Why Used BMWs Are So CHEAP

welcome back to exotic car play place everyone hey you guys ever wonder why used bmws are just so cheap let's talk about it now welcome back to the channel everybody mark with exotic car play place and so let's just cut right to the chase look at all these bmws down this row the first reason has to do with the fact of lease returns here we have x cars we have five series six series three series two series everything under the sun all the way down there you notice all these cars out of this entire group guaranteed at least half will likely see a lease when that lease is up two years three years down the road what generally happens with that they hit the market they flood the market a lot of them wind up at auctions some of them wind up at the dealers like this and so what ends up happening is these cars return to market with 30 40 50 000 kilometers on them and of course then the dealers are stuck trying to manage those so they have to provide incentives certified pre-owned they'll give extra extended warranties prices drive down and it makes it even worse for a person trying to sell their vehicle on the used car market privately if you have a brand new car a bmw bought new now you're trying to sell it two years later what does that mean you're competing with the dealers who are offering these extra incentives so a lot of times people buying a three or four year old bmw aren't interested in going private market because they don't get the extra tidbits and as a result prices drive down pushes all the prices down again at the dealer level or at the private level and unfortunately bmws are really susceptible to this phenomenon so the second reason why used bmws are just so cheap has to do with the fact that the initial price is actually elevated probably above and beyond what it's normally typically worth but let's look at some of these vehicles so let's start right here what do we have a bmw x4m hot vehicle lots of technology this has turbo charging and is an absolute beast beautiful vehicle absolutely right here we have a new 330 awesome vehicle new technology digital display lots of things going on there high performance four cylinder engine what do we have here an m2 competition absolutely beautiful car obviously with flares performance big brakes you've got wings you've got the wonderful s55 engine under the hood these things are absolute animals in terms of performance and of course being a bmw entities you're looking at an m8 competition or how about a new m5 competition the problem with this is there's so much research and development the technology buried under the hood in terms of you've got twin turbo charging 600 plus horsepower here of course research development you've also got technicians that have to work on these cars and those technicians have to be highly trained they also wear fancy jumpsuits and that all costs money you notice inside the dealership there's marble floors they've got free coffee so the initial price to support all of this new technology performance marble floors and all of the amenities that the dealers provide you cost money so when the vehicle sell used it doesn't matter on the used car market there's such a huge differential and it's that huge differential that looks like a mass depreciation which it is but a lot of that extra fluff in there to cause the vehicles to cost so much money in the first place is really not necessary and as a result prices are high initially then they settle down to a place where they're probably more likely and realistically worth so of course it seems to be a much bigger difference in reality these vehicles are just over inflated to begin with and so the next reason why used bmws are just so cheap let's take a look when we're looking at x models like this or like this it doesn't matter any of these bmws get very expensive to maintain so annual service costs are very very high every time you have to take this vehicle in it's going to cost you a thousand dollars plus there's no way around it even if you get a check engine light on the dashboard here all of a sudden something goes awry something's not working quite right you get a cel a check engine light on the dash just to get the dealer to look at it they're going to charge you 250 dollars they're about some dealers a little less some dealers a little more just to plug in their fancy little tuner and read what's going on under the hood and that's that's unfortunate because even if you the owner of the vehicle have your own little portable reader you plug it in you know what the problem is you you won't tell them they won't listen to you you basically take your vehicle in any way and they're going to charge you up the chute to actually plug in and do what takes to the total time about seven minutes from the time they grab the keys from the vehicle drive it around into the service bay take it in and actually scan it maybe all of 10 minutes and unfortunately they're going to charge you 250 diagnostic fee and that hurts people get sucked in they don't like that it feels like you're getting greased the other thing what ends up happening is time you just could do standard servicing even an oil change you can't get out of here for less than 250 bucks if you're taking it to the dealer so people get really scared about that and honestly people work hard for their money so they don't want to get rooked but there's benefit to you and me as we buy a used bmw even though all those costs are high if you're a little bit creative or if you find a small shop somewhere or even if you're a crafty do-it-yourselfer you can save a huge amount of money and drive the car of your dreams after all these are seriously still one of the best cars on the road any of the bmw m cars are phenomenal buys so it's great value appreciation hurts and the second owner sees some of the benefits but that's why these vehicles are so cheap because high service costs so the next reason why use bmws are just so cheap goes around to the way they're constructed a lot of people fear the worst and of course there's a lot of fear-mongering going on in the internet some of it's valid some of it's not so much but let's talk about it and that's plastic plastic plastic lots of plastic in these vehicles plastic is highly used in any brand these days it doesn't matter if you're driving a honda or a lexus or a bmw or whether you're driving even a dodge pickup truck now whether it's a wing like that that's plastic the bumpers are plastic the spoilers are plastic everywhere there's plastic in the interior half the dashboard is plastic there's plastic everywhere but unfortunately there's plastic in places that sometimes don't work and it's under the hood under the hood of these cars you get plastic intake manifolds you can get plastic water pumps plastic cooling lines and plastic hoses plastic plastic and of course a lot of that plastic even on plastic oil pans on certain models creates situations where they warp they twist they crack they split from the engine heat and a lot of these vehicles now because they're turbocharged whether it's a four-cylinder turbo or whether it's for example the b-58 engine has a single turbo b48 engines it's a turbo four so a lot of these engines have turbos turbos create lots of heat now these engines are actually known to be quite dependable these modern b58s but if you go a generation or two ago you've got the b5 n55 or the n54 before it was the first attempt at twin turbocharging a six-cylinder engine and the problem is all of these modern bmws are using plastic under the hood so what you get is accelerated wear cracking of plastics leaks breaks engine lights and expensive repairs because just because it's plastic has nothing to do with the fact that it should be cheap because it's not cheap bmw and cheap just don't mix so unfortunately that can be very very expensive now if you're a great do-it-yourselfer or you've a shop that doesn't want to rip you off or bend you over you can get a phenomenal deal you can buy yourself an awesome used bmw for a great deal because there is so much widespread fear-mongering some of it's valid but again get around some of that and you get yourself a phenomenal vehicle there are some better engines too than others by the way if you get the n63 which is the twin turbo v8 that you often find in many of the x5s or 5 series 7 series and they're with the designation 5-0 for example those have that n63 and they have more problems with heat in the hot v because the turbos are mounted between the v of the engine causes even more problems for example excessive oil consumption so there are certain problematic engines just look down this aisle here five series how about a four series how about another four series convertible how about another four series and another four series and the list goes on and on and on as we go down the aisle the point of the matter is there's incentives for all of these vehicles to buy them new these dealers have the power and the backing to sell you a vehicle for a very very small portion zero percent for two years point five percent for three years point seven five the list goes on and on and the reality is people can't deny it so they want to buy a new vehicle because the incentive is so low that can always work in your favor why would you buy a one-year-old vehicle that's maybe ten thousand dollars less but the interest rate to borrow from the bank is actually say two and a half three percent when you can get one of these brand new vehicles for 0.5 or 0.25 percent at the end of the day it may actually work out more in your favor particularly if you run the course of the loan period you can actually save money buying a new vehicle as opposed to buying that slightly used vehicle thinking you're going to save some money get a great deal and be thrifty you can actually end up spending more so the incentives are there for you to buy a new vehicle sure if you wait to a five-year-old vehicle you can get great deals because if you buy a used bmw that's saying that four five year range those vehicles now are down to about 35 40 50 percent if you're driving an m car they're depreciated so badly that at that point it's worth your time to go to the used vehicle but by that time most people are really scared to buy a five or six year old bmw and then often it's just not even in the question but for those that aren't scared honestly you can get a phenomenal deal on a five-year-old bmw at forty percent of its original msrp think about that think about a new m4 that car was a hundred and ten thousand dollars canadian and guess what in about five years time you can get that car for about fifty to sixty thousand dollars that's less than half of its original value phenomenal deal and in many cases a lot of those m cars are only driven in the summer time so a lot of times they're well looked after they're not abused often they show very very well and you can get yourself a phenomenal deal so that's why those vehicles drive down so much is mainly because the incentives on new vehicles are so aggressive and of course people are just scared to buy a used bmw that said and you're shopping for a used bmw you're probably going to want to find out which are the most reliable bmw engines right there you're going to want to click that link it's going to tell you all about it hope to see on the next one catch you real soon bye-bye you

Channel: ExoticCar PlayPlace

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Keywords: bmw, 3 series, bmw 3 series, bmw depreciation, bmw m4 depreciation, bmw 3 series depreciation, bmw used car, bmw used, bmw costs, bmw running costs, bmw maintenance costs, why does bmw use plastic parts, why used bmw are so cheap, why used bmw i3 so cheap, why used luxury cars are cheap, cheap used bmw, cheapest used bmw, cheap luxury cars, cheap luxury cars 2020, best cheap luxury cars, cool cheap luxury cars, luxury cars, exotic cars, bmw cars, bmw car

Id: bVN51rXLQNc

Length: 10min 36sec (636 seconds)

Published: Wed Sep 02 2020