Friday, October 28, 2011

BMW - The Saga Continues

So I went to Audi today and actually saw a nice Certified 2008 A4 on the lot so wandered inside to see what the story was.  List price is $27,900, it is the Special (or they call it S) edition which means it has full leather and a few styling additions.  They also have 1.9% financing for 5 years (same as BMW right now) and the same certified used vehicle warranty.

So now I go off on a tangent about certified used vehicles.  Here is how it works…. The luxury brand guys figured out they could make another few thousand bucks off vehicles that come back off lease if they certify them.  This basically means they make sure the brakes and tires are in good shape, fix any broken parts and resell the vehicle for about $8,000 more than the lease end residual from what I can figure. 

For example, the 328xi I was thinking about leasing had a residual after four years of $18,000 and BMW currently has a 2007 (4 year old) 328xi for $29,500.  So someone is making money here…. serious money. 

The upside to buying certified used is that you get a 6 year 160,000 km warranty on the vehicle from its initial service date.  If the factory warranty is all gone you get an extra 2 year 80,000 km warranty.  If you have a warranty job though you have to pay $50 to deter people from getting every little minor thing fixed.  I would just save a few up and bring it in for the $50 fix up.  It’s a good warranty if you plan on keeping the car a couple of years and moving on, which is probably what I would do.

Anyway the Audi looked nice but the back seat was really cramped, I checked a few reviews and they all agreed.  I never drove it but it only has 200 hp and 201 lb/ft of torque…. No BMW, but it was a good comparison shop.

Now about BMW, I checked their certified used and saw they have a 2008 335 xi on the lot, and it’s black, with Dakota leather and premium package for $34,500.   Now as you would have already read, the 328 xi was fun at 230 hp, the 335 has 300 hp and 300 lb/ft of torque…….. 300 HP!  Yes I will be test driving this vehicle and let you know what it is all about.  So basically you pay an extra $5,000 to have 300 hp compared to 230, I consider that a great deal.

On a happier note, when I emailed BMW today to ask about their used vehicle rates, the sales manager replied to me so I email him back about my lease rip off concern:

I will probably drop in the weekend.  I was previously considering leasing new but am leaning towards a certified used now, I see you guys have a few nice ones there to choose from.  I was dealing with Mike Roche but he didn't reply last time I emailed him about the lease program you guys are currently running. 

Maybe you can answer a question I had.  I was reading that you guys had free automatic and $4,000 discount on the 2011 328XI but he was saying the free automatic was included in the $4,000 discount, which is not how it reads or is portrayed in the globe and mail article from a couple of days ago. 

Anyway I am moved on to the certified used and will drop in to see you on the Saturday if you are free.”

And he was nice enough to email me back:

I apologize for the breakdown of communication that is not acceptable.

Totally acceptable response and I am back to being a BMW fan.  So I think certified used may be the way to go…… the thought of 300 hp makes me happy, I’ll get some barf bags for the kids and we will be all set.

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