Do people actually purchase new BMW's?

[MCompact]

Yes, poor people buy new BMWs. Rich people buy used ones.

I've bought two new; both were 318tis, so they were not exactly budget busters- and I still have one of them.
That said, in November 2018 I bought a CPO 30k mile 2015 X1 xDrive28i M Sport with every option but Harman-Kardon audio for under $22K.
Depreciation is my friend.

 

[PandaBear]

My understanding is the luxury brands (especially the Europeans) don't like to lower price, so they give deals on leases instead as a main attraction.

Once the lease is over then it get to certification process and then becomes CPO with extended warranty.

 

[BMW Dom]

I would not buy a new one unless I strike the lottery. Depreciation is my friend like @MCompact said

 

[Wolf359]

My understanding is the luxury brands (especially the Europeans) don't like to lower price, so they give deals on leases instead as a main attraction.

Once the lease is over then it get to certification process and then becomes CPO with extended warranty.

I've heard of cases where it's cheaper to turn in a lease vehicle to the dealer and then buy it right back from the dealer and save yourself 5k than it is to just pay the residual value. Basically they're just hoping that it's cheaper to get into a new vehicle as buying it wouldn't make sense. Plus because they set the residual so high, you end up with a lower lease payment which is how they subsidize the cost of the lease. So on some American cars, depreciation is so high and they don't do great lease deals, it's only a few hundred more to get into a luxury car just due to the residual games that manufacturers may or may not play.

 

[OVERKILL]

My understanding is the luxury brands (especially the Europeans) don't like to lower price, so they give deals on leases instead as a main attraction.

Once the lease is over then it get to certification process and then becomes CPO with extended warranty.

BMW is putting all kinds of cash on the table right now, FWIW. Lots of discounts on the X5, at least in Canada. I was kind of surprised.

 

[loneryder]

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.


holy smokes...

So, that does make sense based on what I'm seeing in the resale market. I have to say though, I think it makes for some good deals in the off-lease market, particularly since BMW seems to cover the maintenance, and most of the ones I've looked at have well-documented maintenance histories.

One thing though: I wouldn't assume that everyone who leases is living in his mom's basement. I know several folks who could easy buy whatever car they want, cash--and they choose to lease. And for some folks, typically those who want a new car every 2 to 3 years and purchase euro brands that depreciate like crazy, it can make sense.

Leasing can be a tax deduction.

 

[Quattro Pete]

BMW is putting all kinds of cash on the table right now, FWIW. Lots of discounts on the X5, at least in Canada. I was kind of surprised.

Around here dealers have no X5 inventory at all.

 

[PandaBear]

I've heard of cases where it's cheaper to turn in a lease vehicle to the dealer and then buy it right back from the dealer and save yourself 5k than it is to just pay the residual value. Basically they're just hoping that it's cheaper to get into a new vehicle as buying it wouldn't make sense. Plus because they set the residual so high, you end up with a lower lease payment which is how they subsidize the cost of the lease. So on some American cars, depreciation is so high and they don't do great lease deals, it's only a few hundred more to get into a luxury car just due to the residual games that manufacturers may or may not play.

This happen to the early EV like Nissan Leaf and Chevy Spark from my understanding. They use the traditional depreciation and assume 60 or so % residue after 3 years and end up being up side down on the lease at the end. A lot of leaf owners end up returning despite liking the car, and buy "the same car" back or lease another one.

Yes, another iffy accounting trick. Sometimes they are used to offload the dumping charge in imported cars to get around anti-dumping. Their financing arm eat the cost and makes the manufacturing arm looks innocent.

 

[Al]

I have an '18 Forester XT. And if something were to happen to it the only alternative is the BMW X3. I would look for a demo type. But yea..I would buy new.

 

[meep]

Well, I didn't buy it brand-new but I did buy a 2016 X3 x28d fresh off lease, so.... close enough?

That’s got to be a really neat power train; I looked hard at a used 328d and chickened out. How do you like it?

 

[andreigbs]

That’s got to be a really neat power train; I looked hard at a used 328d and chickened out. How do you like it?

It's been wonderful so far, and we've put on about 25k miles on it since Jan '20. I've heard some of the 3er sedans and wagons end up with transfer case issues (the rubber guibo failing) and there's now a recall for it. There's also a recall for EGR cooler issues and more recently the fuel pump.

So far, the X3 version hasn't given me any problems. The ZF8 speed is perfectly suited to both spirited driving as well as long haul economy and quiet in the cabin. The balance of the chassis, for an SUV, is unbeatable and the fuel economy is hovering around 34-36 depending on how heavy my right foot is. We just completed a 700 mile round trip and averaged 34.8 mpgs with an average speed of 78 mph... That's excellent. If only I could slow down.

The only service items have been a set of tires, front brakes, a filter pack (air, fuel, cabin) and 3 oil changes so far. And it truly is a blast to drive, mostly because a good friend of mine has tweaked the ECU for me, resulting in 250hp and 450 ft-lbs torque. It is intoxicating.

 

[meep]

Wonderful response, thank you. I’m glad to hear they did so well with it!