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First and foremost, let me say that although this is my first post, I have been lurking here for a few weeks while trying to decide if an E39 is right for me (my decision should be self evident by this post), and I've been amazed by not only the wealth of information available on this board but also the sense of community. At the risk of sounding melodramatic, I can tell that for many of you the M5 is not just a car - it's a passion, and while I can rationalize my decision to buy an M5 based on it being roomier, less expensive, more civil, more reliable and safer than the convertible that I had planned on buying, the truth is that my decision is based on something much more primal. I guess that's why you guys call it the beast.

As has been discussed on this and other M5 boards, the market here in Los Angeles seems to be more expensive than elsewhere. After looking at a few cars for which the sellers were asking way too much based on what I've seen here, I contacted an auction dealer who will help me with auction purchase for a $1000 fee. The first auction that I'll be able to attend is in one month. Last night, however, I looked at a mint '02 CPO with 27K miles, carbon black w/black luxury lthr, PDC and enhanced/premium audio, for which the dealer is asking just under $54K. If I could get it for $50K, would it be a good deal, and would it be worth it to forego the auction route? I've read that CPO cars are less common at auction, and while I realize that the CPO inspection is not very meaningful, the warranty is important to me.

Also, never having attended or purchased a car at an auction, what can I expect in terms of the cars and the process? Is it purely caveat emptor, or is there a way to have the car inspected by an independant dealer?

Thanks in advance.
 

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Welcome! You are right, this is a great board.

I would say a CPO 2002 with < 30K miles would be a great deal for $50K...if it's the exact color/spec you want, it may even be worth more to you.

Don't know much about auctions. I would try to find out the name of the previous owner of any car you are serious about and try to contact him/her.

Good luck!
 

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Wanna M5-

I think you are going about it the right way. As the Board will tell you, buying a CPO car through a BMW dealer with an extended warranty is the popular way to go. I did mine a little differently. I have a buddy whose family owns a couple of dealerships. I had him buy it through one of the dealerships-no $1000 "mark-up") and added an extended warranty through Universal Underwriters, which I think is owned by Zurich Life. Here is a link. http://www.universalunderwriters.com/ Saved the $500-$700 dollar commission on the extended warranty as well. I am sure if you look around your circle of influences, somebody is well acquainted with a dealer-new or used-that can help you out and save you 5-6 thousand bucks. Shipping covered, even cross country should be no more than $800 give or take. Someone on the Board should also be able to print out the Auctions as well. Also, don't just look at auctions out there, there are a LOT of auctions going on. Dallas, Atlanta, Kansas City, etc. You might even check out the BMWNA Financial auctions. And you can have someone look at the auction. Hope this helps.

KCD


WannaM5 said:
First and foremost, let me say that although this is my first post, I have been lurking here for a few weeks while trying to decide if an E39 is right for me (my decision should be self evident by this post), and I've been amazed by not only the wealth of information available on this board but also the sense of community. At the risk of sounding melodramatic, I can tell that for many of you the M5 is not just a car - it's a passion, and while I can rationalize my decision to buy an M5 based on it being roomier, less expensive, more civil, more reliable and safer than the convertible that I had planned on buying, the truth is that my decision is based on something much more primal. I guess that's why you guys call it the beast.

As has been discussed on this and other M5 boards, the market here in Los Angeles seems to be more expensive than elsewhere. After looking at a few cars for which the sellers were asking way too much based on what I've seen here, I contacted an auction dealer who will help me with auction purchase for a $1000 fee. The first auction that I'll be able to attend is in one month. Last night, however, I looked at a mint '02 CPO with 27K miles, carbon black w/black luxury lthr, PDC and enhanced/premium audio, for which the dealer is asking just under $54K. If I could get it for $50K, would it be a good deal, and would it be worth it to forego the auction route? I've read that CPO cars are less common at auction, and while I realize that the CPO inspection is not very meaningful, the warranty is important to me.

Also, never having attended or purchased a car at an auction, what can I expect in terms of the cars and the process? Is it purely caveat emptor, or is there a way to have the car inspected by an independant dealer?

Thanks in advance.
 

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First, nice intro...

Second, Hmm, sounds too good to be true. You need to have an INDEPENDENT third party look at that car. Is it a BMW dealer??? If not, be more suspect. BMW will wholesale cars with bodywork out to others. Find the original owner and chat with them. Pay the money for carfax (but DO NOT trust it entirely), have a (the?) BMW dealer pull a complete service history based on the VIN...

I did the cpo thing a bit differently- look back to oct/nov for more info in my posts- I found a private seller then had a BMW dealer 'broker' the deal, adding the cpo to it for cheap.

Careful with auctions- I know of two cars with accident repairs that got turned over from dealerships to the auctions... you can get good deals, but you need to know what to look for.

A
 

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I don't think a car can be purchased from auction as a CPO vehicle. The car, of course, will come with the remainder of the factory 4 yr/ 50k. You will have to purchase a CPO warranty for a couple thousand dollars after the fact. That along with the $1000 auction fee, it dosen't seem like the auction will be saving you any money!

It is imperative you have the car inspected by a neutral third party, I'm sure as you have read some of these threads, do not trust the dealership inspections

Good Luck and enjoy the M5 ride in advance!:wroom:
 

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WannaM5 said:
First and foremost, let me say that although this is my first post, I have been lurking here for a few weeks while trying to decide if an E39 is right for me (my decision should be self evident by this post), and I've been amazed by not only the wealth of information available on this board but also the sense of community. At the risk of sounding melodramatic, I can tell that for many of you the M5 is not just a car - it's a passion, and while I can rationalize my decision to buy an M5 based on it being roomier, less expensive, more civil, more reliable and safer than the convertible that I had planned on buying, the truth is that my decision is based on something much more primal. I guess that's why you guys call it the beast.

As has been discussed on this and other M5 boards, the market here in Los Angeles seems to be more expensive than elsewhere. After looking at a few cars for which the sellers were asking way too much based on what I've seen here, I contacted an auction dealer who will help me with auction purchase for a $1000 fee. The first auction that I'll be able to attend is in one month. Last night, however, I looked at a mint '02 CPO with 27K miles, carbon black w/black luxury lthr, PDC and enhanced/premium audio, for which the dealer is asking just under $54K. If I could get it for $50K, would it be a good deal, and would it be worth it to forego the auction route? I've read that CPO cars are less common at auction, and while I realize that the CPO inspection is not very meaningful, the warranty is important to me.

Also, never having attended or purchased a car at an auction, what can I expect in terms of the cars and the process? Is it purely caveat emptor, or is there a way to have the car inspected by an independant dealer?

Thanks in advance.
 

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I am selling my 2000, Carbon Black Nav. Motor just re-built by BMW, 69,000 miles. Great condition, $36,000.alot more details, 20 miles West of Philadelphia.Any interest, my email [email protected], Clancy
 

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Welcome aboard :byee55amg

Drive an M5 and you'll see just how good it is! You'll never go back to your Audi Allroad :3:
 

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Discussion Starter #10
Thanks for the suggestions. It is a BMW dealer and, according to them (dash of salt please), it was a trade-in from two weeks ago that has never been in any accidents. To be fair, however, they haven't said that they would sell it for $50K - they're asking $53,880, but did say that the price was negotiable. I used $50K because that's what I've been considering offering.


ard said:
First, nice intro...

Second, Hmm, sounds too good to be true. You need to have an INDEPENDENT third party look at that car. Is it a BMW dealer??? If not, be more suspect. BMW will wholesale cars with bodywork out to others. Find the original owner and chat with them. Pay the money for carfax (but DO NOT trust it entirely), have a (the?) BMW dealer pull a complete service history based on the VIN...

I did the cpo thing a bit differently- look back to oct/nov for more info in my posts- I found a private seller then had a BMW dealer 'broker' the deal, adding the cpo to it for cheap.

Careful with auctions- I know of two cars with accident repairs that got turned over from dealerships to the auctions... you can get good deals, but you need to know what to look for.

A
 

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WannaM5 said:
Thanks for the suggestions. It is a BMW dealer and, according to them (dash of salt please), it was a trade-in from two weeks ago that has never been in any accidents. To be fair, however, they haven't said that they would sell it for $50K - they're asking $53,880, but did say that the price was negotiable. I used $50K because that's what I've been considering offering.
If you bargain hard enough you should be around $50k. I recently purchased a 2000 CPO M5 with 36k miles. Dealership asking price was $44,900, after intense negotiations I walked away with the M5 for $38,900!
 

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Welcome!

E39 is certainly the way to go. I would offer that you certainly should opt for 2001+ on the year model. There are several production mods that were added in those later vice 2000 model options. If you can do it, a 2003 model is the ultimate as it already comes prewired for many of the options you might decide later are important to you. Plus it's always nice to have the DVD nav and Sirius option/ bluetooth available to you. But be warned. The money you save dropping to 2002 could finance those mods as aftermarket and just as good.

Best of luck.
 

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You could purchase a cpo from an auction, but it would have already been cpo'd by a dealer previously, and be back in the system a third time. CPO follows the car from one owner to the next. I would imagine though, if a dealer sent a cpo car to auction(ie they didn't want to resell), there'd be something wrong with it.
Mike

Beamer_usa said:
I don't think a car can be purchased from auction as a CPO vehicle. :
 

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mottati said:
You could purchase a cpo from an auction, but it would have already been cpo'd by a dealer previously, and be back in the system a third time. CPO follows the car from one owner to the next. I would imagine though, if a dealer sent a cpo car to auction(ie they didn't want to resell), there'd be something wrong with it.
Mike
Exactly, if the dealer sends a CPO car to auction, you can bet that car has serious problems. ??????
 

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Well- I am sure you guys know more than I do. What I do know is that if a guy/gal was raped by the dealer on an M5 trade, financed the new car and the market was soft for an M5 in their area, I can easily see throwing the car through auction instead of assuming the risk. Remember, a CPO is simply an insurance policy bought by the dealer, usually for around a thousand bucks, sometimes much less, as a way to attract a new buyer. Also, my understanding of "CPO" type coverage is that it only transfers retail-to-retail, not dealer-to-dealer. And, as any particular dealer/manufacturer may sell a LOT of CPO's, my bet is that an M5 is a loss leader for the insurance company. If you sell 1 M5 policy for every 100 330i policies, guess who comes ahead?. For what it's worth.

Beamer_usa said:
Exactly, if the dealer sends a CPO car to auction, you can bet that car has serious problems. ??????
 

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Discussion Starter #16
UPDATE

Many thanks to everyone for the informative and insightful responses. I ended up making a proposal to the dealer and I'm waiting to hear back. From the sound of it, however, I don't think the dealer is going to accept my proposal.

After making my proposal I came across the following on the BMWUSA CPO listing:

2002 Sterling Grey M5
33,123K
Fold Down Seats; M Audio; PDS
$45,900

Of course I called immediately, but I was told that it sold at that price before it even made it onto their inventory list (which seems odd since it did make it onto BMW's inventory list). Now is it just me, or does that price seem to have been way too low, especially from a dealer (Rusnak)? Or, on the other hand, is it a sign of an increasingly soft market for E39 M5s?

Thanks again to everyone. Assuming my proposal get's turned down, my search will continue.
 

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That sounds pretty cheap to me too, like you i'm used to the california pricing!
One more point on cpo, once the car is cpo's that warranty will cover/follow the car regardless of it's owner, unless a dealer 'removes' the cpo, if the car were totaled or modified.
Mike

WannaM5 said:
UPDATE
2002 Sterling Grey M5
33,123K
Fold Down Seats; M Audio; PDS
$45,900

Of course I called immediately, but I was told that it sold at that price before it even made it onto their inventory list (which seems odd since it did make it onto BMW's inventory list). Now is it just me, or does that price seem to have been way too low, especially from a dealer (Rusnak)? Or, on the other hand, is it a sign of an increasingly soft market for E39 M5s?

Thanks again to everyone. Assuming my proposal get's turned down, my search will continue.
 

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WannaM5 said:
UPDATE

Many thanks to everyone for the informative and insightful responses. I ended up making a proposal to the dealer and I'm waiting to hear back. From the sound of it, however, I don't think the dealer is going to accept my proposal.

After making my proposal I came across the following on the BMWUSA CPO listing:

2002 Sterling Grey M5
33,123K
Fold Down Seats; M Audio; PDS
$45,900

Of course I called immediately, but I was told that it sold at that price before it even made it onto their inventory list (which seems odd since it did make it onto BMW's inventory list). Now is it just me, or does that price seem to have been way too low, especially from a dealer (Rusnak)? Or, on the other hand, is it a sign of an increasingly soft market for E39 M5s?

Thanks again to everyone. Assuming my proposal get's turned down, my search will continue.

That is way cheap. My bet is that that car was not really 'available'. Maybe a private party sale that was cpo'd by the dealer and automatically got placed with BMWNA's list? Or maybe a dealer-family snatched it up at the lease end purchase price???

(Some dealers will also 'purchase' the lease end car, cpo it, then sell it back to the original owner! (This is creatively called a 'lease refinance' by some, and lets their loyal customers get an extended warranty for $1400 instead of $3750...)

If I recall, 45-48 is the lease purchase price on 02s hitting the end of 36month leases...

A
 

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WannaM5:

If I were you I'd get in touch with Bluedog from this board. [email protected]. He has an 03 sterling with 8900 miles. He's an exceptionally good guy from my chats with him. He's the original owner I think and he's brought his price WAY down. You might pay a little more for an '03, but it's WELL worth a few extra bucks for a babied car. Plus, the 03 has the 4 year maintenance AND service warranty...which is nice. And DVD nav., and upgraded software for peripherals. If it's between 48k for an 01 and 60k for an 03...take the 03 and run. You DO NOT WANT to own this car without a full warranty. I think everyone on this board can back me on this one.

And lastly, let me echo the sentiments of my brethren...do not buy a car from a dealer without talking to the prior owner. If you need help finding an owner I can help you track him down.
 

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Discussion Starter #20
paulbondy said:
WannaM5:

If I were you I'd get in touch with Bluedog from this board. [email protected]. He has an 03 sterling with 8900 miles. . .
We've talked via email and he seems like a good guy with a great car. Unfortunately he's still looking for much more than I'm willing to spend. I appreciate the suggestion though.
 
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