. We got lucky and came across a CPO'd O5' with all the above options in sterling gray/black interior with 8,600miles with headrest lcd's, cd changer and rear climate, load floor etc. I worked the deal down to $46,900. The vehicle is pristine, I'm picking it up tomorrow. I figured that I just saved $11+k over a new '06...it seemed worth it since it had everything we wanted and more. As referred to..it makes more 'financial' sense to do it this way. Most of us in this price range 'have' the money to do both..but with a baby on the way..$11k in a trust @ age zero pay for a year of college @ 18yrs

[caseyschulte]

Thanks for the warm welcome. I, too, have the illness and historically have paid more than my fair share of the "stupid tax." I just happen to suspect that I will have a hard time maintaining the car to my more typical rigorous specifications - i.e. I've seen what happens to other SUVs in baby-hauling mode. As a consequence, I'm trying to bring myself to buy used - though you guys aren't really helping!

Originally Posted by breytonX5

Personally I would never buy a car in its last model year due to a variety of obvious reasons but having said that there're great deals that can be had.

I understand this line of reasoning - but see exhibits A-C in the latest 7, 5 and Z4. While the new 3s aren't that bad, I still prefer the old 3s. I just don't have any faith in the design program at BMW anymore ...

[caseyschulte]

Originally Posted by developmentallychallenged

I was just in the same situation, we wanted Sterling gray/black interior with premium,cold weather, heated steering wheel and navigation. In my area we were looking at 2K over invoice. We got lucky and came across a CPO'd O5' with all the above options in sterling gray/black interior with 8,600miles with headrest lcd's, cd changer and rear climate, load floor etc. I worked the deal down to $46,900. The vehicle is pristine, I'm picking it up tomorrow.

Just out of curiosity, where did the negotiations on your car start? All the CPOs around here seems to be starting out at $52k+, so I'd just kind of given up on CPO. For whatever reason, the executive demos are LOADS cheaper ($6-7k), and with that kind of cash, you could get the car inspected and buy the extended warranty to match the CPO and still have $4-5k left over. Or is there something I'm missing?

[Thunder22]

I would never buy a car in the first year of production. Ever. I would definitely buy a car in the last year of production before a facelift, the manufacturer tends to have great deals and all of the bugs/issues were probably worked out a long long time ago.. That being said, there are those who like to hvae the latest/greatest and don't want to be the last one on the block to have it. I also don't like to buy used, there are too many unknowns as to how the car was treated.

[BlueX5guy]

I got mine used (first used car for me in 12 years) and have no regrets. The CEO would not let me pay the stupid tax, but hey you-got-to-do what you-got-to-do to get your X....

Dennis

[asawadude]

Welcome to X5 World!

Here's my take on your questions -

At the present, the BMW dealers have a ton of remaining '05 X3's and X5's to move. BMW will likely gear their price incentive programs towards leases instead of retail purchases. Since the '05's are virtually the same as the '06's, I don't see BMW as being in a great rush to move them. Next year might be a different story when the '07's come out.

Executive demos are driven by BMW employees up to some mileage limit - I believe it's somewhere under 15K. Beyond that, the car can no longer be sold as a new vehicle. For the most part, they are probably good condition vehicles, but there are probably exceptions. Have them pull the service history, check to see if there any major repairs done while in fleet use. Ask for a CPO type inspection to get the status of all major parts and systems. Do the same with CPO vehicles - get a copy of the full CPO service record and service histories which the BMW sales people can pull up immediately from their internal website.

My guess is that the Gen 2 '07 X5 might impact the '00-'03 vehicles, but won't impact the '04-'06 facelift models very much. The '04-'06 facelift models already have the latest and greatest N62 Valvetronic engines, 6 speed automatics, and X-Drive. Unless the '07 X5's have some new great, spectacular features with a "gotta have it" factor, I don't see how the '04-'06 facelift models are going to fall down greatly in value. It looks to me like the new X5's may end up looking like a big X3. Throw I-Drive into the equation, it make take awile before the new X5's gain acceptance.

Don't be afraid to shop in Southern California - there's plenty of BMW dealers in a very small radius. What better way of enjoying a new car than by driving up home up Highway 1?



Regards, Mike