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Go or NoGo?


What do you guys think about buying high-end vehicles like M5 with extended warranties from Carmax. Any experiences or thoughts you could share?

Thanks!
 

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It's really up to you. If you do the proper research and get a PPI a M5 from Carmax could buy a great car. It could also be a problem car if you don't pull the service records and have the car inspected by a trusted M5 mechanic.
 

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Thanks!
Their prices are about 4K above market so the one thing that makes them attractive to me right now is their extended warranty.. :confused:
 

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Thanks!
Their prices are about 4K above market so the one thing that makes them attractive to me right now is their extended warranty.. :confused:
Make sure you ask the right questions and read the warranty as well as check reviews of the company online. All extended warratied are not the same and you wany a warranty that covers everything except what is excluded; then carefully read and understand the exclusions. Also, you want to confirm how the warranty company will treat SMG.
 

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Go or NoGo?


What do you guys think about buying high-end vehicles like M5 with extended warranties from Carmax. Any experiences or thoughts you could share?

Thanks!
Hit or miss. My experience when I was initially looking for my 550i sport was that Carmax had its fair share of repaired cars. They had a great inventory of Infinities, 350 Z's, BMW's, etc - but on the sunny day that I went, almost half had either bumper or body parts resprayed. That doesn't mean a nice M5 is impossible to find there - just do your extra due diligence like service records, PPI, paint depth check, # of owners. Remember, places like that get their hands on those cars because the franchised dealers passed on them at auction for some reason or another - rough body, high mileage, multiple owners, etc. Sometimes you'll get a relatively clean trade, but for me, buying privately from an enthusiast or from a BMW dealer is my preference.

RE: your warranty, MAKE SURE IT INCLUDES THE SMG PUMP. It isn't an 'internally lubricated part' (language you'll find on all contracts, which could give them an out if it goes bad) since it sits just outside the transmission, but it is part of the tranny and should be part of the warranty.
 

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I think CarMax is way overpriced and the quality of the used cars are poor... lots of dents and dings fixed and many of the cars are dirty and missing little interior bits. Which warranty company they use makes a huge difference with the M5. You MUST get a policy that covers the SMG or it is worthless.


I would suggest you contact some BMW dealers and/or wholesalers locally to purchase the best M5 you can find with the lowest miles you can afford then go to a BMW dealership and purchase an EasyCare extended warranty (there are a few others you can search for here on this site that also cover SMG and EDC, etc.).


I shopped for my wife's MB R500 at CarMax and they were all in poor shape and 5-10K over market with more miles on them. They are really targeting folks that are not car people and don't want to haggle the price, etc. Found a great R500 with every option they come with for 10K less than CarMax was asking with 21K. The R at CarMax had 43K miles and it was an R350 with few options. I even checked all the CarMax SE locations that they could transfer the car for me to my local dealer and none of them we in good shape or great deals.

I then took the R500 to the local MB dealer, had it serviced and bought an extended warranty and am very happy with the auto we purchased. It even had the dual DVD players in the headrests so my kids are happy as well.


I think CarMax is great if you have narrowed down your car selection to 3-4 cars and want to see them all and/or drive them without going all over town but once the choice it made there are better places to purchase IMHO.
 

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Thanks guys for emphasizing the SMG coverage. I did ask about it when I had an M5 on hold and was given the it’s-an-automatic-so-should-be-covered line and had since dropped off my radar screen. I will definitely make sure that is on must check list.

I am starting to lean toward a BMW Dealer for this transaction. I engaged my local dealer on this. I will also inquire about buying an extended warranty from them if I found the car in non BMW (is this possible?)


Extended warranty looks like a gigantic hurdle on my way. I hate insurance futures.
 

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Thanks guys for emphasizing the SMG coverage. I did ask about it when I had an M5 on hold and was given the it’s-an-automatic-so-should-be-covered line and had since dropped off my radar screen. I will definitely make sure that is on must check list.

I am starting to lean toward a BMW Dealer for this transaction. I engaged my local dealer on this. I will also inquire about buying an extended warranty from them if I found the car in non BMW (is this possible?)


Extended warranty looks like a gigantic hurdle on my way. I hate insurance futures.
Yep - it sure is like buying a future...and betting that you're car will have more $ in repairs than what you paid for the extended service policy. But the question comes down to "how to do you put a value on piece of mind"? Ahh, aren't gray areas great?
 

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Thanks guys for emphasizing the SMG coverage. I did ask about it when I had an M5 on hold and was given the it’s-an-automatic-so-should-be-covered line and had since dropped off my radar screen. I will definitely make sure that is on must check list.

I am starting to lean toward a BMW Dealer for this transaction. I engaged my local dealer on this. I will also inquire about buying an extended warranty from them if I found the car in non BMW (is this possible?)


Extended warranty looks like a gigantic hurdle on my way. I hate insurance futures.

Yes! You can purchase an M5 from a non-BMW dealership and purchase an extended warranty from a BMW dealership that covers SMG, EDC, etc. after they perform an inspection. This is exactly what I did. Bought mine from a local wholesale dealer and bought the warranty from the local BMW dealership. Worked out great for me and saved about $5K on the whole deal for an M5 with less miles, more options and better shape than those at the BMW dealerships and retail dealers around town. If you are willing to pay a bit more and save some time do the deal at a BWM dealership in one shot if they have the car you want. You may also need to purchase from a BMW dealer if you need to finance the cost of the extended warranty (about $3000 or a 2006) in your monthly payment. Not an issue if you are a cahs buyer or have your own financing.
 

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Discussion Starter #10
Yes! You can purchase an M5 from a non-BMW dealership and purchase an extended warranty from a BMW dealership that covers SMG, EDC, etc. after they perform an inspection.
That is good news, Thanks! I assume I can get a quote during the PPI.
 

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@ Copper,
I noticed that you purchased your M5 wholesale. This is an option that I have seriously considered. First of all, I am an officer in the military and am 24 so I have been saving only for a couple years and am contemplating pulling the trigger on my dream car now, as it will be difficult later down the road with deployments and potential family. I say that because will be dumping my short term savings into this car and like anyone would like to get the most for least.
I have found a guy in Houston Tx that travels around and purchases high end cars wholesale per his costumers request. My biggest hesitation is quality assurance. I would be hands off for a large part of the transaction and find it hard to take his word on everything. What are some pointers from your experience and lessons learned that I should look out for, and is this a legitimate way to acquire a vehicle like this? I feel like the cars are wholesale for a reason. Also getting an extended warranty is something I wouldn't do without, so what if i buy wholesale and take it to a dealer...could they deny it warranty for quality reasons, and how might I guarantee that they will warranty it before the wholesale purchase. Anyway lots of questions as you probably had the same...i greatly appreciate any of your time you could give to assist me in this decision. Thank you very much.
 

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I have found a guy in Houston Tx that travels around and purchases high end cars wholesale per his costumers request. My biggest hesitation is quality assurance.
If you dont know this guy personally- ask for references and check those references- get atleast 3. Protect your savings with data & facts.

I feel like the cars are wholesale for a reason.
At some point, a large portion of cars hit the wholesale market. Its not an indication of their quality by being sold via wholesale.

Also getting an extended warranty is something I wouldn't do without, so what if i buy wholesale and take it to a dealer...could they deny it warranty for quality reasons, and how might I guarantee that they will warranty it before the wholesale purchase.
If your car is under original warranty or an extended warranty- you will not be denied a claim because it was sold in the wholesale market. The key is to purchase an extended warranty from a reputable firm (search this board for experiences) while the car is still under the original warranty. In doing so, you'll likely save 3-6K.

Hope this helps.
 

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I haven't had any problem with the car that would be covered under this warranty for 3 years and 64k. mi.
 

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Hiring a buyer is certainly a legitimate way to buy a car. It's what I do for a living; buy cars on a custom-order basis for my clients, and provide an extended warranty if needed. It's totally dependent on the buyer, though, so you have to investigate them carefully. How do they inspect the car pre-purchase? Can they provide tons of independent references? What recourse do they have if there is a problem with the car they buy? What recourse do YOU have if they buy a car and it's not what you requested in some respect?

How much do they charge? The biggest thing I see is people that are buyers, not specific to any make/model/class of car, buying semi-exotics and highline cars. I get lots of complaints after-the-fact from someone that hired a buyer that buys $5K cars at auction, paid a $500 fee because 'it was a great deal', and then wound up with a car that had, as its primary inspection, a Carfax! Proceed with caution.

If you'd like to know more about how I work, email me at [email protected]. I've delivered M-cars, MB AMG cars, Audi S-cars, Jaguar R-cars, Porsche, Ferrari, and more. I'm a high-end buyer, so I know how to look at a high-end car as its potential owner will, and then some.

Bruce
Becks Imports LLC
856-912-2600
 
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