Would I save money trading in BMW for cheaper new car?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
countofmc
Posts: 512
Joined: Tue Dec 11, 2012 11:03 am

Would I save money trading in BMW for cheaper new car?

Post by countofmc »

I currently drive a 2008 BMW 328i with 25,000 miles (don't drive much). I purchased this car new, and it was one of those "bucket list" type things, I've always wanted a BMW ever since I was a kid.

The warranty/ free maintenance period just ran out, so I am looking at some hefty maintenance bills going forwards. New tires and brakes are on the near horizon. That being said, the 328i IS the cheapest BMW you can own, and I heard as far as BMWs go it's fairly reliable and not overly expensive to maintain. But I still don't know that as I have not paid a dime out of my pocket for repairs/ maintenance yet. Plus I'm not a DIY'er, so I'd have to pay for most repairs/ maintenance (although thankfully there are some good independent BMW shops in the area that should save me some money over the dealer).

I know the standard advice is to drive a car into the ground, but I'm wondering if that would hold for a car like a BMW that would cost a bit to upkeep. IF I get rid of it at this point, I'd be looking to get into a cheaper but NEW car - most like a Honda Civic, Accord, or CR-V.

I don't necessarily mind keeping the BMW, I still enjoy owning and driving it. But if getting a car like a Honda or Nissan would save me quite a bit of money going forwards, I'd entertain that option.

I'd really be interested in hearing from those that may own an aging BMW or Benz or other Euro car, to gauge how much upkeep is costing you.
User avatar
gravlax
Posts: 276
Joined: Thu Aug 21, 2008 2:29 pm
Location: Cole Valley, CA

Re: Would I save money trading in BMW for cheaper new car?

Post by gravlax »

I've got an aging (1998) BMW M3 with 150K miles on it, and upkeep has not been too bad. I am a bit of a DIY guy and change my own oil usually, and NEVER take it to the dealer, but to independent mechanics if I need brakes or anything like that.

There are many factors to consider, including:
-Insurance costs (have you compared new Nissan to older BMW?)
-fuel costs. Check the mileage difference, and also not sure if your 328 requires premium gas, but that is another consideration. All of this depends on how many miles you drive regularly.
-Tires will almost certainly be more on the BMW, due to the larger size

How often were you taking the 328 in when the maintenance was free?
Topic Author
countofmc
Posts: 512
Joined: Tue Dec 11, 2012 11:03 am

Re: Would I save money trading in BMW for cheaper new car?

Post by countofmc »

gravlax wrote:I've got an aging (1998) BMW M3 with 150K miles on it, and upkeep has not been too bad. I am a bit of a DIY guy and change my own oil usually, and NEVER take it to the dealer, but to independent mechanics if I need brakes or anything like that.

There are many factors to consider, including:
-Insurance costs (have you compared new Nissan to older BMW?)
-fuel costs. Check the mileage difference, and also not sure if your 328 requires premium gas, but that is another consideration. All of this depends on how many miles you drive regularly.
-Tires will almost certainly be more on the BMW, due to the larger size

How often were you taking the 328 in when the maintenance was free?
Once a year for the free annual oil changes, and that was it. Didn't need anything outside of that during the 4 year period. Actually I had some kind of weird rattle, but that was fixed under warranty, and that's it.
User avatar
gravlax
Posts: 276
Joined: Thu Aug 21, 2008 2:29 pm
Location: Cole Valley, CA

Re: Would I save money trading in BMW for cheaper new car?

Post by gravlax »

countofmc wrote: Once a year for the free annual oil changes, and that was it. Didn't need anything outside of that during the 4 year period. Actually I had some kind of weird rattle, but that was fixed under warranty, and that's it.
Interesting. I often hear people complaining about the maintenance on BMWs, but mine has been pretty reliable as well. Of course, with the M3, tires and gas tend to be a bit more than they would be with a camry or similar.
MN Finance
Posts: 1926
Joined: Sat Dec 22, 2012 9:46 am

Re: Would I save money trading in BMW for cheaper new car?

Post by MN Finance »

I've never seen someone buy a BMW because of the economic benefit over another option, so it doesn't seem like money should drive this decision (like some things in life)
User avatar
G12
Posts: 1598
Joined: Mon Apr 16, 2007 2:35 pm

Re: Would I save money trading in BMW for cheaper new car?

Post by G12 »

In reality, like my wife's new turbo Beetle, the "free" BMW maintenance is built into the price of the car. She wanted me to trade in my 2002 SUV for something new and I was like, nah, I only drive ~ 5k miles a year and my vehicle runs great. At the end of the day it's what you really want to do. The newly remodeled Civics look pretty decent and cost of ownership should be significantly lower if you keep it long term. Then again, a BMW is fun to drive and your maintenance cost would be pretty reasonable until the car ages and accumulates more miles. My dad has had 3 BMWs, he hasn't had much, if any, issues before 75k miles. He loves his current 328i BMW hard top convertible with the 6 cylinder. I'd probably keep the Bimmer a few more years then make a decision. My wife had really grown tired of driving Maxima sedans for years and enjoys how her new car drives, you might not like the way the new vehicle handles compared to your BMW.
Gill
Posts: 8221
Joined: Sun Mar 04, 2007 7:38 pm
Location: Florida

Re: Would I save money trading in BMW for cheaper new car?

Post by Gill »

Keep it. You're a low mileage driver and have already taken the big depreciation hit. Gas mileage and possibly slighly higher cost of repairs will never offset the cost of going out and buying a new car. Hang onto it for five more years or so and then consider a trade.
Bruce
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
strafe
Posts: 1071
Joined: Sat Mar 03, 2007 11:49 am

Re: Would I save money trading in BMW for cheaper new car?

Post by strafe »

I own an '85 & ''98 Mercedes and have averaged less than $1800 a year for repairs/maintenance for both cars combined over the past 10 years. I change the oil myself, about once a year.

I would keep the BMW. The E90/92 328 is a pretty reliable car. The cost of ownership of your used BMW likely to be very similar to a new Honda/Toyota, and your BMW is a much nicer/safer car. Why pay the same for an inferior vehicle?

Depreciation is the largest cost of car ownership. As a car gets older, its depreciation slows down. At this point, it's probably depreciating less than a new Honda/Toyota. Get your maintenance done at an independent shop and it'll cost a fraction of what the dealer would charge (and well below what sites like Edmunds use to estimate cost of ownership).
stoptothink
Posts: 15368
Joined: Fri Dec 31, 2010 8:53 am

Re: Would I save money trading in BMW for cheaper new car?

Post by stoptothink »

MBMiner wrote:Keep it. You're a low mileage driver and have already taken the big depreciation hit. Gas mileage and possibly slighly higher cost of repairs will never offset the cost of going out and buying a new car. Hang onto it for five more years or so and then consider a trade.
Bruce
This.
User avatar
Watty
Posts: 28860
Joined: Wed Oct 10, 2007 3:55 pm

Re: Would I save money trading in BMW for cheaper new car?

Post by Watty »

IF I get rid of it at this point, I'd be looking to get into a cheaper but NEW car - most like a Honda Civic, Accord, or CR-V.
A lot depends on how long you will keep the car, I normally keep mine about ten years so that would be a reasonable starting point.

With the way you are driving any of these Hondas will likely last more than ten years with very few problems.

It would be very optimistic to think that your BMW will get to be 15 years old without needing a few significant repairs. Even if it goes well your BMW will get to the point where the rubber things like hoses and belts will be due to be replaced even if you don't need to do anything else.

Depending on the model of the car you get a newer car might have better safety equipment so that would be good to look into.

A high end Accord can cost nearly double what a Civic costs to it really depends on the car you would be getting. Even without running the numbers I am pretty sure that getting a mid-priced Civic and keeping it for ten years would cost less since you could likely buy the new Civic for about what you could sell the BMW for. Buying a $30K Accord would likely cost more over the long run.
TRC
Posts: 1969
Joined: Sat Dec 20, 2008 4:38 pm

Re: Would I save money trading in BMW for cheaper new car?

Post by TRC »

I had a 2008 BMW 335XI. At about 30K miles, I sold it private sale and bought an Acura TL SH AWD. I plan to keep this one well past 100K miles. I sold it becuase it was too small to comfortably fit 4 adults, the repair cost freaked me out past 50K miles, and BMWs aren't known to be "high mileage" cars.

Edit - a friend of mine just bought the 2013 Honda Accord Sport. Very nice car. Worth looking at if you want something more practical.
User avatar
bUU
Posts: 608
Joined: Sun Nov 25, 2012 10:41 am

Re: Would I save money trading in BMW for cheaper new car?

Post by bUU »

I just traded my 2007 328xi in for a new Ford Fusion, and I couldn't be happier. I had a year of paying for repairs and service myself, and I didn't like how much more expensive BMW service was over that of our other cars. I also didn't like how much more I was spending on gasoline.

I don't have any personal capability to address car troubles, so holding onto an aging car is always going to be a bad move in my book - if you're handy with a wrench (or whatever) then your analysis might work out differently.
German Expat
Moderator
Posts: 961
Joined: Fri Oct 16, 2009 10:49 pm

Re: Would I save money trading in BMW for cheaper new car?

Post by German Expat »

Most high mileage BMW drivers I know use independent mechanics and seem to be quite happy with them. My wife likes new cars so we lease hers and also enjoy the trip to Europe for the European Delivery. Only time also to run the car to its governor on the Autobahn.
yosef
Posts: 355
Joined: Tue May 24, 2011 2:10 pm

Re: Would I save money trading in BMW for cheaper new car?

Post by yosef »

I love Bimmers but the cost of maintenance has really scared me away from it as well as other more modest European cars like VWs. I know a couple of BMW owners and it sounds like you'll pay at least as much for an independent BMW mechanic as you will for service from the dealer for a Japanese or domestic car. That said, I'd probably stick with the car if you've had good luck with it. If things start heading south you can trade it later.
Post Reply