Want to Buy Advice on buying an E39 M5 - The Unofficial BMW M5 Messageboard (m5board.com)

Siooma · 10th May 2009, 16:57

Folks, I'm new to this site-- was put on to it by my buddy who drives an E39 M5. After driving his car I've decided I want to get one too. (Have had a string of Bimmers, plus a 911 and an S4, but still could not believe my pal's M5.) So my quandary is this. I've found an extremely clean 2001 M5, with 70k miles, owned by second owner who is meticulous, retired engineer. Never in a car wash, never seen snow or salt, kept in garage for winters, and so forth. Body and paint are perfect. My mechanic (a BMW expert) did a PPI and raves about it. So far so good. The car is immaculate. All original, no mods, no track, etc.

Question, of course, is the price. The guy wants $25,000 and won't budge. This is about $4,000 over KBB and Edmunds, which show the car worth about $21,000. But maybe the "book value" doesn't apply here? My mechanic says paying a little extra is worth it rather than spending months combing through ads to find something that's maybe a slightly better deal. And my mechanic also says the car is so clean I won't need to do anything to it for a few years. (However, the current owner had it in the shop just a few weeks ago to have the instrument cluster replaced; so I'm not sure I believe it will be as trouble-free as my mechanic suggests.)

What do you guys think? My pal the M5 owner says if anything these cars are going for under book value these days, given the bad economy, etc. etc. He says be patient, wait, look around, you'll find a better deal, 70k is a lot of miles, etc.

But on the other hand, man oh man do I want one of these cars. And this one is sitting right here, 2 miles from my house, calling to me ...

I'm sure many of you can relate to this dilemma. Any advice? Talk me down off the ledge? Or push me over the ledge? Any help appreciated.

LukeM5 · 10th May 2009, 17:51

Welcome.

Don't give in to the temptation! That's just too much for a 2nd owner, '01 with 70k miles.

As a reference point, I purchased mine about two months ago - '03 w/ 43k miles, one owner, all records and always maintained at BMW dealership, excellent condition, still under CPO warranty until late this year, all the specs I wanted.

I paid about $1k over blue book, and I'm pretty sure I overpaid...

One more thought, you can't bank on nothing going wrong with the car, even if it is in fine condition. A good PPI is a great start, but not reason enough to pay $4k over blue book.

Sounds to me like you've got an owner who isn't that keen on selling.

La-Sean · 10th May 2009, 19:44

That seller is either just fishing or out of touch with the market

. PM me and I'll send you a link to an 01 with less than 1/2 those miles and in fantastic condition and every option you can imagine for more than a grand less than this seller you've found but he's not local. stuck up sellers like this guy really piss me off!!!!

chowdah · 10th May 2009, 20:26

Welcome to the Board. You could wait the guy out, tell him your fair offer, and let him test the market at his asking price. We don't know what qualities are important to you (price, age, miles, color, timing, proximity, etc). Listen to your friend, and get a feel for comparable sales here / autotrader / etc.

Michael_s · 10th May 2009, 21:30

Like the others have said, 25K for a 2001 is high. Personally I don't look for the "lowest" price. You should consider the following:

1) When were the consumable items replaced, if they were (bushings, MAFS, intake/exhaust sensors, exhaust brackets, suspension components, clutch, tires, brakes, etc.)? If the majority of these items are new, that could be worth extra to a new owner. If they are all about to go and need to be replaced, this needs to be considered.

2) Are there any modifications that increase/decrease the value to you? Bluetooth, exhaust, intake, short shift, tints, software, suspension, etc. Mods don't have much value in the market, but may help when you are considering a purchase.

On the surface, 25K is too much.....

Hope this helps.

PS - service records are a must along with a carfax.

KevinM · 10th May 2009, 21:40

The prices of these cars have become so ridiculously low that I personally would find it difficult to turn down a local pristine, enthusiast owned car for a $4000 difference. But everyone has a different price set point. Market value is ultimately what YOU and the SELLER decide it is. The more you want it and the more you value the attributes (condition, local, end of your search/have it now), the higher the market value is for YOU. Paying over blue book value does not necessarily make this a bad value for you.

There is much about the car that you describe that is becoming more rare as these cars age. Can you find a better deal somewhere? Without a doubt.

BTW, the cluster replacement/pixel failure is a known issue for all E39s and does not reflect poorly on the car. BMW basically replaced this for free even out of warranty for original owners/repeat customers. As this deal is becoming harder to get from BMW was 3rd/4th owners purchase these cars, it is good for you (or whomever buys it) that it is being taken care of before the sale.

GL

Siooma · 10th May 2009, 21:57

Thanks. I think you're right - the seller is kind of ambivalent, loves the car, etc.

s62fan · 10th May 2009, 22:06

I have a 2001 black on black with all the options with only 61000 miles that I would let go for $21,000. I am the second owner for the last 6 years and have kept the car in a garage the whole time. I recently put a new clutch and new brakes all around. I've been a board member for years as well.
I have a new 535 so I don't use the M5 much anymore. Check my profile.

Eric

Hdhntr23 · 10th May 2009, 22:44

As far as the instrument cluster being replaced, Im assuming that is just due to the pixels dropping out. He had that done (assuming Im right) to try to make it easier to sell. Dont let that shade your judgement so you think there are other things wrong with it. VERY common for those pixels to drop out.