Do people actually purchase new BMW's?

Originally Posted by Dave9
^ You are missing that even vehicles that are supposedly reliable, still can have higher maintenance and repair costs.

Is an X1 an unprecedented increase in reliability for BMW? If not, then it is reasonable to look at existing BMW repair data. If so, it will take more years to accumulate this data. The F48 is only going on 5 years old now right? So the more reliable years are passing and then next 5 will paint a better picture.


I personally don't know much about BMW. Volvo, Ford and VW, I know pretty well....

Isn't 5 years on a platform near end-of-life, though? I thought most of these ran on 5-6 year cycles?



Originally Posted by Dave9
If you want to insist it will be equal to maintain and repair, that is your gamble to make. Historically it has been untrue, BMW's tend to cost over twice as much. This may not matter, a more luxurious vehicle should be worth more money to its owner, but again it's new vs used and seemingly maxing out a budget. It is not an apples and oranges comparison to me, only based on an assumption about cost that does not seem valid.

BMWs are notorious for high repair costs, like, as expensive as it gets before you drift into exotic sports cars.


Well, a couple of things:

-I'm not insisting it will be equal in cost to maintain. I honestly don't know, part of the reason I'm asking. That said, there are a few things that come to mind. 1) as cars become more complex, are the Asian cars really that much more reliable? I know the Mazda is NA, which has some advantages. That said, having owned a Volvo 740, I don't really consider turbos to be "new tech". 2) the independent sources of data like Consumer Reports (which of course most on here think is a grand conspiracy) seem to put the X1 equal to or above similar Asian brand comparos (Forester, CX-5). And perusing the various car-specific forums, I don't see many complaints on this platform.

-budget wise, the person buying it could afford a lot more, this is just want they want to spend on a car. Obviously, total cost of ownership is a factor vs. initial purchase price, but I just haven't seen anything to suggest it will be that high?
-when I look at things like radiators, alternators, starters (things that may need replaced in 10 years), I don't see a massive difference in pricing on these parts.

Full disclosure, I'm slightly distrustful of Mazda's reliability, just based on one friend's car that I always seemed to be working on. It was a '12 Mazda 3, and there always seemed to be something going on with it. That said, I know it's just a single anecdote...
 
Originally Posted by Snagglefoot

So, when you see a new BMW "owner"with his new wheels, there is a very good chance he lives in his mom's basement.



Work hard, and maybe you too can have jealous people hoping you live in mom's basement...
 
Originally Posted by Snagglefoot
From Car Intelligence. Most new BMW's are leased and it's the brand that Is most highly leased in the USA.

For BMW.

Leased 77%
Payments 10%
Cash 13%

So, when you see a new BMW "owner"with his new wheels, there is a very good chance he lives in his mom's basement.


Or in a house 4 times bigger then your. Not everyone wants to drive a buick century with 200k miles on it.
 
Originally Posted by SEBZX79
Originally Posted by Snagglefoot
From Car Intelligence. Most new BMW's are leased and it's the brand that Is most highly leased in the USA.

For BMW.

Leased 77%
Payments 10%
Cash 13%

So, when you see a new BMW "owner"with his new wheels, there is a very good chance he lives in his mom's basement.


Or in a house 4 times bigger then your. Not everyone wants to drive a buick century with 200k miles on it.


Show me a Buick Century with 200K miles on it and I'll show you a kosher ham.
 
Originally Posted by The_Nuke
Originally Posted by SEBZX79
Originally Posted by Snagglefoot
From Car Intelligence. Most new BMW's are leased and it's the brand that Is most highly leased in the USA.

For BMW.

Leased 77%
Payments 10%
Cash 13%

So, when you see a new BMW "owner"with his new wheels, there is a very good chance he lives in his mom's basement.


Or in a house 4 times bigger then your. Not everyone wants to drive a buick century with 200k miles on it.


Show me a Buick Century with 200K miles on it and I'll show you a kosher ham.


Here you go. 2003 Buick Century with 210k for about 2k. Now about that ham...

https://www.auditysonscorner.com/used/Buick/2003-Buick-Century-5c547f5a0a0e0a6b4da79abd7527d0b4.htm
 
Originally Posted by maxdustington
Originally Posted by Dave9
If anything, I'd expect someone living in mom's basement, to be driving mom's old car and she's driving the new one. You have to have decent credit and/or fair amount of money down to lease a high value vehicle. I don't see the person living in someone's basement as being the typical customer... more like someone with disposable income and a mental block about maintaining a vehicle long-term and possibly that is the right attitude with something more complex and expensive to repair.
Millennials. Live at home for free or cheap and drive a new BMW or pay astronomical rents to foreign landlords if you live in a large Canadian city.

You would have to be a fool or a euro mechanic to own a BMW or MB out of warranty. My uncle leased a newer (2012?) A6 and bought it after lease. It needed a new trans within a year or two but that was covered by warranty.


Well I'm not a Euro mechanic so that means I'm a fool because I own two MB's and they were both out of warranty. No real issues with them though, biggest problem has been flat tires and bent/cracked rims. But that's a common problem with low profile tires and 18/17 inch rims. Most people posting in the forums for help are also typically out of warranty. The real fool might be the person who thinks you need a warranty. Things happen, but there's a probability curve and it doesn't happen to everyone. There are people paying 8k or more to the dealer for repairs to their Toyota or Honda too.

As for the reason for BMW leases, it the same reason they're popular with other manufacturer. The monthly lease amount is artificially low. If you actually walk into a dealership and do the math, it probably works out cheaper to lease than to buy. Same with MB, many people turn their cars in at the end of the lease to the dealer and buy it back for 5k less. That's because the residual doesn't line up with true market value. Just one way for the car makers to sell cars without cutting prices, have a high residual.
 
I don't know if "people" do that, but I can't wait to be rich enough to buy a NEW M5 Competition!
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Originally Posted by Wolf359
As for the reason for BMW leases, it the same reason they're popular with other manufacturer. The monthly lease amount is artificially low. If you actually walk into a dealership and do the math, it probably works out cheaper to lease than to buy. Same with MB, many people turn their cars in at the end of the lease to the dealer and buy it back for 5k less. That's because the residual doesn't line up with true market value. Just one way for the car makers to sell cars without cutting prices, have a high residual.

And you can only do this for a short time, before those high residual values BITE your bottom line. One of the reasons that many car makers now offer 7 and 8 year loans is because the payments are now comparable to a 3 or 4 year lease, but the OWNER now carries the resale value risk.

Oh, your way upside down on the loan ... well lets just roll that negative equity into a new loan. And, you can only do that a few times, before things get real ugly, financially.
 
Like a normal buyer he should test drive both and compare but it sounds like he has made his choice already.

Good luck with that.
 
Originally Posted by geeman789
Originally Posted by Wolf359
As for the reason for BMW leases, it the same reason they're popular with other manufacturer. The monthly lease amount is artificially low. If you actually walk into a dealership and do the math, it probably works out cheaper to lease than to buy. Same with MB, many people turn their cars in at the end of the lease to the dealer and buy it back for 5k less. That's because the residual doesn't line up with true market value. Just one way for the car makers to sell cars without cutting prices, have a high residual.

And you can only do this for a short time, before those high residual values BITE your bottom line. One of the reasons that many car makers now offer 7 and 8 year loans is because the payments are now comparable to a 3 or 4 year lease, but the OWNER now carries the resale value risk.

Oh, your way upside down on the loan ... well lets just roll that negative equity into a new loan. And, you can only do that a few times, before things get real ugly, financially.


BMW has had cheap (for the type of car) lease for years...and I mean YEARS.
 
Originally Posted by Mr Nice
Affluent folks like to get a new BMW or Benz every few years.

They have no intentions to keep a car past the warranty.

My neighbors are what I consider decently affluent. I don't believe they've upgraded their AMG 43 or the BMW X3 since I've lived here (@2 years), and doubt they bought both the day I moved in.
 
And ...

Now the CEO is stepping down. FRANKFURT, Germany — BMW CEO Harald Krueger is stepping down in the wake of the luxury automaker's weakest earnings performance in a decade.
 
I just checked the BMW residual value for a 2020 X5 ... 40% of MSRP for a 4 year lease.

Seems BMW knows the resale value of a current BMW sucks too.
 
The used one OP linked up is a good value IMO. We considered a used X1 when shopping.

We decided the Top of the line trim Korean SUV was almost as nice while being cheaper to maintain.

I do like the X1 overall. Seems like a nice vehicle and reliability reports are actually decent. If We were shopping again it would appear on our list.
 
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Originally Posted by 02SE

Work hard, and maybe you too can have jealous people hoping you live in mom's basement...


Precisely!
 
I only bought two BMWs new, and I have kept one of them for over 24 years. That said, most or my recent BMW purchases have been 1-3 year old cars coming off short term leases- and I usually keep them for 5-10 years. I may yet order an M240i or M2C, however.
 
Work with folks that buy the first one … then start leasing number two on … they wind up loving the drive and image … but not the PM or outrageous repair costs …
 
Originally Posted by MCompact
Originally Posted by 02SE

Work hard, and maybe you too can have jealous people hoping you live in mom's basement...


Precisely!

Exactly. 3rd ed, lol!
 
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