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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