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Going to purchase a M5 - needed questions answered

2K views 14 replies 7 participants last post by  gra8fuldd ed 
#1 ·
Hi there

I'm about to purchase a '02 M5 and have a few questions. I plan to lease the car and the dealer is stating the residual value of the car in four years will be 22K...can that be possible? I don't drive too much and the mileage will be under 10- 12K a year so at the end of the lease the car will have aprox 65k (currently 25K on the odometer). The car has a new clutch, tires, 3:42 diff, dinan intake, dinan exhaust, and computer upgrade and it's listed for $64K which seems a bit high to me. I was going to ask for a BMW service history on the car and CarFax. Any other items I should look for before purchase...?

Any advice would be greatly appreciated - thanks
 
#2 ·
Welcome to the board :byebye:

I suggest you ensure the car comes with a warranty as these vehicles are expensive to fix if things go wrong.
 
#4 ·
They can really get you on a used car lease. Unless you can write off the lease for business, a used lease is often not a great deal. At any rate, is the car a CPO car? I would not want a leased M5 without a warranty. Make sure you have warranty thru the end of the lease. Is 22k a reasonable residual for a 6 year old, 60k M5? Tough to say right now, there will be a new e60 m5 when your lease comes up, but it still seems a bit low to me.

As for the service hx and carfax, if you're leasing it, who cares!? A note on carfax, my wife had an 00 audi a6 wagon that was wrecked, and repaired. Not a major accident, but 15k worth of work (a tow truck rolled back into the front end at a stop light) and it never showed up on carfax...
Mike
 
#5 ·
Not sure what CPO means...?

The car has the balance of the factory warrenty 4yr/50K - I'm sure they'll sell me more warrenty if I want. I figured I'd add more mods to the car over the lease and maybe buy the car outright at the end of the lease if the new e60 M5s are crazy priced.


mottati said:
They can really get you on a used car lease. Unless you can write off the lease for business, a used lease is often not a great deal. At any rate, is the car a CPO car? I would not want a leased M5 without a warranty. Make sure you have warranty thru the end of the lease. Is 22k a reasonable residual for a 6 year old, 60k M5? Tough to say right now, there will be a new e60 m5 when your lease comes up, but it still seems a bit low to me.

As for the service hx and carfax, if you're leasing it, who cares!? A note on carfax, my wife had an 00 audi a6 wagon that was wrecked, and repaired. Not a major accident, but 15k worth of work (a tow truck rolled back into the front end at a stop light) and it never showed up on carfax...
Mike
 
#7 ·
$22k seems pretty low. I good low mileage E34's running for that right now, and those bad boys are plenty of years old. I would bargain with him and get the residual up to $30k if all possible. Nothing wrong with a good fight to get a good deal.
Offer him $50k for the car, and try not to lease it for more than $55k. The used market for E39 M5's are really soft now.
Good luck with the deal, but a CPO car is usually the way to go. Happy beast hunting, and welcome to the board!
:cheers:
 
#8 ·
chrisw said:
Hi there

I'm about to purchase a '02 M5 and have a few questions. I plan to lease the car and the dealer is stating the residual value of the car in four years will be 22K...can that be possible? I don't drive too much and the mileage will be under 10- 12K a year so at the end of the lease the car will have aprox 65k (currently 25K on the odometer). The car has a new clutch, tires, 3:42 diff, dinan intake, dinan exhaust, and computer upgrade and it's listed for $64K which seems a bit high to me. I was going to ask for a BMW service history on the car and CarFax. Any other items I should look for before purchase...?

Any advice would be greatly appreciated - thanks
Chris:

How much is your monthly payment and HOW MUCH does the dealer want you to put down (Toatl Out of pocket cash icluding all taxes,etc)?

According to a couple of sources ... The Trade-in value of this particular car ... assuming that NOTHING other than tires had to be replaced by the purchasing NON-BMW dealership ... I say NON-BMW cuz a BMW dealer would CPO this car and warranty it for 6yr/100k miles from original date of purchase ... is $55K on the low end and $58 TOP end. Anymore than that a dealer would not make enough profit to make it worthwhile.

If this was a Private Party transaction ... the car in Good condition is about $59K to about $63 TOPS... and in the RETAIL market this car will sell for as high as $67,700. At least that is what the book says. All these prices are based on West Coast car sales which traditionally are little higher (as much as 7% to 9%) than the rest of the countrry other than New York City and Southern Florida.

This 2002 is considered a 2 year old car regradless of it's condition and these highend cars will typically lose most of their value in the first 3 or 4 years.

The bottom line is ... If I was selling this car I would want to get as close to $65K for it and if I was buying this car I would want to buy it for as close to $55K as I could. That gives about a 20% spread which is about right for the used car sales market.

The lease should be based on the lowest value you can buy the car for and then back-up from there.

I hope this helps.
 
#9 ·
The car isn't being listed as a CPO car since it's being sold at a non-Dinan dealership and only a certified Dinan dealer can CPO a car with these options - although the parts were installed at a certified Dinan dealer. 64k seems a bit high for a '02 but when you add up the mods and accessories it's several thousand less than it would be to build one. I've yet to see a '02 sell for $55k in this nice a shape and with 25k miles. I plan to add more mods and enjoy the car - and this might be a good starting point. I've spoken with the mechanic who installed to parts less than one year ago - he had nothing but good things to say about the previous owner who babied the car.




How much is your monthly payment and HOW MUCH does the dealer want you to put down (Toatl Out of pocket cash icluding all taxes,etc)?

According to a couple of sources ... The Trade-in value of this particular car ... assuming that NOTHING other than tires had to be replaced by the purchasing NON-BMW dealership ... I say NON-BMW cuz a BMW dealer would CPO this car and warranty it for 6yr/100k miles from original date of purchase ... is $55K on the low end and $58 TOP end. Anymore than that a dealer would not make enough profit to make it worthwhile.

If this was a Private Party transaction ... the car in Good condition is about $59K to about $63 TOPS... and in the RETAIL market this car will sell for as high as $67,700. At least that is what the book says. All these prices are based on West Coast car sales which traditionally are little higher (as much as 7% to 9%) than the rest of the countrry other than New York City and Southern Florida.

This 2002 is considered a 2 year old car regradless of it's condition and these highend cars will typically lose most of their value in the first 3 or 4 years.

The bottom line is ... If I was selling this car I would want to get as close to $65K for it and if I was buying this car I would want to buy it for as close to $55K as I could. That gives about a 20% spread which is about right for the used car sales market.

The lease should be based on the lowest value you can buy the car for and then back-up from there.

I hope this helps.[/QUOTE]
 
#10 ·
Chris:

What part of SoCal are you in?

I taje my M5 to Beverly Hills BMW. If you are ever in that area ... stop in the service department there and see Gerd. IMHO ... He is their BEST SA and ask him HOW you get this CPO'D via their facility. It's certainly worth a shot. Tell himn that Ed with the Carbon Black M5 referred you. If it can be done ... Gerd will know how to do it.
 
#11 ·
chrisw said:
The car has a new clutch, tires, 3:42 diff, dinan intake, dinan exhaust, and computer upgrade and it's listed for $64K which seems a bit high to me. I was going to ask for a BMW service history on the car and CarFax. Any other items I should look for before purchase...?

Any advice would be greatly appreciated - thanks
For an '02 M5 with that mileage, the price is ridiculous -- they are way above market. Especially without a CPO warranty, the price is at least $7000 too high (at least in most parts of the country) for them to ask and probably $9k too much for you to pay.

Definitely get the service history and of course the Carfax, but don't trust the Carfax to tell you about damage/accidents as in many cases it will not. Once you get the service history, it will show the code number of all the BMW dealerships that worked on the car. Get these codes translated into the Dealer's name/location (the BMW dealer can do this). Hopefully, the car will have had one prior owner and been serviced at the same dealer its whole life. If so, contact that dealer and ask to get a printout of all the service history (even if you have to pay for this) they have for that VIN. This step will sometimes ferret out a car that has had non-warranty repair work done (i.e. damage/wreck repair).
 
#13 ·
CSBM5 said:
For an '02 M5 with that mileage, the price is ridiculous -- they are way above market. Especially without a CPO warranty, the price is at least $7000 too high (at least in most parts of the country) for them to ask and probably $9k too much for you to pay.
.
THis really depends on the location. My local dealer has 2 02s on the lot with 67k price tags on them (with less milage however), and they just sold an 01 for 60k. These are all cpo cars, but the california market is still a bit pricey. Non cpo 01's seem to be going for about 55k.
mike
 
#14 · (Edited)
mottati said:
THis really depends on the location. My local dealer has 2 02s on the lot with 67k price tags on them (with less milage however), and they just sold an 01 for 60k. These are all cpo cars, but the california market is still a bit pricey. Non cpo 01's seem to be going for about 55k.
mike
Dealers around here have been dropping prices over the past three months as they can't sell their M5s at the ridiculous 60k prices any longer. My local dealer has two '00s that are now priced a full 10k less than the price they sat on his lot at for months -- probably still too high at 48k since they're still sitting there. Finding an '01 with 12k to 20k miles asking in the low 50's isn't uncommon. I know of a nice, local '01 that's been for sale asking 54k now for months with no takers...he's priced too high for the market else it would have sold.



I guess you're right though, CA is a crazy market. The last time I lived there was in 1962 when I was three. I wonder how much our old house in San Jose is selling for now :D
 
#15 ·
That little house in San Jose is now probably about $1.5 Million.

Ever since the DOT COM era ... Real Estate prices in the SF area and South to the Mexican border have SkyRocketed ... and I mean Clear Outta Sight and they have never looked back.

To give you an idea ... I bought my first house in a nice Los Angeles neighborhood ... about 2 blocks from Fred Segals first clothing store; Melrose and Crescent Heights for those that know the area and I paid $78K in 1976. I sold that house in 1988 for $205k. That same house sold again in 2001 for $1.1 million and I hear that the owners who I had sold it to never did anything more than paint and they had remodeled the Kitchen and the Master Bathroom in the past 12 or 13 years that they lived in it. My guess is that today, that same house is about $1.5 to $2.0 Mil. It is amazing what the prices of real estate is in Southern California.

BUT ... people keep coming here regardless of the prices.

Sorry for getting off the subject.
 
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